Marketing Efficiency

Marketing performance indicators, or key performance indicators (KPIs), are useful not only for marketing professionals, but also for non-marketing executives. From the chief executive officer to the director of sales, the senior management team needs a company's marketing KPIs. This seems important, since there is a need to evaluate not only the obtained and revealed result (effect) from marketing activities, but also it is necessary to assess how the costs of marketing activities affect the final marketing result of the company. This is especially important since business owners tend to cut not only marketing budgets during economic downturns, but all costs with subtle effects.



Marketers face demands to show return on investment (ROI) in their activities. However, the term "investment" is applicable only to fixed assets (production, equipment - as the main means of production, purchase of buildings and structures, production sites, intangible business assets) (see article about this). In other cases, marketing, ignoring the principles of calculating profits, is given full responsibility for the profitability of the business, not taking into account the cost of purchased raw materials and the inability of the marketing service to ensure the cost of production. Why this is not unreasonable and erroneous.



Therefore, understanding marketing performance indicators is a matter of fundamental importance, since it allows you to evaluate the effectiveness of the marketing service only to the extent of the responsibility that was assigned to the marketing service, and also helps to assess the degree of significance of marketing expenses and efforts for generating company profits.

It is important to understand that marketing service initiatives contribute to the development of other areas of the company, such as sales and service processes, as well as after-sales customer service.

Important performance indicators by which companies measure marketing effectiveness are:



Progress of the marketing service in solving its tasks and in the implementation of the planned work;
Efficiency of planning marketing costs;
Indicators of changes in the value of sales may indicate that the marketing mix (product, price, place and promotion) corresponds to the tasks and realities of the current stage of the marketing plan and has been effectively worked out;
Change in consumer satisfaction indicators by metrics:
increase in brand awareness and memorability;
growth in sales of promoted goods and brands;
influx of new customers and retention of current customers;
results of consumer surveys fixing the growth of the "Customer Satisfaction Index (CSI)".
reducing the number of critical failures in the service of purchases and consumers;


Establishing marketing performance indicators is an important part of the analysis process, according to which companies plan work, predict the results obtained and evaluate: satisfy the needs of consumers, clarity of the company's image and brand, activity and efficiency in communication, position in the market. In other words, it allows you to use marketing to drive your business strategy and evaluate the role of marketing in your overall business strategy.



In marketing, there are many tools for achieving goals. Email newsletters are often used to increase the number of potential customers. Letters with business proposals are sent to thousands of emails. To get email addresses of potential customers, use such a tool as a mail address finder. Having created a sales lead databases through a tool such as https://getprospect.com/b2b-contact-database, sending emails to customers begins.



In order to measure the effectiveness of a marketing campaign, a business must agree on the marketing objectives and the KPIs it must track. For example, the goal of a marketing campaign might be to increase the presence and visibility of a company's brand on the Internet. A good KPI to measure the success of this campaign could be the number of links from thematic websites to the company website.