This blog was written by me and originally published in 2022 on the Growth Tribe blog. The accompanying Tracking Resource was also created by me. The goal of this content was to inform the reader and encourage downloads of the email-gated resource to collect leads to be nurtured in future. Note: The original website has changed significantly since this blog was posted, so I’ve pasted the content below and formatted it as intended.
If you’re anything like us, you spend a lot of time thinking about KPIs. Key Performance Indicators (KPIs) are typically measurable figures that clearly show how you and your team are performing. Metrics like revenue, customer acquisition cost (CAC), website traffic or customer lifetime value (CLTV) are tracked, measured and used to judge how well your team is performing.
These KPIs can be used to regularly measure and track your business performance and can be assigned to whole business units, smaller teams, and even individual contributors. It’s worth noting here that KPIs vary a lot depending on what your company or team needs to achieve. KPIs within a SaaS company probably look different from those at an e-commerce startup or a charitable organisation.
With that in mind, here are some examples of KPIs commonly used to track performance in growth-focused companies:
How much is it costing your sales and marketing teams to bring on each new customer? Use this simple equation to figure it out:
How much is each customer worth over their lifetime as a customer? Do they buy once and never come back? Do they refer others to your business? Do they come back for more? All of these things factor into determining the lifetime value of each customer.
CLTV = Lifetime value ($) X Average customer lifespan
How are people getting to your website? Commonly tracked sources are direct, paid, organic, referral, social and email, but depending on your ways of working, others may be more logical.
How many of your landing page visitors take the action you want them to when they’re on your landing pages? Maybe you want them to sign up to your newsletter, add an item to their cart or make a donation. The formula looks like this:
Speaking of leads, it’s important to define how users will move along the marketing funnel and measure each stage of this. How many visitors become leads, how many leads become MQLs, and eventually how many people become customers?