Long-term business success requires more than just hard work and top notch customer service. Sometimes, it requires looking at the numbers. And I’m not just talking about your engagement stats on Instagram! This is where Key Performance Indicators (KPIs) come into play. KPIs are metrics that help you measure and evaluate various aspects of your business. In this blog, we’ll focus on KPIs that give you insight into your marketing efforts. Here are 3 stats you need to pay attention to for successful marketing.
To put it simply, the Customer Acquisition Cost is the amount of money it costs to gain a new customer. How much money do you have to spend before someone buys your product or service? If that number is high, you may want to reevaluate your current marketing strategy.
Tip for decreasing your Customer Acquisition Cost: Spend time researching your target market so you know exactly how to advertise to them. Where do they hangout online? What type of ads do they respond to best?
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Your Conversion Rate is the amount of people that take an action that you want. For example, if you send 100 people to your website but only 5 people place an order, your conversion rate is 5%. The higher the percentage, the better your marketing is! Tip: Pay attention to conversion rate when you run paid ads.
Tip for increasing your Conversion Rate: Make sure you list all important information on your website and that it’s easy to find. You want the process of purchasing from you or working with you to be as smooth as possible.
The Customer Retention Rate calculates the percentage of customers that come back to work with you again. The higher the retention rate, the stronger brand loyalty you have.
Tip for increasing your Customer Retention Rate: Have a plan in place for how you’ll encourage customers to come back to your business. Maybe it’s a new offer or an incentive like a discount.