Key performance indicators (KPIs) help you understand if your business is on track. Understanding these numbers and keeping an eye on them regularly will help you gauge the success of your marketing agency. If you have a feeling your marketing agency isn’t doing a great job, or if you just simply want to understand where your business stands, take a look at these 5 KPIs: unique lead count, unique cost per lead, the closing rate of those leads, lifetime value of your customers, and reputation.
1. Unique Lead Count
The first KPI that is important for you to track is your unique lead count. A unique lead is a person with no prior history of engagement with your business. This underscores the core objective of working with a marketing agency: to expand your brand's reach, attract new audiences, and turn those audiences into customers. Crucial to understanding your unique lead count is having software in place that can differentiate between new and existing leads. This entails cross-referencing phone numbers and email addresses in your current customer lead database to determine if an inbound lead represents a new opportunity for your business.
2. Cost per Unique Lead
Now that you know how many unique leads you're bringing in, the next step is to figure out how much each is costing you. When tracking your cost per unique lead, you must consider all costs. Often when you're working with a marketing agency, they will identify a cost per lead based on what they're seeing through the paid advertising platforms, like Facebook ads and Google ads. However, you need to make sure that, on top of that cost, you're also considering the cost of employing the marketing agency to run those services for you. For example, if you paid a marketing agency $3,000 to run services for you for that month and then you spent another $3,000 in ad spending, you actually spent a total of $6,000 for your unique leads.
3. Closing Rate of Leads
The third KPI that you should be monitoring is the closing rate of your leads. Lawnline Marketing suggests that your conversion rate should be a minimum of 40% to 50%. If you're seeing conversion rates that are higher than 60%, it's typically for two reasons: you work off of referrals, or your price points aren't where they need to be. Referrals are going to convert at a much higher rate than internet leads, and people who have cheaper price points tend to close at higher rates. You should feel confident when you're in that sweet spot of 40% to 50% for internet-based leads. If the percentage is significantly lower or higher than this range, you should have a conversation with your marketing agency to see if anything needs to be changed.
4. Lifetime Value for Customers
The lifetime value of your customers is another number that is important to track in order to understand if your marketing agency is doing a good job. This KPI is underrated in the lawn and landscape industry but is a key metric that you should focus on.
Upselling is an easy way to increase the lifetime value of your customers. The services that you're upselling are typically your most profitable services, so your profit margin is higher compared to the standard services that your clients are buying. There are a ton of upselling opportunities that you shouldn't be missing out on, so ask your marketing agency how they're doing this for your business. If they don't have an answer, it may be time for a new agency.
5. Reputation
Lastly, your business's reputation significantly influences various aspects of its success. It directly impacts your SEO rankings and your ability to attract and retain customers. Therefore, prioritizing the management of your company's reputation is crucial. One key aspect to focus on is reviews and online testimonials. If your marketing agency is making an ongoing effort to build reviews and isn't attempting it sporadically throughout the year, you're in a good spot. A valuable KPI for your scorecard would be the number of online reviews built each month, as this metric profoundly impacts various facets of your online marketing strategy.
The right marketing agency can lead you to success. Give Lawnline Marketing a call!
These KPIs are your top-level, executive KPIs. If those 5 KPIs look good to you, then it's likely your marketing agency is doing a good job. If it's not looking good to you, you don't need to necessarily look into the details of what's making those KPIs not look great, you probably just have the wrong marketing agency.
Lawnline Marketing tracks these 5 KPIs and more to ensure that your return on investment (ROI) is where it needs to be. Ready to get started? Contact Lawnline Marketing today by calling (813) 944-3400!
