Key performance indicators (KPIs) are the way of measuring the performance and the effectiveness of a business, brand, project, and organization in relation to their goals. Measuring and tracking the performance of your brands is vital in helping you evaluate the progress of your business. This is why the KPIs for consumer brands must be measured and tracked to ensure continuous growth.
Following are the top 10 KPIs that must be measured by consumer brands.
1. Sales Growth
The sole purpose of any business is to have sales growth. Measuring your growth in sales revenue will help evaluate your marketing’s success. Measuring marketing’s effect on your sales growth will enable you to figure out the marketing that does not drive sales. Measuring your sales growth is one of the major KPIs to enhance strategic planning of your business. This makes it vital as one of the KPIs to measure when you want to determine the long-term health of your company.
The most crucial part of digital marketing for a lot of consumer brands is lead generation. The best means to get these leads is via the internet. You need a constant supply of new leads to amass revenue, whether you sell to other businesses or consumers.
Leads help you to get sales opportunities which contribute to your chances of expanding your business. You need to measure leads in your KPIs to know your chances of sales growth.
3. Client Acquisition Cost
The objective of establishing a business is to have customers to buy your products in order to make a profit. To achieve this objective, you have to spend on sale and marketing to reach and convince a prospective customer to buy from your company. The cost associated with reaching new prospects is known as the client acquisition cost.
You need to dig deeper to know if there is any discrepancy between your conversion rates and client acquisition cost. The moment you figure this out, setting goals of the number of new clients you want to have and allocation of marketing budget to accomplish this will be easy.
Client acquisition cost can help you evaluate the cost-effectiveness of your marketing campaigns, which makes it one of the most critical KPIs in e-commerce.
4. Sales Volume by Location
You can always know why the demand for your brand is low and high for both online transactions and physical stores by comparing sales volumes across locations. When you use this metric to measure your product sales, you may realize that it performs well in one location than the other which can enable you to customize such product for that location it is striving.
Every sales manager, business owner, and sales professional deeply care about how to increase sales volume. The evaluation of sales volume by location as part of your KPIs is essential. It will let you know that you don’t have to be more lucky than good for everything to work out because it will help you understand how to optimize your marketing campaign.
5. Competitor Pricing
Customers use price as a key criterion to compare alternatives before making their decision. You can also use competitor pricing to evaluate your company’s position. You can create a competitive strategy by being conscious of your competitor’s pricing.
Measuring competitor price in your KPIs will help you to know whether your prices are lower, higher, or match competitors. You can use this to make your decision whether to match competitors’ price or a lower price to ensure your customers get the best price, and you the most sales.
6. Lifetime Value of a Customer
This is one of the KPIs that ensure you know the value of your customers over a period of time you engage with them in a business transaction. To know the value of your customers might seem difficult; however, it is essential for you to know.
The lifetime value of a customer helps you measure your business profit over a long-term customer relationship. You can use this metric to know which channel enables you to acquire the best customers for the best price. With this, you can optimize your services by delivering high-quality products and providing excellent customer support.
7. Upsell/Cross-Sell Rates
Upselling and cross-selling is a well-known strategy among online retailers with the hope of improving customer service, item per sale, and increasing average order value with relevant suggestions. Measuring the upsell and cross-sell of your products and using the data to identify whether certain product/service respond well to certain verticals pitches. The measurement of this KPI is important in helping you adjust your marketing effort accordingly.
8. Social Media Reach and Engagement
Social media allows you to share your content and interact with your potential and current customers, which makes it a significant part of your inbound marketing efforts.
To measure this KPI is to evaluate your growth on social media such as Facebook and Twitter. You can easily get the information about this measurement when needed from these social media sites due to their in-built analysis and tracking. These social media platforms can measure engagement through metrics the determine customer conversions, lead conversions, and percentage of web traffic associated with your social media efforts.
9. Email Marketing Performance
Apart from your social media, your email marketing strategy is important to your customer conversion rates. As a matter of necessity, every email marketing campaign should be measured and analyzed over and over again.
However, you should note that measuring your email marketing tactic is multifaceted, which includes forward/shares, open rate, delivery rate, conversion rate, unsubscribe rate, and click-through rate. The merit of measuring this KPI cannot be overemphasized.
10. Sales Team Response Time
Generally, sales teams don’t respond quickly to the leads generated. According to research, the chances of making a successful contact with a lead when a contact attempt occurs within 5 minutes are 100 times greater, compared to 30 minutes after the lead was submitted. Measuring how fast your competitor sales team respond to lead in comparison to your sales team respond to leads will enable you to improve.
After getting all the data on your KPIs, evaluate the data to comprehend why you have such outcomes. Then, find how you can enhance performance and back it with action. And always remember that as important as KPIs are, they must be synergized with a realistic goal.