Traffic-to-Lead Ratio

Marketing indicators of business efficiency: Read mandatory

Any work can be appreciated. Even the work of the shaman, although the assessment will be simple – it came true or did not come true. And if we are talking about the evaluation of marketing activities, then there is complete freedom to measure the results.

Marketing performance indicators can be sorted out for hours. And they are easy to get confused. But still, we, marketers, and you, entrepreneurs, need to understand what to focus on when drawing up a report on attracting, retaining and monetizing customers.


As I have already said, there are a lot of criteria for evaluating marketing; there are dozens or even hundreds of them. But personally, I single out 15 basic ones.

In this case, even so much is very difficult to control immediately, however, and not always necessary. The best solution would be to evaluate the 5 most important criteria on an ongoing basis and the remaining 10 times periodically.

Therefore, I warn you in advance, do not drive your marketing into the same reports and figures, in a small business resources are limited, and you need to find a middle ground between transparency and real actions.

This we will do now. We will determine the most suitable for you, the main marketing indicators.

Important! The order of the indicators does not affect their priority. You define the priority individually for yourself.

1. Sales

The main task and responsibility of the marketer is to attract and monetize customers. Everyone agrees. They will even reinforce with confidence “Why else do you need a marketer?”.

Cost Per Lead.
Customer Value. Inbound Marketing ROI

And this means that we must evaluate the effectiveness of marketing, first of all, by sales. In other words, how much money goes to the cashier for a certain period of time.

But you also need to clearly understand that in this indicator sellers, merchandising, motivational schemes and other elements of business play a big role. Which can not always affect the marketer.

Therefore, the indicator is important, but I definitely can not call it fundamental for marketing.

2. Profit

The question of backfilling: “Does marketing influence the company’s profits?”. One answer is yes! And the reason is all his events. Promotions, sales, gifts, bonuses – for the most part cut the margin, although they increase turnover.

Therefore, in addition to turnover must be considered the profit of the actions performed. And personally, I was a witness when there were many customers, and the result was MINUSOVA.

Ideally, always analyze why profits are falling or growing. I have also been a frequent witness when marketing increases profits through interesting schemes.

And the sales department, on the contrary, buries all profits, as it gives discounts to the left and right. Considering that only a low price can convince a customer to buy goods from you. Familiar problem, right ?!

3. The cost of one attracted client

For me, this is the top 3 key marketing indicators. After all, when you clearly know how much one client costs you, you can plan a budget and think in the category “100 clients cost me $ 30”.

Great? Crazy! We personally know how much you are willing to invest in attracting customers to your services.

Calculate this indicator of the effectiveness of marketing activities is possible only after the advertising campaign. And for this you need to be able to count the advertising efficiency

In short, you see how much money was spent on each advertising channel and how many people who bought something came through this channel. The result may shock you, as you will see that some channels are simply not profitable.

4. Market share

You have competitors – this is a fact. You are fighting with them for some customers – this is also a fact. So the “pie” is divided into several parts and you need to know what proportion of yours.
This is not to tickle your ego. This determines your strategy for several years and shows the effectiveness of the actions taken now.

I have a case study that proves the suitability of this measurement. We were very surprised with my client (construction machinery) when we learned that his market share in the sales territory was 60%.

And this is with 6 competitors for the entire sales territory. As you understand, the right decision in this case was not to win a larger piece of cake, but to retain old customers and expand to other sales territories.

5. Lida

The 15 Marketing KPIs
15 helpful marketing KPIs

“Maybe buy, maybe not. I do not know this yet, ”it is this phrase that describes the concept of“ lead. ” You can describe it more like this – “a person interested in your product”. Most often this is expressed in the form of a call to the company or an application on the landing page. And it is the marketer of these leads that generates through inbound marketing.

At this step, you should consider not only the number of leads, but also their quality. Especially if you use the services of agencies. Since it is not difficult to attract leads, you just need to make the cheapest call to action.

It’s much harder to make really high-quality applications that do not waste your time and buy for pretty checks.

6. Conversion

Conversion is the percentage of a client’s transition from one stage to another. Most often, this business indicator is considered to be in the stages of the sales funnel

At the marketing level, one conclusion can be made: the higher the conversion, the better the quality traffic will come to your business.

At the sales level, this indicator shows the quality of the processing of these applications. With this indicator, you can understand whether you have bad marketing or bad sellers and product.

For those who like to look at everything under a microscope, you need to break the client’s entire path from the first contact to the purchase, and count the conversion at each stage. For those who do not like to bother, it is enough to consider conversion from lead to a deal.

Of course, this is rude, but it is also an indicator and speaks about business performance. If you want my opinion, then I think conversion rate is very controversial.

7. LTV

“Customer Lifetime Value”, in simple terms, is the total amount of money that a client gives you during the time he interacts with you.

Example: the average duration of a typical person in a gym is 6 months. With a subscription price of $ 75. For your LTV client will bring you $ 450 (6 months * $ 75).

Key Performance Indicators
marketing qualified leads

Marketing affects customer retention and return. You need to remember that the longer the client is with you, the more often he comes to you, the more you earn.

This refers to the idea of ​​“How to make more money without additional investments”. Moreover, if you do not know LTV, then you do not know the real value of the client (indicator No. 3).

It is possible to accurately calculate this indicator only after the data has been worked out (someone even needs big-data). But after you learn that in the course of his entire life, he will actually bring you more than he does in the first purchase, then his attitude towards him changes. And the cost you are willing to pay for a client is growing by leaps and bounds.

8. Lost Customers

Customers not only come, but also leave. This is a sad fact that does not change, no matter how you want to be with a client, until death separates you. In addition, competitors are not asleep and always add fuel to the fire.

To calculate this indicator, you need to determine after what period the client is considered lost, after how much of his inaction (no purchases).

You can relate it to those who need to reanimate. Moreover, I recommend that you create a whole scenario of marketing actions to activate such customers, because if they leave, there is always a good reason for this.

9. CTR

If you give a lot of advertising on the Internet, then you need to pay attention to the click-through rate. This is the ratio of clicks to ad impressions.

Most often we hear this definition when talking about contextual advertising and targeted advertising.

This ratio will show how you have an interesting and relevant advertising for potential customers. But you need to have a clear view, as too much importance is not always good.

Everything is the same as with conversion. Clicks can be many, and applications are few. You need to keep this indicator at the level so that the maximum number of those who clicked will be transferred to “Lead” status.

10. Cost per click

Click-click. Do you think mouse clicking sounds like that? Not! It sounds like a waste of your money when a client goes to your site for advertising. In Internet marketing, basically all advertising campaigns have switched to paying not for impressions, but for referrals.

And that means the more often a customer clicks, the more you pay. Therefore, you need to know and be able to determine the price of a click.

You also need to know this value in order to understand how a profitable lead is coming out, and even better – the client.

If you make the wrong advertisements or choose the wrong strategy, you can get very expensive clicks.

And I do not exaggerate. I saw the $ 20 clicks with my own eyes. I heard (but did not see) that there are even clicks on $ 30.

For example, when setting up contextual advertising, I specifically lower the CTR (although everyone is increasing it) by writing the cost in an advertisement. Thus, I save my money, because I don’t pay for people who are initially expensive.

11. Number of customers

Here we come to one of the most beloved and favorite indicators of business performance assessment for entrepreneurs – the number of clients.

Usually everyone considers it as default. Since, according to most, the marketer is only needed to attract customers. If there are no customers, then marketing is zero. Although this is not always true.

However, usually new customers are considered according to the formula:

Number of sales = number of customers.

In this and the trick, among sales there are always both new and old customers. Therefore, I recommend counting separately the number of new customers who have never bought anything from you. And separately old customers who have made one purchase before.

Again! I draw your attention to the need to separate new and old customers. You need to work on both flank, and most often you are thinking about stimulating repeat sales at the last moment, the whole focus only on new ones. And in vain!

An old customer is always cheaper and brings a lot more money, because he already trusts you.

12. Average bill

When you have a small commodity matrix, then determining the average check is easy. And when you have a lot of products and customers are all different in status, you start to “swim.”

Cost of Customer Acquisition (COCA)
Lifetime Value of a Customer (LTV)

Both in the first and in the second case the average check can and should be considered. Since it shows how high-quality your customers are and how much you motivate them to buy for a larger amount,

For many, the increase in the average check is the task of sales managers, but I’ll reveal to you the secret, marketing also influences it.

To increase this figure, you can run a magnet on top of an up-sell / cros-sell or simply write the price correctly. There are lots of options and, most interestingly, almost all of them do not require additional investments.

13. NPS

NPS talks about measuring consumer loyalty index. In simple terms, this is how satisfied customers are with their work with your company.

And until the auto dealer appeared in our client portfolio, we neglected this indicator. It seemed to us that it does not directly affect money. But we were wrong.

And so now, when drawing up the motivation of the staff, we even allocate additional encouragement for this indicator.

It is measured in practice in two ways.

1. The simplest and most popular type of assessment NPS is a button with a smile (smile / neutrality / sadness). This option is suitable for any company where the client comes to the trading floor.
2. In the absence of direct contact with the client, you can make calls. There is a typical phrase that most clearly identifies NPS by telephone: “What is the probability that you will recommend our product / company to your friends?”.

14. ROI

Not less important, but already quite a professional indicator – the return on investment advertising.

Usually many people know about ROI, but consider units. Although this ratio will show you working in a plus or a minus.

And then you can advertise, but it is simply not profitable. Of course, awareness is increasing, but it is as slippery as image advertising.

I will immediately show you an advanced version of this indicator – ROMI. It shows a more correct return on investment, taking into account the costs.

For example, you gave advertising and spent $ 1,500 on one of the methods, and at the exit sold for $ 15,000, where the net profit was $ 3,000. So ROMI is 200%. In simple terms, you invested $ 1500 and received $ 3000. The higher the ROI, the better the advertising channel you have chosen.

15. Brand awareness

Indicator that shows whether or not your potential customer knows you. After all, it may be that 90% of the market simply did not hear anything about you, so they do not come and do not use your super offer.

Of course, no need to achieve full recognition, it is from a series of mission impossible. But part of the market should know you so that, if necessary, she remembers not only about competitors.

It is impossible to calculate this figure with surgical precision, especially if you have a market volume in tens / hundreds of thousands of people.

Therefore, do the following: polling the maximum possible number of people in different places (for authenticity), after which the result is proportionally applied to the market volume. The more survey, the higher the reliability.


After reading you should have become entangled in all indicators and say: “Well, it’s all in the bath! Marketing is a creative profession, but creativity cannot be assessed. ”

I, of course, will get angry at this moment and still try to convey to you that marketing without numbers is blind and deaf-and-dumb marketing. So start small, with 1-2 indicators, then add a few more.

If you have not seen here the marketing performance indicators that you consider in your business and are confident that they are very important, this does not mean that they are bad.

There are a huge number of them, and of course everything is individual. I also presented those that I consider the most priority and universal in any business.

Leave a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Scroll to Top