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Six (6) KIPs most used by companies:
As we have already explained, determining KPIs will vary depending on the company, its current state and its objectives.
There is no point in determining KPIs based on those of another company, as it is unlikely that they will be in exactly the same situation in all aspects.
However, as every rule has its exception, we present you with some KPIs that you can very possibly adopt for your company.
These KPIs are the most widely used in companies due to their email lists uk practicality, effectiveness and achievement of results according to studies carried out by several Spanish business schools.
It is undoubtedly one of the most widely adopted KPIs by companies. It allows you to know the cost of acquiring a new customer. In this case, the costs associated with marketing campaigns are calculated versus the number of new customers acquired in the month. This way, you will understand how much you need to invest to convert more visitors into qualified leads (LQM).
Example:
If you spend $20,000 on marketing for the month's budget and you get 200 new leads, your customer acquisition cost is $200. In theory, if you plan to grow your customer base by 10,000 customers by the end of the year without changing anything other than the monetary amount, you would need to spend $1,000,000.
Customer Lifetime Value:
Once you understand how much it costs to acquire a customer, you need to know how much they are worth, and to do so you need to be very clear about the income each one represents for you, taking into account their “lifetime as a customer.”
“Customer lifetime” refers to the number of times a customer typically purchases the same product, service, or any other product or service you are offering.
Example:
The average customer usually buys a pair of socks from you 3 times a year (at a cost of $5 each); in addition, the second year they usually request the steam cleaning service (at a cost of $50).
The customer lifetime value is $65.
This KPI is often contrasted with the KPI mentioned above, the Cost of Customer Acquisition, to determine whether the business model is profitable.
Example:
If it costs you $500 to acquire a customer who consumes and/or spends $250 over their entire “lifetime,” there is a glaring problem with your business model that urgently needs to be addressed.
The most favorable calculation of the lifetime value of a potential customer for your company would be:
If the average customer spends $250 per transaction and makes 9 purchases per year over a five-year period, their “lifetime value” is $11,250, so it might be okay to spend $500 to acquire a customer for multiple purchases of a lower-value item.