10 KPIs You Should Be Tracking
September 15, 2021
To properly scale your business, you must look at tangible metrics. In this quick guide, we highlight important KPIs that you should analyze.
What Are KPIs?
Before we get into essential KPIs for your business, let’s first define what they are and why they’re important.
A KPI, or key performance indicator, is a business tool. It is a measurable value that helps determine success. They also help you identify areas of your business that need improvement.
Ways KPIs Can Help You
- Check whether you’re on track to reach your financial goals.
- Analyze the success of your business strategies.
- Identify areas of your business that need improvement.
- Determine whether your customers are satisfied or not.
Now that we’ve gone over the importance of establishing key metrics for your business, below are 10 KPIs you should be tracking.
1. Customer Acquisition Cost
This metric determines how much money it costs to convert a lead into a customer. It helps you evaluate the cost-effectiveness of your marketing campaigns.
2. Customer Lifetime Value
Customer lifetime value allows you to gauge the value your business is getting from long-term customer relationships.
This KPI also helps you to hone in on which medium is helping you gain the best customers for the best price.
3. Social Media Engagement
Social media engagement helps you to identify the effectiveness of your organic and paid social media marketing efforts.
4. Marketing ROI
ROI is a crucial element when reviewing performance. It helps you plan future budgets and set targets.
Here’s how to calculate marketing ROI:
(sales growth – marketing investment) / marketing investment
5. Email Open Rate
Email open rate measures how many people open your messages. The ideal open rate varies by industry, but a sweet spot for most businesses is between 15 and 25 percent.
6. Website Visitors
Measuring organic website traffic is important for measuring the effectiveness of your content marketing and SEO strategy.
7. Conversion Rate
Conversion rate is the percentage of website visitors who completed a desired action — for example, making a purchase or subscribing to your email list.
8. Number of Customers
Determining the number of customers you’ve gained helps you understand whether you’re meeting your customers’ needs.
9. Employee Turnover Rate
Your employee turnover rate helps you to improve training measures, company culture, and benefits packages.
Here’s how to calculate your employee turnover rate:
number of employees departed / average number of employees
10. Employee Satisfaction
Employee satisfaction is paramount for success. Research suggests that employees work 12 percent more effectively when they’re happy at work.
To measure employee happiness, you can conduct team surveys to collect feedback.
Set and Track KPIs with Spin Modern
Don’t know where to start with establishing your KPIs? We’ve got you covered. Spin Modern helps you set objectives and track marketing KPIs.
We’ll also give you everything you need to reach your goals and successfully scale your business.
Looking for more than 10 KPIs you should be tracking? Or ready to take your business to new heights, call us today!