In today’s increasingly-digital business landscape, everything is measurable. For growth-oriented MSPs, key performance indicators (KPIs) are essential in making sure your business is on a path to greater profitability and success. Now, there are certain profitability and sales KPIs you should be keeping track of, but what should you measure when it comes to marketing? If you’re looking to develop or refine an analytic strategy for your marketing efforts, here are some key metrics you should consider.
First of all, identifying which of your marketing efforts are paying dividends – and which aren’t – is critical to understanding your target market and allocating future spending for sustainable growth. These essential marketing metrics will help you determine exactly how much return you’re getting on a given project or investment and enable you to make adjustments to various strategies and budgets.
Customer Acquisition Rate
This is the average cost required to bring on a new client or subscriber. It’s especially valuable when calculating and allocating budgets for various marketing initiatives or establishing lead generation goals. It’s also an important metric to establish as a baseline, as it will help you compare the effectiveness of future campaigns to this standard.
Calculation: Marketing + Sales Costs
Number of New Customers
Cost Per Lead (CPL)
Similar to customer acquisition rate, CPL refers specifically to the cost of driving in a qualified lead as part of a specific campaign or marketing initiative. When coupled with ROI and acquisition rates, marketing teams can get a sense of how much money should be allocated to a given lead generation initiative. Again, this can be used to establish a baseline, or you can calculate this individually for your different marketing channels.
Calculation: Marketing + Sales Costs
Number of Qualified Leads
Return on Investment (ROI)
For business leaders, this is often the metric that matters most. ROI calculations help answer the age-old question of “am I spending my money efficiently?” ROI has a large influence on nearly all aspects of business development.
Calculation: Gain from Investment – Cost of Investment
Cost of Investment
Where are your best leads coming from? Knowing how much of your traffic is coming in organically, through referrals, via social media or other channels can provide valuable insight into the effectiveness of your website, content marketing and brand awareness strategies. It can also help you determine where you can focus more of your efforts to generate more qualified leads for your MSP business.
Some common web traffic sources are:
- Organic: People who find your site via a search engine. The stronger your search engine optimization (SEO) and keywords, the more organic traffic you will receive. This is important because it’s new people finding your site and typically looking for solutions or answers to their questions.
- Paid: This is any traffic you receive from paid placements on search engines. If you’re paying for Adwords or Remarketing, any traffic from these sources will be part of your paid traffic.
- Direct: This is traffic you receive from people entering your URL directly into their browser. Typically, this traffic is people who know your company and are coming to your website with a purpose.
- Referrals: This is traffic you receive from links that are listed on other sites. For example, let’s say that you had an article written about your company recently in an online publication. If a link to your website was included within the article, anyone who clicks on that link would be counted as referral traffic because the online publication is referring people to your site. It’s a great idea to track which sites are referring the most traffic to you because it helps provide insight into where you can potentially increase more visits via promotions.
- Social Media: Social media has become more and more useful for driving traffic and leads to your site. People frequently share articles and links via social media, so any traffic you receive from links shared on social will count as social media visits.
- Email: Email is another popular way to drive people to your website. When a user visits your website from an email link, that visit will count as email traffic.
This is the bread-and-butter KPI for any SEO or paid search marketing efforts. Analyzing the success of various keywords and search terms should directly impact keyword optimization efforts, future paid search spending and more. Make sure you identify which keywords you want to rank for (for example, your specific areas of expertise and which geographic locations you serve) and track how well you rank and improve them over time.