Optimize Your Business Using the Top 31 KPI’s
Virtually every business has several varying factors that contribute to the success or setbacks of that particular operation. Those factors are called KPI’s or Key Performance Indicators, which are different measures used to quantify the progress a business is achieving in any particular area.
We will focus on KPI’s within six major areas of businesses that operate online: Sales, Marketing, SEO (Search Engine Optimization), SEM (Search Engine Marketing), Social Media, and Business Metrics. By paying attention to the KPI’s associated with each facet of the business you can learn more about what is working and what is not.
1. Quote to Close Ratio – Amount of sales or sign-ups achieved against the amount of quotes delivered by sales staff.
2. Sales per Rep – This looks at the amount of sales achieved for each individual representative, as well as the average sales per representative when looking at a company or division as a whole.
3. Product Performance – Measures customer interest in each individual product or service to help identify more and less popular products.
4. Sales by Contact Method – Determines the amount of sales achieved by a given method of contact (phone, direct mail, e-mail, referral, etc.).
5. Sales Target – A sales goal typically set against last year’s or last month’s sales numbers.
6. Sales Opportunities – Measures possible sales opportunities in any specific area. Typically used geographically or in b2b situations, by sector.
7. Cost Per Lead – The dollar amount that each new lead costs you in any given paid marketing campaign.
8. Website Traffic Lead Ratio – The percentage of website visitors that fill out a form and become “a lead”.
9. First Visit Metric – The amount of visitors that sign up or purchase on their very first visit to your location or website.
10. Returning Visitor Metric – The amount or percentage of visitors that did not sign up or purchase on their first visit, but came back and became interested in the product at a later date.
11. Conversion Rate – This measures the amount of people who view an ad, email, or landing page against the amount of people who purchase the product or sign up for the service.
12. Return on Marketing Investment – Percentage of money earned on marketing dollars spent. For example, if you spent $100 on marketing that resulted in $150 in profit, you have a 50% return on marketing investment.
13. Landing Page Performance – This metric analyzes the performance of multiple landing pages when compared against each other, particularly focusing on the amount of visitors a page receives versus the amount of customers the page generated.
14. Keyword Opportunity – Looks at the potential for ranking higher on search engines based on keyword.
15. SEO Keyword Ranking – Analyzes the rank of particular keywords that are relevant to your site. Helpful in identifying the amount of competition that exists within a particular niche.
16. Keyword Click-Through-Rate – Measures the percentage of people who “click through” to your website per specific keyword search.
17. SEO Visibility – Illustrates your site’s visibility on search engines when compared to a previous period.
18. Domain Authority – Measures the authority or “trust factor” that your website has in a particular niche.
19. Organic Search Traffic – Amount of visitors that come to your website from doing basic keyword searches, as opposed to those who visit the site from a paid ad campaign.
20. Cost per Click – When looking at an individual ad campaign, this metric finds the average cost that each ad click costs. Helpful in identifying stronger performing campaigns.
21. Cost per Impression – This metric finds the dollar amount you are paying per ad displayed (but not necessarily clicked). Typically shown in cost per 1,000 impressions.
22. Cost per Lead – the cost, amount of money spent, to obtain a lead which is typically a form fill or a phone call
23. Cost per Sale – the cost, amount of money spent, to obtain a sale
24. Conversion – this allows you to track which campaign, AdGroup, keyword, advertisement, and landing page, helped you obtain the conversion (which could be a lead, sale or however you wish to identify a conversion)
Social Media Metrics
25. Engagement – Shows how your audience is interacting with your ad or page post.
26. Likes / Followers – Amount of likes or followers that a particular campaign generates. Also can be used to quantify overall page or account likes or follows.
27. Click-through Ratio – A percentage that conveys the amount of people who see your advertisement versus those who actually click on it. Very helpful in identifying stronger-performing ad campaigns.
28. User Demographic – This metric helps you find out what type of audience is seeing and responding to your ad campaign. Helpful in targeting the right audience.
29. Page / Post Activity – Measures activity taking place on a page, page post, or paid ad. The more activity, the better, generally speaking.
30. Growth – Measuring current sales numbers against last months, last years, or last quarter’s numbers.
31. Profit Margin – The difference in cost to acquire goods or services against sales price, minus expenses.
While the KPI’s listed are some of the more popular and helpful ones used by many companies, there are countless other KPI’s that can be used to measure the performance of a company or ad campaign. By paying attention to these important indicators, you will achieve a better understanding of how your business works – what your strengths are, and what you need to work on.
I have always like the phrase “you have to measure it to improve it” , in other words you cannot improve on something if you do not have a bench mark or know if there is an issue.