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After initiating a marketing campaign, we need to assess the progress and outcomes of your campaign using Key Performance Indicators (KPIs). This article will introduce what KPIs are and how to measure lead generation campaigns with specific KPIs.

 

What is KPI

KPI stands for Key Performance Indicator. It is a measurable value that demonstrates the effectiveness of a company in achieving its key business objectives. KPIs are used to evaluate the success of an organization or of a particular activity in which it engages. They are also used to monitor progress towards strategic goals and to identify areas that require improvement.

KPIs are typically used by managers at all levels to measure the performance of their teams and to identify areas for improvement. They are also used by investors to evaluate the performance of companies in which they are considering investing.

 

Measuring Advertising Results in Lead Generation

One of the most important KPIs for any business is lead generation. Lead generation is the process of identifying and cultivating potential customers for a business’s products or services. It is a critical component of any successful marketing strategy.

Leads

The number of leads generated is a key performance indicator for any business. It is a measure of the effectiveness of a company’s marketing efforts. The more leads a company generates, the more potential customers it has.

Cost/Lead

The cost per lead is another crucial key performance indicator (KPI) for any business. It serves as a measure of the effectiveness of a company’s marketing endeavors. A lower cost per lead indicates that the company’s marketing efforts are more efficient.

The formula for calculating Cost/Lead is:

Cost/Lead = Total Advertising Costs / Total Leads

example of KPI calculation by Cost/Lead

Businesses should consider other KPIs to measure the effectiveness of their marketing efforts, such as

  • Conversion rate
  • Customer acquisition cost
  • Customer lifetime value
  • Return on investment (ROI)

In addition to the above KPIs, there are a number of other factors to consider when evaluating the effectiveness of advertising campaigns in lead generation. These factors include:

  • Lead quality: Not all leads are created equal. Some leads are more likely to convert into customers than others. It is important to track the quality of your leads by measuring metrics such as lead engagement, lead qualification, and lead conversion rate.
  • Lead source: Different lead sources can have different levels of effectiveness. It is important to track the performance of your lead sources to identify which ones are generating the most qualified leads.
  • Campaign ROI: Ultimately, the goal of advertising is to generate a return on investment (ROI). ROI is calculated by dividing the total revenue generated from sales by the total advertising costs.

By tracking these KPIs and other relevant factors, organizations can gather valuable insights into the effectiveness of their advertising campaigns and make data-driven decisions about how to allocate their marketing expenditures.

 

If you need a consultant or professional team in online marketing to help you solve your business problems and lay the foundation for its success, contact Cotactic Digital Marketing Agency today!

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