With the different needs of customers in the world today, it is inevitable for different companies to cater to such different needs. Thus, there would be companies that focus on different target markets. And for this reason, it is quite obvious that there is a need for marketing KPI, or marketing key performance indicators.
With the presence of different target markets, companies should then have different marketing objectives. There would then be a need to define the levers needed in achieving these different objectives. So, the logical step here is to first define the marketing objectives of your company. Once these are defined, then the levers that are needed in achieving them can then be defined. Defining the marketing objectives is an easy enough step because these are geared towards the overall performance and success of the company in all its marketing endeavors. It is actually the identification of the levers that needs quite a bit of attention here. The first step here is to make sure the levers are quantifiable. If your KPIs are not quantifiable, then you should find surrogates that can then make them quantifiable.
The levers are just the first things to consider here. The next in line would be the company’s internal sales. These should be considered so as to determine the progress of the company in the market. If the internal sales are quite high, then you would know that your KPIs have been working in accordance to the goals of the company. If these are low, then the opposite is taking place.
Market share is also another aspect closely related to internal sales. When you check the sales of your company, you should also analyze just how big its market share is. This way, you can then interpret your marketing KPI in a more meaningful way. When you talk about market share, other concepts are closely related as well. The evolution index, for starters, is one of them. This pertains to the extent of the brand’s growth that your company is carrying. Brand awareness is also important. You should pay attention to the particular brand your company is carrying that is considered a big hit amongst your customers.
There are actually so many areas that marketing KPI can cover. Just to mention a few, these include revenue, strength, acquisition, and growth. This is just one of the many steps in ensuring effective marketing for a company. Remember that marketing is a very volatile industry. One minute, certain marketing trends are deemed effective. The next minute, they are rendered useless already. Thus, when marketing key performance indicators are already established, it would be better for the company to implement marketing metrics right after. Of course, this should be done in accordance to the interpretation of the KPIs that have been determined. Without this interpretation, then the purpose of the whole endeavor would be defeated.
More importantly, the data collected, especially in the determination of marketing KPI, should be as accurate as possible. Collection should be done as consistently as possible, so that the assessment and interpretation of the data would be accurate. With the support of such consistency, many changes can be determined and implemented accordingly.
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