Sales & Marketing KPIs for SMEs
Several are shared KPIs that the Sales and Marketing Head shares with the IT Head, HR Head, Ops Head, and Finance Head.
Market share provides a measure of the relative share a business has in a given market compared to its competitors.
Relative Market Share (%) = organization's market share / largest competitor's market share.
Market Growth Rate
Market growth rate is a measure of the extent at which the market a company operates in is growing. This provides an insight into the size of the opportunity a company might have.
Market Growth Rate (%) = total sales in the market for this year / total sales in the market for last year
Brand equity is a measure of the value a brand adds to an organisation's products or services. Brand equity can result in price premiums or customer loyalty. This is conducted through face-to-face or telephone interviews, & is typically expensive.
Cost per Lead
Cost per lead is a measure of the costs for generating new customers.
Average cost per lead = total money spent on marketing campaign / total leads generated
Conversion rate is a measure of the success rate of turning customer leads or potential customers into actual customers.
Conversion Rate = (Number of Goal Achievements / Visitors) x 100
Search Engine Rankings
Search engine rankings measures the ranking a company's website achieves (in search engines such as Google) for specific relevant keyword searches.
Click-through rate measures the amount of people who actually visit a company's website after key word searches (see also Search Engine Rankings) or in response to an advert.
Page views measures the total number of web pages viewed on the website and so is a general measure of how extensively the website is used. Average page views is one way of measuring visit quality.
Bounce rate essentially represents a measure of website attractiveness. It measures the percentage of initial visitors to a website who "bounce' away to a different site, rather than continue on to other pages within the same site.
Customer Online Engagement
Customer online engagement Level measures the level of engagement of customers with each other, a company or a specific brand, measured primarily by online interaction.
It takes into account individual metrics such as duration of visits, frequency of visit, depth of visit, click-through rate as well as sales, downloads, recommendations, reviews, comments, etc.
Online Share of Voice
Online share of voice (OSOV) measures the relative share of online mentions of a brand (company or product) - especially in Social Media forums - relative to competitors.
OSOV = (Number of mentions for your brand / Number of mentions for your brand and all your competitor brands) x 100
Social Networking Footprint
Social networking footprint is data collected through online tools that measure how consumers interact with a brand or a company on social media sites.
Corporate reputation is an indicator of the reputation a company has in the eyes of its customers, potential customers or the general public. This is measured through pen & paper / telephone / interview surveys and is typically expensive to conduct.
First Contact Resolution
First contact resolution (FCR) is a measure of the effectiveness with which a company is resolving customer queries. It basically measures the rate at which customer queries are resolved at first contact.
FCR Call Statistics = (Total number of queries resolved) / (Total number of calls) x 100
Website non-availability measures the time that a website is not available. Downtime is calculated for individual URLs but multi-step processes such as shopping with card payment or user registrations can be identified as 'non-available' if one of the steps is not functioning.
Software automatically verifies the server status, downloads the full HTML content and measures the response time of the specified website.
Sales Volume Projection Forecast Accuracy
Sales volume projection measures the projected or expected volumes of sales over a future period. It is basically a measure of the order book a company has plus any sales a company is sure to secure.
Direct Product Profitability
Direct Product Profitability (DPP) measures profitability by product & therefore provides insights into the differing profitability levels of the products or services a company offers.
DPP = unit sales volume x the profit margin of the product
Revenue per User
Revenue per user measures a company's profitability on a per-user basis. You simply take overall revenue and divide it the total number of users or customers. Note that customers are defined as ACTIVE.
RPU = Total Revenue / Total Users (Customers)
Percentage Revenue per Major Customer
Percentage revenue by major customer measures a company's profitability on a per-customer basis to establish how important individual customers are relative to the overall customer based.
Sales per Channel
Sales by channel is an indicator that breaks sales down by the channel through which the sales were generated. This provides an insight into the effectiveness of different channels such as direct sales, shops, online, etc.
Brand Persuasion Score
Brand persuasion score measures the percentage of customers who say that the strength of the brand was a major influence of the purchasing decision. The measure is usually collected through face-to-face or telephone surveys, & is expensive.
Quotation Conversion Rate
Quotation conversion rate measures the success rate (percentage) a company achieves of converting quotes for business into actual orders.
Quotation Conversion Rate = (Number of Successful Quotes / Number of Quotes submitted) x 100
Up-selling Success Rate
Up-selling success rate measures the percentage of upselling attempts or opportunities that are successful and sales are made.
Up-selling success rate = (Number of Successful Up-Sales / Number of Upselling Attempts (or Opportunities)) x 100
Cross-Selling Success Rate
Cross-Selling Success Rate measures the percentage of upselling attempts or opportunities that are successful and sales are made.
Cross-Selling Success Rate = (Number of Successful Cross-Sales / Number of Cross-Selling Attempts (or Opportunities)) x 100
Cost to Serve
Cost to serve (by customer or segment) is a measure that helps to understand the profitability of a customer/segment account by assigning costs of serving this customer based on the level of activity and overhead costs incurred by this customer.
Acquisition Retention Spending Ratio
Acquisition retention spending ratio provides companies with an insight into the amount they spend to acquire new customers compared to the amount they spend to retain. In most industries it is significantly more expensive to acquire new customers.
Acquisition Retention Spending Ratio = Spending to acquire new customers / spending to retain existing customers