4 Relevant KPIs for Highly Regulated Industries
This is for all of the marketing associates trying to convince leadership and communicate the importance of marketing in highly regulated industries.
When advertising in highly regulated industries, such as healthcare, finance, or legal, executives care about KPIs that show how their marketing efforts contribute to the company’s bottom line, as well as how they comply with the laws and regulations of their industry.
Some of the KPIs that leadership care about are:
Return on ad spend (ROAS): This is the ratio of revenue generated by an ad campaign to the cost of running it. It measures the profitability and efficiency of an ad campaign. A higher ROAS means that the campaign is generating more revenue than it is spending. ROAS is one of the most important KPIs for c-suite executives because it shows if their advertising investments are paying off or not.
Customer acquisition cost (CAC): This is the average amount of money spent to acquire a new customer. It includes the cost of advertising, sales, and other marketing activities. It measures how much it costs to grow the customer base and revenue. A lower CAC means that the company is spending less to acquire more customers. CAC is an important KPI for c-suite executives because it shows how efficient and effective their marketing strategies are in attracting new customers.
Customer lifetime value (CLV): This is the estimated amount of money that a customer will spend with a company over their entire relationship. It includes the revenue from purchases, referrals, and retention. It measures how valuable and loyal a customer is to the company. A higher CLV means that the customer is spending more and staying longer with the company. CLV is an important KPI for c-suite executives because it shows how much potential revenue and profit each customer can bring to the company.
Compliance rate: This is the percentage of ad campaigns that follow the laws and regulations of the industry and jurisdiction. It measures how well the company adheres to the ethical and legal standards of its industry. A higher compliance rate means that the company is avoiding legal risks and fines, as well as maintaining its reputation and trust with its customers and stakeholders. Compliance rate is an important KPI for c-suite executives because it shows how responsible and accountable their marketing team is in conducting their advertising activities.
Communicate to your leadership team that marketing is incredibly valuable to their bottom line, and you can show it.
With these KPIs you will valuate the performance and impact of your marketing efforts on their business goals and objectives.