20/04/2022 by Hannah Giamprini 0 Comments
Setting Marketing Strategy Objectives and Key Performance Indicators (KPIs)
All marketing campaigns are built on the foundation of marketing objectives.
After all, without straightforward, actionable, and attainable metrics, how do you know what you're working toward? Goal setting should always take precedence when it comes to putting together a campaign since it can serve as the foundation for the entire project.
When you meet your digital marketing targets, you're likely also achieving your overall company objectives.
There are a number of goals you can set up, but here are some of the most common goals for SMBs.
More Leads: Generating leads is one of the top priorities for businesses and marketers.
Increase conversion: Another important digital marketing objective is to convert more readers/viewers/followers into customers.
Increase sales: This is the ultimate goal for most businesses.
Increase traffic: For example, organic traffic, and traffic from social media.
When it comes to the goals we have set for our marketing objectives, it's not enough to simply say "I want more sales"; it’s important that you are specific and know exactly what objectives you want to set and exactly what KPIs you're going to use to achieve those goals.
What are KPIs?
Key Performance Indicators (KPIs) are quantifiable metrics that reflect how well an organization is achieving its stated goals and objectives.
For example, if one of your goals is to provide superior customer service, you could use a KPI to target the number of customer support requests that remain unsatisfied at the end of each week. This is a way to measure your progress toward your objective.
KPIs link an organizational vision to individual action. Ensure that the KPIs you set up are:
Setting Marketing Objectives for your SMB
Take a moment, close your eyes and picture your SMB one, five, or ten years from now.
Where do you want to be?
How big do you want your business to be?
How much revenue do you want to be bringing in?
Do you want to be lying on a beach somewhere, already having cashed out on your business?
It’s important to write these objectives down and consider what finances need to be available in order to achieve your goals. It’s important to ensure these objectives are realistic and attainable.
It’s ok to start small. Realistic business goals that you can actually achieve are far better than overly ambitious ones that never go anywhere.
Put those long term objectives into daily, weekly, or monthly tasks. Make it possible to accomplish your goals with hard work. Evaluate your business goals on a regular basis to make sure you are heading in the right direction.
Why are KPIs important for my SMB?
Tracking relevant KPIs can assist in decision-making and allow you to evaluate your business process in real-time.
KPIs are vital navigational instruments that can provide a clear picture of current levels of performance and tell you whether the business is where it needs to be.
KPIs are the only way you are going to know if you are heading in the right direction.
There is no point in setting off on a journey, if you don’t know the end destination or how you are going to get there right?
Setting KPIs (Key Performance Indicators)
We know! Chances are, when you set up your SMB, “KPIs” were the last thing you were thinking of. For most people setting up their own business, the emphasis is on creating a sustainable organization that offers job satisfaction. World domination, becoming a millionaire, and providing economic relief to millions of people probably weren’t at the forefront when you thought about setting up your own business.
As your business evolves, you might seriously need to look at KPIs. KPIs are not just for huge corporations, they are also - for SMB owners like you too!
Don’t overcomplicate things. Setting a few simple KPIs for the next 6-12 months can make your SMB just that little bit more successful. Start small, simple, and make it straightforward. Here are a few examples:
This is an easy place to start! A KPI for an SMB is to track your net profit over time.
Is your company getting more or less profitable year to year?
Net profit equals your revenue minus expenses; you can track this week to week, month to month, or year to year.
CASH FLOW FORECAST
Timing is everything! You don’t want lots of cash leaving the business at the point in the month when minimal cash is due. It’s important to strike a balance between money flowing in and out so that you’re not left out of pocket on the day your rent is due.
CUSTOMER ACQUISITION COST
How much does each new client cost your SMB? It’s worth considering sales and marketing expenses for each new customer, so you can establish whether you’re spending too much or too little.
Keep an eye on your team. If you find yourself hiring new staff on a too regular basis - look into it. Maybe your team is unmotivated or not focused. An unhappy team can have a huge impact on performance and profitability. Engage your team and see what can be done better within your SMB.
Customer satisfaction is a hugely important metric to keep track of because if your customers aren’t satisfied, they won’t keep coming back. Customer satisfaction these days is even more important than ever - because we LOVE to leave reviews! Good and bad.
RETURNING VS NEW VISITORS
Measuring the percentage of returning visitors, you see how engaged your audience is. For example, a low return rate to a blog page might indicate that your content isn’t compelling enough for people to return for more.
VISITS PER CHANNEL
Understanding your incoming traffic sources can help determine the most profitable marketing channels. If you’ve recently run a paid ad campaign via one of your social channels, you can assess the performance by looking at how much traffic (and leads) it brought in.
When setting objectives and KPIs for your SMB, think of them as part of the overall health of your business. They enable you to understand the performance and potential illnesses of your business so that you can make critical adjustments in your execution to achieve your strategic goals.