The inbound marketing revolution means that your brand is publishing and producing more than it ever has before – and as a result, there is more data to work with. Once you’ve established your business goals, created an inbound marketing strategy and implemented the strategy through strategic content and social media marketing, you need to figure out what all of those pieces are doing for your business.
That’s where KPI’s come in (and one of the reasons we love working with the Hubspot platform). Key performance indicators can help you understand your data, make key decisions and improve your inbound marketing efforts.
When it comes to stats and data, you can really geek with inbound marketing. There is a lot of activity across different channels – which can sometimes lead to a data overload. To make things simple, and help prove the value of inbound to the rest of your company, it’s helpful to focus on a few key stats that paint the best picture of where you’ve been, where you are now and where you are going in terms of marketing.
Here are three places to focus your attention:
Sales Revenue from Inbound Marketing
This KPI gives you the “bottom line” of your inbound marketing. It answers the question “Why are we doing this?” Any new business from inbound marketing needs to be identified and claimed. You’ll need to separate your inbound activities from your outbound activities. Here’s a quick refresher.
- Optimized web content.
- Online broadcasting – like podcasts.
- Blog content strategy and publishing.
- Visual content creation.
- Social media publication and outreach.
- Long form content publishing (white papers, guides, ebooks).
- Lead nurturing emails.
- Direct email marketing campaigns.
- Pay per click advertising.
- Display advertising.
- Telemarketing/cold calling
Tracking your sales directly from inbound actions will give you a clear picture of how your inbound activities are playing into sales.
Customer Lifetime Value
Inbound marketing is based on developing trust – and when you do you’re rewarded with long term customers who come back to you again and again. Fortunately, this isn’t just a warm and fuzzy statement. You can prove it with your stats.
You can determine the lifetime value of a customer by looking at the average sale per customer, the average number of times a customer purchases per year and the average number of years a customer buys from you.
Website Traffic to Marketing Leads
Most marketers look at website traffic as a key indicator of success – but that stat by itself paints an incomplete picture. Traffic in and of itself is worthless unless it is leading to sales. Comparing the website traffic to marketing leads, and measuring this figure over time will help you determine the effectiveness of your inbound marketing campaigns.
Focus on the website traffic, overall marketing leads and the visit-to-lead conversion rate. It can also be helpful to break down the traffic, leads and conversion rate based on their source (ie: blog marketing, social media).
These KPI’s are important starting places for evaluating your inbound marketing – but there’s much more to discover. With a strategic approach and the right measurement tools in place, you can gain insight and refine your campaigns with KPIs.