A key performance indicator, or KPIs, is a great tool that identifies ways a company can improve. Also, KPIs redirect a company’s strategies to achieve the most success. KPIs encompass a broad range of data-driven metrics. With uses that span from sales to marketing to customer relations, KPIs have a lot of potential and are constantly changing to meet the evolving business world. Here are five key performance indicators your business should be tracking this year.
While it may sound obvious, tracking sales revenue has been one of the most important KPIs for years and continues to be in 2021. Sales revenues show how successful a certain project or campaign has been. Analyzing sales revenue data can show if a marketing campaign spanning over a business quarter has not had lived up to its potential. Afterward, it is easier to determine the cause of this lack of success and what you can do to change it. On a larger scale, sales revenue can paint a picture of what is going wrong and what a company is doing right. This KPI helps businesses decide what they should continue doing and start working on to keep growing their success.
Some KPIs track customer interactions. Customer retention is a great indicator of how your company is performing and keeping customers satisfied. Many tools are effective to retain customers such as social media, emailing lists, and SEO. Customer retention is the process of keeping customers coming back. If you have a high level of customer retention, chances are you have satisfied customers. Customer retention KPIs can show why customers are returning and what is necessary to keep customers coming back for more.
SEO is an excellent KPI to be keeping track of because of its usefulness, growth in popularity, and the fact it’s becoming an industry standard. This type of KPI is exceptional because it generates naturally. SEO brings in new customers through search results and relatable content that is naturally formulated based on a consumer’s internet searches. This way the consumer’s and business’s needs are both being met. KPIs can show which ads are working and where potential customers are visiting from.
Social media KPIs are also great for the modern world because the platforms are such a popular tool in today’s marketing success. With so many social media outlets, KPIs can help determine which sites are best and which can be reserved to post last. They can also help generate post content based on individual social media sites and their users. For example, a certain post may fit your Facebook audience but not necessarily hit home from your Instagram crowd. For this reason, social media KPIs can be some of the most impactful and influential in 2021.
Marketing Qualified Leads and Sales Qualified Lead
When a potential customer joins your email list, they become a marketing qualified lead or MQL. A sales qualified lead has exceeded their position as an MQL and is ready to become a customer. KPIs can determine how likely an MQL is to become a SQL so you can improve your marketing strategy and chances of customer retention.
Still asking yourself what are KPIs? Consider reaching out to V12 Marketing Strategies to discuss the ins and outs of the marketing world. V12 Marketing Strategies by Jean Paul DeSilva uses the leading business technologies to craft marketing strategies that are forward and innovative. Call today at (918) 863-5856 to see how we can help you take your business to the next level.