In an effort to grow, a company may use the rate of new customers as a KPI by diving the number of new customers by the total number of customers. Firms may also measure customer retention by counting the number of repeat sales. When tracking customers online, a company can use a website statistics program to track the number of new and return visitors, the number of page views and the length of time visitors spend on the site. To help increase the number of new customers, a business may conduct a demographic analysis of prospective customers to create a strategic marketing plan; it may also look for common attributes in accepted, rejected and pending business contracts.
Common Marketing KPIs (Key Performance Indicators)
By Flora Richards-Gustafson, eHow Contributor
Found This Helpful
A key performance indicator (KPI) is a type of measurement companies use to evaluate overall success or the success of an activity, like a marketing campaign. A company may measure success in terms of reaching a strategic goal or an operational goal, like the percentage of repeat clients. Common marketing KPIs are based on activities that can help improve performance or customer relations.
Other People Are Reading
-
Rate of New and Returning Customers
Client Turnover
-
The goal for a company is to have little to no client turnover. A business that has a website can track the number of return clients with whom it conducted business, to measure client attrition. Alternatively, a corporation may use the assistance of a monitoring service to measure client turnover. While marketing is helpful for gaining new clients, it must also focus on keeping current clients, as it is cheaper to retain clients than attract new ones. Client turnover as a KPI can also take into account the voluntary or involuntary reason for client turnover. Voluntary reasons clients may leave a company include high prices or unsatisfactory customer service. Involuntary reasons a client may leave a company include relocation to a new area, or death.
Rate of Sales
-
The rate of sales KPI evaluates how well a company performed within a certain period, or when there is a promotion. If the rate of sales is low before a special promotion, this is a good indicator that a company needs to enhance its marketing efforts, or that the items or services sold are not attractive to consumers. After a promotion, a good marketing KPI is the increase of sales well after its end date.
Revenue
-
Ideally, the marketing department of a company should help generate an increase in revenue as a monetary unit or during a specific period of time. In addition to the money generated by sales, a company also needs to take into account the outstanding balances of customers. Marketing can help generate revenue by strategically promoting items or services to target customers whose demographics are deemed most profitable to the company.
-
-
