Deirdre Breakenridge helps you determine the best external marketing activities, including branding, demand/lead generation, PR, advertising, events, and website.
- Did you know that according to a NASDAQ study, 40% of chief communications officers track a maximum of four KPIs at a time? This is important to keep in mind because it shows you need to be very selective in the KPIs you measure. Be sure to only track the KPIs and metrics based on the resources you have. To make it easier for you to visualize a couple of important KPIs and metrics to track, let's use an example of a goal setting process for VTech, a product for veterans.
In this example, Mark, the CMO of VTech, predicts that the company is going to make $500,000 in revenue yearly and 50% of the revenue will be from your new software product release. Clearly, Mark's goal is financial and you would have to make $250,000 in sales. In order to reach the sales goal, Mark would need the sales team to make sales of $10,000 per customer or 25 paying customers in the year.
Because there's a one in five success rate for conversion and accepted and predicted success rate, the sales team would need to generate 50 qualified leads. Here are some examples of VTech's website and financial goals, followed by the KPIs and metrics that would help their marketing team. Don't forget to share your data with your sales and web teams and you'll need their data to further prove your product success. If you have a website goal, then website traffic is Mark's KPI and his benchmarking metrics might be number one, visitors per week, the increase of traffic each week by unique visitors.
Number two, bounce rate, the decrease of veterans abandoning VTech's website landing page per month. Number three, session length, the increase of overall time spent on the VTech software per month. If you have a financial goal, then lead and sales conversion is your KPI and your benchmarking metrics might be number one, community users, the increase in VTech community users each month. Number two, member signups, the increase in member signups each month.
And number three, paying customers, the increase in conversions to paying customers every month. Measurement requires an investment of time, people, and financial resources. Although we've only discussed two KPIs and associated metrics to help gauge success, it's important to be realistic about the number of areas you benchmark. Remember, your organization has a finite set of resources. If you're too over reaching with your KPIs and metrics, then you may not have the proper resources in place to evaluate and report.
If you consider the different KPIs and metrics in this video then you may find it easier to chart a course to sail success.
- Building your go-to-market (GTM) plan foundation
- Assessing whether you need a marketing or GTM plan
- Entering new markets with a competitive advantage
- Developing your product vision and message
- Setting your product price at launch
- Setting up your channel strategy
- Driving better channel performance
- Evaluating KPIs and metrics
- Storytelling and the customer journey