You already know you need to measure ROI.
But what other agency KPI and metrics do you need to track to ensure that your agency’s performance is in tip-top shape? This guide looks at the six top choices you should measure today.
What are Agency KPIs?
Agency KPIs are a set of metrics that assess the health of your agency. These key performance indicators are the first numbers you should analyze to determine if your agency is financially successful or in danger of falling apart.
Why it’s essential to track them
Your marketing agency metrics help you identify leakage in your marketing and sales.
For example, a high churn rate might indicate unsatisfactory results or poor long-term relationships with clients. That’s not a great sign because it’s cheaper to keep an existing customer than to attract a new one. Failing to attract repeated purchases will hurt growth in the long run.
One way to track your advertising agency metrics is by using an automation-centric reporting tool like DashThis.
Here’s how it works:
- Create a dashboard from 40+ free templates
- Connect your marketing channels with DashThis
- Select your metrics in Preset Widgets (e.g., conversion rate)
DashThis will proceed to gather your data and turn them into graphs and charts automatically. Drag and drop them to your desired position.
Once you’re satisfied with your dashboard, invite all stakeholders to review it via email or a shareable URL link without leaving the platform.
Start your free 15-day trial to streamline your agency reporting workflow today.
6 Top Agency KPIs to Track
Here are the six top KPI agency metrics to gauge your performance, from measuring your net promoter score to the ROI of a marketing strategy.
1. Monthly recurring revenue
Monthly recurring revenue (MRR) is the predictable total revenue an agency can expect to receive every month.
Agencies with high MRR usually see a high closing ratio and work with clients on retainer. For example, a SaaS startup looking to increase its number of new customers might hire an SEO agency to write 10 product-led monthly posts to attract more qualified leads.
2. Net promoter score
Net promoter score (NPS) is a client satisfaction metric. It measures how likely clients will recommend your agency on a scale of 0 to 10.
NPS tracks word-of-mouth traffic numerically. Include your suggestion on improving the NPS for good measure. On DashThis, hover to the widget and click Add Note.
Click Save.
This lets stakeholders review the suggestion within the report.
3. Client lifetime value
Client lifetime value (also known as customer lifetime value or LTV for short) is the total amount of money a client is likely to spend on your agency during the lifetime of the business relationship.
Multiple ways to increase your LTV include assigning a dedicated project manager, setting up an affiliate or referrals program, and cross- and upselling relevant services.
4. Return on investment
Return on investment (ROI) is your marketing efforts' profit and revenue growth. It identifies your best-performing channel or marketing campaign, so that you can make the most of your marketing spend.
5. Retention rate
Retention rate is the percentage of repeated clients over a time frame. With customer acquisition costs (CAC) rising since 2018, agencies should prioritize customer retention to extend engagement and LTV.
Common ways to improve this metric include creating a smooth onboarding experience (i.e., sales team handing new clients over to the project team) and streamlining the reporting experience with DashThis.
DashThis is an automated reporting tool that gathers your data across multiple channels into one beautiful report. Here’s how it works:
- Choose a template
- Connect your marketing channels (e.g., LinkedIn)
- Pick your metrics in Preset Widget
DashThis will automatically pull all raw data from your selected channels and turn it into graphs and charts. Drag and drop and edit them as you desire.
Share it with stakeholders via an automatic email dispatch or shareable URL link for them to view in real-time.
Eliminate manual tasks in your reporting. Grab your free 15-day trial to automate your agency KPI reporting today.
6. Net profit
Net profit measures an agency’s profitability on each closed deal. Reduce operational expenses to improve your net profit margin. And raise your rates!
Automate Your Reporting with DashThis
These agency KPI and metrics track your business performance.
Without them, it’s impossible to know what’s going right (or wrong) in your agency.
A B2B SaaS agency torn between its social media channels might create the report below to analyze its ROI and other metrics. With these digestible charts conveying information at a glance, the agency will know how to allocate its budget accordingly.
Grab this digital marketing report template with your own data!
Reporting shouldn’t take a tremendous amount of time. With an automated reporting tool like DashThis, you can auto-generate dashboards and schedule email dispatches in the blink of an eye.
Grab your free 15-day trial to automate your agency KPI reporting today.
