It’s no secret that the field of marketing is jam packed with catchy acronym lingo. One example is KPIs, or Key Performance Indicators. Here’s a basic snapshot of this term and what it means for your business.

Simply put, KPIs are metrics you can track that will help determine how well (or not so well) your marketing efforts are doing for your business. Ranging from general to very specific, there are a vast array of possible KPIs you can track. Here are a just a few examples.

Customer Lifetime Value (CLV)

This KPI predicts how much profit your company would potentially make over the lifetime relationship with a particular customer. Knowing this metric can help you figure out which customers are most profitable and then develop an effective plan to acquire them. Retaining the most profitable customers over the long haul means greater revenue for your company.

Social Media ROI

For now, social media advertising is here to stay. Advertising through these platforms can be a great way to reach potential customers. Exactly how much business did you get from your last Facebook or Instagram ad? A smaller than expected number is a good indication you need to focus attention on revising or overhauling your plan. Knowing this KPI is crucial for maintaining a smart social media advertising budget.

Unique Website Vistors

How many different potential customers have visited your website in the past week? The past month? This KPI measures unique IP addresses that have visited your website during a set timeframe. Knowing this number can help when trying to acquire new business via your website. For instance, if your unique website visitor count is low during a particular day of the week or a certain time of the month, special promotions or campaigns could be implemented during those times to drive traffic to your site.

Cart Abandonment Rate

This specific KPI is of utmost importance if you have an e-commerce site. When a person navigates your site, adds and item or items to their shopping cart, but then leaves your site before completing the sale, they have effectively abandoned their cart. If your cart abandonment rate is high, careful consideration should be give to the reason why. Is the checkout page confusing or not designed well? Maybe your shipping costs are too high? Do you have the option for a guest checkout so customers don’t have to spend time creating an account? Tracking this KPI and then making changes if necessary can lead to more online sales and ultimate success for your business.

Need help figuring out which KPIs you should be tracking? OmniMaze can help. Contact us today!