Every phase of launching a new product has critical metrics to be mindful of to achieve a product launch success. Our last article explored the necessity of measuring key performance indicators (KPIs) during the launch process and covered the pre-launch phase. In this article, we’ll continue with the launch phase, which is just as important as the pre-launch phase.
So let’s get right into the key performance indicators for the Launch phase.
Generating leads for product launch success
Lead generation is provoking consumer interest in a product to convert that interest into a sale.
The same reasoning holds for product launches.
You want to generate as many leads as possible by using various sales and marketing strategies.
You can use those leads as a key performance indicator and establish a target to “create X number of leads” over time.
Of course, not all leads turn into clients; some are merely individuals eager to learn more about your offer.
Although there are many kinds of leads, they can be divided into three groups.
- Information Qualified Lead – An IQL has just started looking into a solution to their problem.
- Marketing Qualified Lead – A MQL is one step ahead of an IQL and actively seeks answers to their problems.
- Sales Qualified Lead – A SRL is a bottom-of-the-funnel lead who has been declared ready for the next stage of the sales process.
The number of leads you turn into paying customers can be another metric called conversion rate.
Let’s have a look at it.
Conversion rate for product launch success
Tracking conversion rates is a critical measure for any product launch. Understanding what percentage of your users complete the objectives that drive your business allows you to evaluate the success of your launch.
Conversion rates are calculated by dividing the total number of conversion-tracked interactions over the same period by the number of conversions.
Whether those leads come from our website, social media, marketing efforts, or elsewhere, our conversion rate is the percentage of them that become customers.
For example, if you had 50 conversions out of 1,000 interactions, your conversion rate would be 5%.
Click-through rate (CTR) for product launch success
The click-through rate is the proportion of users who click on a given link to the total number of users that view a page, email, or advertisement. It is often used to measure the efficacy of email marketing and the success of an online advertising campaign for a specific website. Email marketing can be a vital part of any product launch marketing strategy. It lets you notify your audience about a launch, new product features, upgrades, and other activities.
For example, if you had 5 clicks and 100 impressions, your CTR would be 5%.
Costs for product launch success
Finances are critical when launching a brand new product to the market and should be adequately monitored. The company must be financially viable to introduce a new product and improve it over time.
Product marketing activities, salaries, customer acquisition costs, and a variety of other factors can affect the budget.
Keeping track of costs can be critical to the success of your launch and company.
Product launch success is critical for every firm. Regardless of the size or industry of your company, your new product must generate enthusiasm, attract customers, and generate revenue. To create a successful product launch, you must first identify the right kpis for your launch.
So far, we’ve discussed product launch KPis in the pre-launch and launch phases, and in the following article, we’ll go through the post-launch period in detail.
So, if you want to hear more from an innovation consultant who develops and implements strategies to reduce the risk of launch failure, stay tuned till next week.