The success of an inbound marketing campaign can be assessed by analyzing the key performance indicators (KPI), which will tell the actual scorecard, The CEO’s always focus on revenue and wanted to know how incorporating changes in strategy and campaign with the aim of optimizing KPI’s can achieve business goals.
Here are the six most important Key Performance Indicators any CEO wants to measure for judging the impact of marketing efforts:
- Conversion Analysis: This is one of the important point to see how good is marketing at getting people interested in your company and took backward to see the touch point from where they are affected and comes in the sales funnel. One should also measure the overall traffic whether through organic search, direct, email, website referrals, social media and direct marketing ro the overall marketing leads and visit to lead conversion ratio.
- Sales Revenue: the success of an individual campaign rests on the sales revenue generated by that campaign. The revenue will speak about the efficiency of your inbound marketing tools and activities like developing quality content, social media management, pay per click, blog creation etc and how well you applied them with specific visitors. Another root to be nurtured is the sales date directly via CRM integration and closed-loop reporting. the sales revenue can be calculated by subtracting total revenue through inbound marketing from total sales of the year.
- Customer Acquisition Cost: CAC calculation requires integration of marketing automation and CRM platform coupled with careful calculation of all cost commonly by ERP integration. CAC should separately be calculated from inbound and outbound activities to allocate budget for each campaign and keep an eye on sales targets.
- Leads to customer analysis: Leads to customer conversion data is necessary to judge lead closing ratio of any campaign . Segregation of sales qualified leads and sales accepted lead conversion ratio answer the critical questions about lead capturing ability of campaign, conversion of leads into sales at right time by CRM and whether the closing rate is high or low. Sales qualified leads are leads converted through inbound base with the help of proper landing pages whereas sales accepted leads are those that have been contacted directly by a sales representative or through other outbound ways.
- Inbound Marketing ROI: The inbound marketing ROI sets the platform for future inbound activities and serves a useful tool in planning marketing strategies and budgets along with assessing monthly and annual performance. You can curtail your budget if particular strategies are not paying value to money and can channelize it into more ROI driven channels.
- Social Media Impact: Social media management plays a fundamental role in attracting and converting customers to your business by sharing and spreading quality content through various social acts such as shares, retweets, comments, mentions and many more via Facebook, Twitter, LinkedIn, Pinterest, etc. One can breakdown the percentage of traffic, leads and customers through each platform to utilize them effectively.