The Top 5 Marketing Team KPIs You Need to Know for 2023 Success

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

KPIDescriptionFormula Example
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.CPL = Total Marketing Spend / Total Number of New LeadsCPL = ₹10,000 / 100 Leads = ₹100/Lead
Customer Retention Rate (CRR)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.CRR = Ending Customers – New Customers / Beginning CustomersCRR = 100 Customers – 10 Customers / 100 Customers = 90%
Cost per Customer Acquisition (CAC)Businesses can determine the most efficient methods by understanding how much it takes to acquire new customers.CAC = Cost of Sales and Marketing / Number of New Customers AcquiredCAC = ₹100,000 / 1000 Customers = ₹100/Customer
Return on Investment (ROI)Measures how much Revenue a specific marketing campaign generates compared to the costs of running the campaign.ROI = Net Income / Cost of Investment x 100ROI = ₹50,000 / ₹100,000 x 100 = 50%
Sales RevenueIs by far the most important KPI for a marketing team.Sales Revenue = Number of Customers x Average Price of the ServiceSales Revenue = 100 Customers x ₹1000/Customer = ₹10,000,000

How to track marketing KPIs using Google Analytics:

  1. Set up Google Analytics. If you don’t already have a Google Analytics account, you can create one for free. Once you have an account, you need to add your website’s tracking code to your website.
  2. Choose the right KPIs. Not all KPIs are created equal. You need to choose the KPIs that are most important to your business. Some common KPIs for marketing include:
    • Website traffic: This measures the number of people who visit your website.
    • Bounce rate: This measures the percentage of people who leave your website after viewing only one page.
    • Conversion rate: This measures the percentage of people who take a desired action, such as making a purchase or signing up for a newsletter.
    • Return on investment (ROI): This measures how much money you make from your marketing campaigns.
  3. Set up goals in Google Analytics. Once you have chosen your KPIs, you need to set up goals in Google Analytics. This will help you track your progress over time.
  4. Collect data. Google Analytics will collect data on your website traffic, bounce rate, conversion rate, and other KPIs.
  5. Analyze the data. Once you have collected data, you need to analyze it to see how your marketing campaigns are performing.
  6. Make changes to your campaigns. Based on your analysis, you may need to make changes to your marketing campaigns. For example, you may need to change your target audience, your messaging, or your budget.
  7. Repeat the process. The process of tracking marketing KPIs is ongoing. You should repeat the steps above on a regular basis to ensure that your marketing campaigns are effective.

Industry-wise marketing KPIs:

Different industries have different marketing goals and objectives. Therefore, the KPIs that are important for one industry may not be as important for another.

Here are some examples of marketing KPIs for different industries:

  • Beverage industry:
    • Brand awareness: This measures how well-known a brand is among its target audience.
    • Customer acquisition: This measures how many new customers a company acquires.
    • Customer retention: This measures how many existing customers a company retains.
    • Sales: This measures the total revenue generated by a company.
    • Example:
      • 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.
  • Consumer electronics industry:
    • Customer satisfaction: This measures how satisfied customers are with a company’s products and services.
    • Net promoter score (NPS): This measures how likely customers are to recommend a company’s products and services to others.
    • Customer lifetime value (CLV): This measures the total revenue that a customer generates for a company over their lifetime.
    • Brand perception: This measures how customers perceive a company’s brand.
    • Example:
    • 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.
  • Consumer entertainment services industry:
    • Number of subscribers: This measures the number of people who subscribe to a company’s service.
    • Average revenue per user (ARPU): This measures the average amount of revenue that a company generates from each subscriber.
    • Churn rate: This measures the percentage of subscribers who cancel their subscription within a certain period of time.
    • Customer engagement: This measures how often customers use a company’s service.
    • Example:
    • 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.

As you can see, the KPIs that are important for a particular industry will vary depending on the company’s goals and objectives. However, the KPIs listed above are some of the most common KPIs used in marketing.

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.