To be successful in business means to be profitable and competitive. The ultimate goal of any company and especially a SaaS start up company is the growing revenue. Marketing initiatives are essential in driving sales and vital in promoting your business. Marketing performance is strongly correlated to the overall success. Marketing strategy, though, may be a hit or miss. Marketing analytics is the engine that allows not only to understand what is working and what is not working but it also helps refine future marketing strategies and predefine success. To know the difference between winning and unsuccessful marketing efforts there are marketing metrics that should be measured and analyzed on a regular basis. And not only analyzed by the marketing team but discussed and properly interpreted throughout your organization. The most important measures are called key performance indicators or KPIs. Here are some marketing analytics KPIs that are vital for marketing success.
Any marketing campaign is aimed at driving sales and increasing company revenue. It is important to monitor revenue metrics on a daily, monthly, quarterly, yearly basis to ensure the health of your business. A lift in sales during promotional periods is a good indication of how successful your marketing tactic is.
Marketing initiatives are costly so it is very important to have a solid positive return on investment (ROI). It is frustrating to invest money in order to lose more money. To get the ROI you need to take sales growth, subtract the marketing costs and divide it by the marketing costs.
Customer Acquisition Cost (CAC)
The price of new customer acquisition is extremely important for Start-Ups since it allows to evaluate marketing initiatives efficiency, predict customer scaling and outline revenue growth. The basic CAC is calculated by dividing all costs (sales + marketing expenses) in a certain period of time by the total number of newly acquired customers for the same period of time.
Customer Lifetime Value (CLV)
It is important to understand the value of a customer to be able to refine business strategies and ROI.
CLV measurement is a powerful tool to know the revenue that an average customer may generate when being your customer. To calculate CLV just add up revenue gained from a customer (annual revenue x average customer lifespan) minus the initial cost of customer acquisition.
Leads to Close Ratio
Leads to close ratio shows the ratio between received and closed leads.To get it just divide the number of leads acquired over a certain timeframe by the number of leads that have been closed. This ratio allows to see if marketing efforts acquire leads and shows CRM performance effectiveness in providing quality leads to the sales team, timing is also important.
Your company website traffic is a crucial part of marketing efforts today. People who visit your site are your potential customers. Website KPIs include visitors, unique visitors, sessions, page views, bounce rate, average session duration, pages per session. All these measurements are useful data that allows you to see if there are issues with your site’s performance and how successful is your SEO.
Website Visitors Conversion Rate
Your website is another place for new customer engagement. You would like to know how many people visited your site and how many of them became the leads. Out of that leads some convert to be your customer. Conversion rate can be used by A/B testing that allows to optimize your website and acquire more customers. Keep in mind conversions for technology companies can include a form submit, a white paper download, a chat session or even simply visiting a pricing or demo page.
MQLs to SAL Conversion Rate
MQL (Marketing Qualified Lead) to SAL (Sales Qualified Lead) conversion rate is an important indication of how well you are scoring your leads. If the conversion rate increases that is a good sign, however, if it starts to decrease you may need to revisit your lead scoring program and your marketing tactics.
For SaaS companies, data is key. If your leads are missing critical data, sales team becomes less efficient as they are focusing their valuable time on data collection as oppose to focusing on sales. In addition without data you cannot score leads to be able to convert them to an MQL. Therefore, keeping track of your data completeness per record is a good indication of the health of your CRM.
Email Marketing Performance
Email is still a successful marketing tool for any business but especially when building or measuring nurturing program performance. Therefore, it is key to keeping track of your bounce rate, unsubscribe rate, opens and clicks.
Marketing analytics KPIs are a powerful source of data that is key to company success. They help you drive sales, acquire new and retain existing customers, refine marketing strategy, improve and launch new products/services, get to know your customers and increase your revenue. Tech start-ups cannot afford to not be on top of their KPIs as it is crucial not only for success of the business but also to raise funds.
To help with your marketing analytics or set-up automated dashboard, contact StrategicDB a boutique marketing analytics company with vast experience if helping start-ups with their analytical needs.