All of us want to land new clients and generate more revenue and profits inside our businesses. But figuring out the most important KPIs to track along the way to make that happen? Not so easy.
There are SO many different metrics we can use to monitor (and improve) lead generation and profit…which is why narrowing them down can be a challenge. Finding the most important KPIs for YOUR business helps you gain really helpful insights into what’s working (and where you can improve).
Why Is It Essential To Track The Most Important KPIs?
If you aren’t quite familiar, KPIs are pieces of information we use to measure performance, track growth, and evaluate the effectiveness of our efforts. Whether that’s the effectiveness of your website, marketing, or sales funnels, KPIs help you make strategic improvements.
It’s best to select the most important KPIs for your business based on your unique goals. Every business owner has slightly different goals and milestones, and KPIs are how we track and evaluate our efforts on those goals.
You should think of KPIs as a map guiding you toward better decisions and amazing results inside your business.
They’re often underutilized (because let’s face it—analytics can feel a little intimidating)…but they’re also hugely powerful and important.
With KPIs, you get really helpful information about your business. You can use that information to easily make better decisions and strategize changes that move you towards achieving your goals.
They can be used for lots of things, from lead generation to sales (and everything in between). If you want to start generating more leads, more revenue, and more profit in your business, knowing the most important KPIs is essential.
5 Important KPIs for Increasing Profits and Landing New Clients
Let’s get into five of the most important KPIs for your business. Tracking these specific metrics will help you increase profits and land new clients and customers.
Just remember, though: the metrics YOU need to measure are unique to you. Focus on aligning the KPIs you choose with your goals, and you’ll see success. These ideas will get you started!
1. Conversion Rate
One of the most important KPIs every business owner should track is conversion rate.
When someone goes from “lead” to “customer,” they’ve converted, meaning they took the action you wanted them to take. Although, it’s important to note that while conversion rates usually refer to purchases, they can also refer to other actions, like subscribing to your email list or booking a discovery call.
We all want to drive traffic to our business websites. But generating traffic isn’t the end-all, be-all goal. Instead, we want that person to make a purchase and convert!
Tracking your conversion rate helps you evaluate marketing and advertising strategies, along with different stages of your sales funnel. Over time, seeing an increase in conversion rates lets you know that what you’re doing is working. Otherwise, you’ll know it’s time to use other KPIs to get information about what’s not working so that you can make some strategic changes.
2. Bounce Rate
Sometimes, we click onto a website and pretty quickly decide it’s not for us. When we close that tab, we factor into that business’s bounce rate.
With bounce rate, you’ll be able to know what’s happening inside your business and fix whatever’s causing users to “bounce.” Maybe your CTAs aren’t clear enough, your website navigation is clunky, or your prices aren’t quite right. Or maybe, there aren’t reviews, you have grammatical errors that seem sketchy, or your ads were misleading for what you actually offer.
When you track your bounce rate, you’ll be able to monitor and correct those issues. And that, my friend, will boost lots of things in your business, like conversion rates, repurchase rates, revenue generated, and profit generated.
3. Customer Retention and Loyalty
So many times, people tend to get “shiny new thing” syndrome. Basically, we’re always looking for something new.
In our businesses, that means focusing heavily on acquiring new customers. And of course, that’s important! But all too often, we forget to prioritize nurturing our current customers.
And spoiler alert: those customers are a hidden gem for generating a TON of revenue and profit.
It’s so much easier to convince a happy customer to repurchase than it is to convince a brand new customer to initially convert. That’s why data focused on customer retention and loyalty are some of the most important KPIs.
Track your customer retention rates to see what steps you need to take to nurture your best customers. This kind of goes hand-in-hand with customer lifetime value—but don’t worry. We’ll get to that next.
4. Customer Lifetime Value
Now let’s talk about why customer lifetime value is one of the most important KPIs. This metric involves the total amount of revenue a single customer will generate over their “lifetime” with your business.
The higher your customer lifetime value, the better you’ll do in your business…and the more important it is to focus on nurturing relationships with your customers over time.
5. Marketing ROI
Marketing ROI is another of the most important KPIs for every business. When you’re spending money (or time!) marketing your business, you need to know if that effort is worth it.
ROI, or return on investment, is all about the revenue generated from a particular marketing initiative. You always want your ROI to be high…and if it’s not, it’s time to make some strategic shifts.
Choosing the most important KPIs for your business is pretty personal to your unique goals…but these five KPIs are really standard. For most business owners, conversion rate, bounce rate, customer retention KPIs, customer lifetime value, and ROI all matter.
Ready to take advantage of all that KPIs and metrics have to offer? Here are some more resources to get you started:
- The 5 Most Important Metrics to Measure Your Website’s Success
- Which Social Media Metrics Are Most Important To Track?
- How To Choose The Perfect KPI Metrics For Your Business
- 5 Email Marketing Metrics You Should Use to Track Campaign Success