Top Marketing Team KPIs in 2023

Key Performance Indicators (KPIs) are what successful brands thrive on.

Marketing teams of brands like Netflix, Apple, Nike, and more have KPIs to help their brands understand whether or not their marketing efforts are converting their target audience into paying customers.

The best thing about marketing KPIs is that you can change KPIs depending on which strategies are working or not working for you.

Top 5 marketing team KPIs in 2023

1. Cost per Lead

Cost Per Lead (CPL) analyzes the effectiveness of your online marketing campaign. The lower you spend to acquire a lead, the better your marketing campaign’s performance.

Following is how to calculate Cost per Lead:

Cost per Lead = Total Marketing Spend / Total Number of New Leads

2. Customer Retention Rate

Customer retention rate measures how effective your business is toward retaining customers. The cost of obtaining new customers is five times more than keeping an existing customer. Hence it is vital to focus your marketing efforts on maintaining your current customers.

Following is how to calculate the Customer Retention Rate:

Customer Retention Rate = Ending Customers – New Customers / Beginning Customers

3. Cost per Customer Acquisition

Businesses can determine the most efficient methods by understanding how much it takes to acquire new customers.

Following is how to calculate Customer Acquisition Cost:

Customer Acquisition Cost = Cost of Sales and Marketing / Number of New Customers Acquired.

4. Return on Investment

Return on Investment, or ROI, measures how much Revenue a specific marketing campaign generates compared to the costs of running the campaign.

Following is how to calculate Return on Investment:

Return on Investment = Net Income / Cost of Investment x 100

5. Sales Revenue

Sales Revenue is by far the most important KPI for a marketing team.

Sales Revenue:

Tracks your business’s progress and overall success
Determines your business’s growth
Acts like a north star and helps set the rest of your business goals.

The following is how to calculate Sales Revenue:

Sales Revenue = Number of Customers x Average Price of the Service

How can your marketing team track KPIs?

Web Analytics is one of the most common tools for tracking KPIs. Your marketing team can use Google Analytics to track large sums of data. This includes monitoring website visitors, traffic sources, new subscribers, bounce rates, conversion rates (sales), and more.

Be aware of getting distracted by Vanity metrics. Businesses often get blindsided by Vanity metrics that give a superficial reading of positive data like a growing number of website visitors.

Using Google Analytics can help your team get data. Your team, however, will have to do a deep dive to understand the real reason behind the data obtained. For example, if the number of website visitors is increasing, understand if your target audience is coming onto your website. If most landing page visitors are exiting the page instead of clicking the CTA button, understand why that’s the case.

Understanding the metrics deeper helps you know what’s on your audience’s mind, what they are looking for, and what can make them take the action you want.

Top 3 brands and their marketing team KPI

Key performance indicators help:

Track your business’s performance
Set clear goals and daily targets to achieve this goal.
Understand the effectiveness of your business’s sales and marketing efforts.
Clearly define the ROI of your sales and marketing team.

Below are three brands and their marketing team KPIs.

Coca Cola

Source: Pexels

Coca-Cola has the largest market share in the beverage industry globally, at 48%. Coca-Cola uses brand awareness to drive engagement bringing its customers closer to the brand. The brand is harnessing social media to create more brand visibility across a vast audience globally.

Apple

Source: Pexels

Apple has always been the powerhouse when it comes to progressive technology. Apple primarily focuses on customer satisfaction, which is crucial in customer retention and increasing shareholder value.

Netflix

Customer Lifetime Value is a critical KPIs for Netflix.

Netflix works based on monthly/yearly subscriptions. The longer a customer is subscribed to Netflix, the more revenue Netflix makes. Some subscribers will only use Netflix for a month. At the same time, some customers have been using Netflix for more than three years.

Source: Pixabay

Netflix needs to track how customers engage with its platform to understand what will keep them hooked for long.

Below is how you measure a Customer’s Lifetime Value (CLV).

Customer Lifetime Value = Average Total Order Amount x Average Purchases Per Year x Retention Rate

If it weren’t for understanding how to increase its CLV, Netflix wouldn’t dominate the online streaming industry.

Which marketing team KPIs are best for business?

Brand Awareness and Sales Revenue are the best marketing KPIs to keep tabs on. Without Brand Awareness, your customers will not recognize your brand among the vast pool of your competitors.

On the other hand, having a revenue goal in mind acts like a north star in growing your business. Sales Revenue helps companies understand if their marketing efforts are getting them the revenue results to sustain the business for the long run.

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