5 vital KPIs that can help bridge the gap between marketing firms and their customers:
Marketing firms and their clients share a common goal: to achieve business growth. However, the lack of transparency and communication between the two parties can lead to misunderstandings and misaligned expectations. To avoid such situations, it is essential to establish a set of Key Performance Indicators (KPIs) that both parties can track and measure.
1. Conversion rate (CR) across the funnel:
This metric measures the percentage of visitors who take a desired action on your website, such as filling out a form or purchasing. By tracking this metric, you can identify which funnel stages need improvement and optimize your marketing efforts accordingly.
2. New revenue:
This metric measures the revenue generated from new customers. By tracking this metric, you can evaluate the effectiveness of your marketing campaigns in attracting new customers.
3. Customer acquisition cost (CAC):
This metric measures the cost of acquiring a new customer. By tracking this metric, you can identify which marketing channels are most effective in acquiring new customers and optimize your budget accordingly.
4. Customer lifetime value (LTV):
This metric measures the total revenue generated by a customer over their lifetime. By tracking this metric, you can identify which customers are most valuable to your business and optimize your marketing efforts to retain them.
5. Monthly recurring revenue (MRR) and annual recurring revenue (ARR):
These metrics measure the revenue generated from recurring subscriptions or contracts. By tracking these metrics, you can evaluate the effectiveness of your subscription-based business model and optimize your pricing strategy accordingly.
By establishing these KPIs, marketing firms and their clients can work together toward achieving common goals and objectives. It is important to note that these KPIs are not exhaustive and may vary depending on the nature of your business.