Today, marketers know they need to prove value to the C-suite – and with many marketers receiving sizable budgets for their holiday campaigns, the stakes to prove your marketing performance are at their highest. Thankfully, there’s plenty of key performance indicators (KPIs) that marketing teams can use to prove their success.
Wielding your KPIs properly during this high-pressure season could have far-reaching effects for future campaigns. For instance, your team could prove that with a little more budget, you could have generated more sales. Or, the team could quantify exactly how much revenue was generated for the company, and use it as leverage for additional recognition.
Even outside of the holiday season, KPIs are critical for marketers. They set the framework for marketers to take ownership over their team’s performance and show solid metrics to prove success instead of subjective conjecture. For that reason, marketers must measure marketing performance with KPIs.
Getting Started with KPIs
If you’re new to goal setting with KPIs, getting started is rather simple. First, you will need a performance measurement platform that can collect and analyze both online and offline campaigns. Then, you’ll need to determine what targets or objectives you’d like to measure using those KPIs.
Determining an objective is the best way to ward off vanity metrics, which show that your campaigns are doing something, but are not necessarily meeting a clear goal. For the purposes of this post, we’re going to break up goals into four main categories - marketing ROI, awareness, purchase intent, and engagement – and provide a list of KPIs to consider for each goal. Keep in mind some KPIs may appear more than once due to their flexibility.
Let’s take a closer look at these KPIs and help you find the best one to prove your holiday campaign’s success.
Marketing ROI KPIs
Marketing ROI is one of the most important metrics for marketers to prove since it shows your direct influence on the company’s bottom line. For that reason, almost every marketing campaign should measure ROI in some way, even if it’s not the top priority. Take a look at the list below to find the best KPI for your campaign.
- Cost Per Visit – Cost per visit describes how much it cost to have a consumer visit a certain webpage or location. It is great for awareness campaigns or determining whether or not consumers are engaging with campaigns.
- Cost Per Sale – This KPI goes a step further than cost-per-visit, allowing you to see how much marketing spend was needed to get a sale. If your initiative is aimed at consumers that are low in the funnel, use cost per sale instead of cost per visit.
- Sales Per Channel – If you need to take a step back and see which channels are most successful, use sales per channel. For example, you may need to see if your new ad spots on TikTok are paying off in comparison to Instagram ads.
- Sales Per Visit – You can use this KPI to see how many visits to your website result in sales. This can be helpful for scaling your awareness-based campaigns that generate web visits.
- Average Order Value – This KPI answers questions about how much a consumer spends each time they place an order with you. This can help you determine if site widgets, like product recommendations, are driving more sales.
- 301 Conversion Rate – A 301 code is a small tag you can add to marketing URLS to see how different campaigns connect. When someone clicks a marketing-related link, these 301 codes will show where they came from, and where they went. This helps you track how customers move through your sales funnel.
Brand Awareness KPIs
Brand awareness is a crucial goal for long-term brand marketing campaigns. While these KPIs can’t always be directly tied to revenue, brand awareness combined with goodwill toward the brand eventually leads to sales. Here are seven KPIs to consider tracking:
- Newsletter Signups – Getting someone’s email is often the first step to making them a paying customer. Tracking this is a great way to know customers are aware of your offerings.
- Email Open Rate – Sometimes people open emails but do not take any further action. Even though marketers would like to engage further, this metric still shows awareness among subscribers.
- Branded Keyword Visits – If someone entered your store’s name into a search engine, they were likely looking just for you. This KPI helps you measure brand exposure and even brand value and can be used in conjunction with offline KPIs to find how offline campaigns drive branded searches.
- Direct Visits – This KPI lets you see how many people typed your website right into their address bar. When someone visits your site like this, they’re aware of your site and sought you out specifically.
- Follower Growth Rate – This KPI lets you see how often people follow you on social media, and can be tracked down to a single touchpoint. Followers aren’t always active customers, but it shows they are becoming more aware of your business.
- Social Media Share Rate – When your followers share your posts, they make their own followers more aware of your business. Generally speaking, the more shares the better.
- New Visitors – If a new visitor appears on your site without being directed by a campaign, people are becoming more aware of your brand.
KPIs for Purchase Intent
Purchase intent can help you forecast sales by figuring out how close consumers are to purchasing. Further, you can use this information to learn how quickly people pass through the sales funnel, and devise opportunities to speed up their purchasing journey. Below are some KPIs that can help with that.
- Time to Convert – After a consumer engages, how long does it take to make a sale? This KPI helps you determine if your campaigns are effectively moving consumers down the funnel.
- Cart Abandonment – This KPI is an essential metric for retailers. It lets you see where consumers exited the funnel and can be used to inform engagement and retention-based campaigns.
- Average Order Value – Average order value tells marketers how much someone spends on an order after engaging with your team. This can be used to find campaigns that are generating the most revenue
- Page Conversion Rate – This KPI describes how often people convert after visiting a certain page. If a page conversion rate is low, it may need optimization.
- Direct Visits – Direct visits are great for measuring awareness and purchase intent. People who visit your site directly are not only aware of your brand, but they’re also typically more likely to convert.
- Widget Uses – Most widgets are pertinent to purchase intent, whether it’s using a contact form or searching on your “find a store” page. Make sure you break up each widget when measuring for better accuracy.
- Returning Customers – You can measure purchase intent by seeing how often people visit your website. If someone is visiting almost daily for a week, they’re likely zeroing in on your products.
- Pages Per Session – This KPI lets you see how many pages people visit during each session on your website. The more pages someone views, the more engaged they are.
Customer Engagement KPIs
Tracking engagement is important to build brand loyalty, which trickles down into a range of benefits. Engaged customers are more likely to purchase from you, promote your brand for you, and will withstand almost any controversy thrown your way. Here’s nine KPIs to help you create loyal, engaged customers.
- Page Conversion Rate – This KPI measures how often visitors take a specific action when visiting a page. A low conversion rate means more can be done, while a high conversion rate means your page is performing as intended.
- Newsletter Sign Ups – When a consumer signs up for a newsletter, they’re showing explicit interest in your brand. Tracking where newsletter signups occur helps you track which initiatives are the best at getting people interested.
- Form Abandonment – This KPI tracks how often people stop filling out forms on your website. This can be caused by the form asking for too much information or could indicate part of the form is broken. Re-examine these forms to maximize engagement.
- Bounce Rate – A high bounce rate means people are landing on your page, losing interest, and leaving without viewing another page/engaging. If most people exit after viewing a certain product page, for example, that product page may need more information.
- Email Clickthrough Rate – Email clickthrough rate describes how often someone clicks through to your site after opening an email. This is crucial to understand if your email is actionable enough.
- 301 Redirect Rate – This KPI is great for measuring offline advertising and tracking the customer journey. When someone accesses a URL through an affiliate link or social mention, then you can work a 301-redirect code to see which campaign brought them to a certain location.
- Returning Customers – This KPI lets you see how many people return to your site within a predetermined period of time. For example, a customer that visits your ecommerce site at least once a month for a year is very loyal.
- Social Media Shares – Generally speaking, when people share your posts, they’re outwardly showing their favor for your brand. This KPI is a great way to track brand loyalty while gaining more awareness.
- Pages Per Session – With this KPI, you can see how many pages people visit during each session on your website. The more pages someone views, the more engaged they are.
There are many KPIs marketers can use – and this may seem overwhelming at first. However, keep in mind you don’t need to choose just one KPI, and measuring multiple relevant KPIs is crucial to painting a full picture of your campaign’s value. By evaluating this list of KPIs and choosing your measurements carefully, you’ll be able to prove the success of your campaigns to the C-suite by the end of the holiday season.