In today’s world, social media is an essential tool to increase your brand’s awareness. Websites such as Instagram, Facebook, and Twitter can be used to reach people across the world and expose them to your company or product and how it can be useful to them. With so many ways to advertise online, it is crucial to know what aspects will directly affect your marketing goals. This is where KPIs come in handy. KPIs are short for Key Performance Indicators. By tracking the correct KPIs for your business or product you can determine the most important analytics, as well as making more knowledgeable decisions about your marketing plan.
- Percent of Sales By Online Marketing
The most important KPI is the percent of sales you are making through online marketing. Sometimes the cost of online marketing does not reciprocate the sales. However, this is rare if you are using the right online tools for business. By increasing the online sales of the product, you not only are making money, but there will be more and more people who will see other people making purchases from your company, and you will therefore receive even more inquiries about your product.
- Return on Investment
This calculation ensures that you are making expected return on your investment, if not more, on your social media marketing costs. To calculate this, you divide the sales generated from social media marketing activities by the marketing costs. These two should be your top priority.
- Lead Generation Rate
When using social media marketing, your website and posts on the social accounts will be your top salesperson. Therefore, it is important to find out what your lead conversion rate is. This is simply the amount of people visiting your posts, or website and inquiring/purchasing/downloading your product. If this number is too low, then some changes need to be made to better suit the site or social accounts and make them more interesting to viewers.
- Cost per Lead
Measuring the cost per lead source is also crucial to the success of your marketing. You always want to keep lead acquisition costs low, so you can see more growth for the business. Calculating this will ensure that you are not spending too much money on the wrong digital activities, and use them for profit and reinvestment.
- Revenue per Lead
Lastly, revenue per lead is also an important KPI to pay attention to. This KPI can forecast what future sales will be projected for the company and will also tell you where the most profitable leads are originating from.
Keeping all of these KPIs in mind is a great idea in order to enhance your sales, as well as create a great marketing plan, so money doesn’t need to be spent in areas that are not beneficial to your business.