Have you ever found yourself trapped in between optimizing every single step of your marketing campaigns?
As a newbie, you might thinkn of a marketing campaign as an advertisement or a post update that links to a website where you will collect the leads or sign ups. But that’s not it. The story of sales funnels and its KPIs starts from the point when you want to take care of your marketing with some standardized forms of action. In a nutshell, a sales funnel will build your layout and KPIs will act as its components.
Key Performance Indicators (KPIs) can be tracked by some of the most commonly used metrics. However, variations of these metrics depend upon your business goals.
An awareness stage, as the name suggests, is the top level in your funnel. It brings in the most number of audience in your campaign in comparison to all the other stages. Every tom dick and harry shall come to see you no matter what causes come to visit your landing page.
- Cost-Per-Mille (CPM)
When you are able to get some people on board, that’s your zero to one game. This stage wants to ensure you are getting closer to what you are aiming for. If you find trouble in this stage, it’s obvious that you would have targetted the wrong audience, distribution channels or your message is not clear enough to persuade people to take an action.
- Click-Through-Rate (CTR)
- Cost-Per-Click (CPC)
Once acquired, you must be converting a lot of users. A conversion can be anything, from a simple sign up to a lead or a sales. It depends on the goals of your marketing plan. If you are not able to convert, your offer must be unfit for your users.
- Conversion Rate
- Cost-Per-Acquisition (CPA)
Who does not want to stay together? Well, your users don’t want to stay when they don’t feel you are useful to them. The market competition, innovations in products or services, and users ever changing expectations makes your retention harder and harder. Thus, your funnel shall almost always find it extremely hard to hold the users together.
- Email Opens
- Email Shares
- Lifetime Value (LTV)
This is a sweetheart of a marketing department. Your referrals are a tasty sugar that won’t cause you diabetes. A lot of marketing funnals can be made more powerful when you are able to get referrals. Now you will know why everyone wants to do viral marketing, it’s because it gets shares aka referrals.
- Referral Shares
- Invites accepted
- Referral Rate
Here is the list of 17 important sales KPIs sourced from Datapine:
- Sales Growth: Is your business growing steadily?
- Sales Target: Are you on track regarding the sales targets?
- Customer Acquisition Cost: How much does a new customer cost?
- Average Revenue per Unit: What is your average revenue per user?
- Customer Lifetime Value: How much do you expect to earn per customer?
- Customer Churn Rate: How many customers do you lose?
- Average Sales Cycle Length: How do you shorten your sales cycle?
- Lead-to-Opportunity Ratio: How about your lead quality?
- Opportunity-to-Win Ratio: How many qualified leads result in closing a deal?
- Lead Conversion Ratio: Is your conversion ratio stable?
- Number of Sales Opportunities: What is your potential purchase volume?
- Sales Opportunity Score: Do you prioritize your sales opportunities?
- Average Purchase Value: Is your average purchase value sustainable?
- Revenue per Sales Rep: How much revenue do your sales rep bring?
- Profit Margin per Sales Rep: Is your sales team profitable as expected?
- Upsell & Cross-Sell Rates: How do you increase your revenue and ROI?
- Incremental Sales by Campaign: Which campaign brings you the best results?
Take Aways 🔗︎
Out of the above basic stages in a sales funnel, which one seems the most challenging to you? Every stage has its own unique value so it can’t be underrated. The KPIs listed above are a fraction of the actual mass number of possibilities that you can customize for your business. While every business and every team within that business would have to divide and clarify their goals, two of them can’t say that their KPIs are the same, although their direction should be similar. So every marketing campaign should also have distinct value points so that it can be measured and optimized to achieve its unique value which would otherwise won’t make sense to run two campaigns burning money on two sides for no reason.