How would you know whether or not your marketing tactics are effective unless you track them? And that is when KPIs come into the picture! To maintain scaling, KPIs let you evaluate the key metrics that matter so much to your company.
Let’s take a deeper look at measuring your online marketing KPI.
Begin with a digital marketing performance report which already includes all the most critical KPIs for most online marketing initiatives.
What is Digital Marketing KPI?
KPI (key performance indicator) is a measurable metric that you could use to assess your company’s success. KPIs may measure anything from staff productivity to revenue.
KPIs in digital marketing is measured directly related to your online marketing plans, such as SEO, lead generation, brand awareness, and sales growth. Your digital sales income, web traffic, and SERPs are examples of measurable data which you may use to improve your digital marketing efforts.
PPC services like Google Ads (AdWords before) or Bing Ads, website analytics platforms like Google Analytics, and lead generation tools, promotional strategies, and even your salespersons can contribute to your KPIs.
Why should you measure your KPIs?
You should track your KPIs to see what’s performing and what’s not. If you generate income but don’t know where it came from or how your marketing approach contributed, you’ll never understand where to reinvest. For example, a particular source of website visitors may provide practically all of your potential leads and revenues while other promotional strategies generate none.
With tools like Google Analytics and Google Ads, it’s easily measurable where your clients come from, cost per lead, what it really costs to gain a customer, and more. With this insight, you may eliminate ineffective areas of your campaign and improve the successful one.
How to Select the Appropriate KPIs to Track?
It’s not a “one size fits all” option when it comes to online marketing KPIs. The greatest KPIs to monitor for one business aren’t always the same for others.
To determine the ideal KPIs for your company, start with your objectives and move backward. There was no need to measure email campaign KPIs if the lead follow-up is solely achieved over the phone or in person.
Whatever KPIs are most important to you to measure, they must fit the SMART model. The KPIs you should track are:
To look at it another way, the KPI must deliver a particular outcome that online marketers can assess, that can be defined when achieved, that is related to your objectives, and it can be assigned a date or timeline.
What to avoid tracking?
Analyzing digital marketing KPIs including website visitors, e-commerce analytics, retention, and organic search is basic. It’s easy to gather critical indicators, but it’s also easy to monitor useless data, wasting effort and time.
When choosing KPIs, examine whether the data will help you increase your end result. A vanity metric is one you can’t act on or impact; hence it’s not worth measuring.
Likes on Facebook or followers on Twitter could be tempting to track, but if you are not actively seeking more followers or likes, why bother? It’s a useless KPI.
The most Significant KPIs for Digital Marketing
While the particular set of KPIs you measure depends on your organization and the platforms you’re aiming with your online marketing efforts, most businesses that conduct business online fall into one of three categories. These are some of them:
- SEO (search engine optimization)
- SMM (social media marketing)
- PSM (paid search marketing)
- Content Marketing
- Email Marketing
Most businesses will indeed benefit from using some other general marketing KPIs and metrics.
KPIs for General Marketing
- CLV (customer lifetime value)
A client’s lifetime value is the amount of money a customer usually produces over time. Based on your average customer retention and back-end service or product offerings, this might take several days, several weeks, months, or even years.
- CAC (customer acquisition cost)
The acquisition cost is the amount of money needed to acquire a new client. Marketing, telemarketing or meetings, or anything else that goes towards your conversion and searching process is all examples of this.
- ROI (return on investment)
The ROI is a result of the first two KPIs. When you evaluate your client acquisition cost to profits earned, it informs you how much revenue you make.
- Conversion Rate
What percentages of users convert to leads and lead to clients are known as the conversion rate. If you wish to measure each source independently, this is indeed a generic marketing KPI that may also refer to some of the other areas. You might also keep track of how many leads or conversions you’ve received.
KPIs for SEO (search engine optimization)
- Search Engine Traffic
Total visitors, unique users, organic search, site visitors, web traffic, page views per visit, popular pages, and some other KPIs connected to traffic arriving at your website from Google or other search engines are all included in search traffic metrics.
SEO relies heavily on backlinks. When connected with search engine traffic, this KPI allows you to observe how many other websites hyperlink to yours and how such links affect your ranks and traffic.
- Rankings of Keywords
This KPI would show you where your website ranks for the keywords that are most important to you. You may observe the change in search ranking over time to discover what is or is not working with your SEO strategies.
- Bounce Rate
A bounce occurs when a visitor arrives at a page on the website and instantly leaves. By analyzing this KPI, you can enhance your web pages and encourage users to remain longer on your website.
- Page and Domain Authority
Your site’s domain authority is an indicator of how much importance the search engines award it. In other terms, how valuable your information is to them. On a page-by-page basis, page authority is just the same sort of evaluation.
KPIs for Social Media Marketing
- Likes, Shares, and Comments
The heart of social media platforms is likes, shares, and comments. These KPIs can show you how much publicity you’re receiving on social networking sites if that’s one of the platforms you’re targeting.
- Followers Increase Rate
To produce new leads and clients, you’ll need a continuous flow of new users. This KPI will track the rate of growth over time.
- Social Media Traffic
The very same metrics apply to social media users as they do to SEO visitors (unique users, visits, source of traffic, and so on), but for social media sites specifically. You might wish to keep track of both general KPIs and detailed metrics for each platform.
- Social Media Conversions
You may also want to measure total conversions and the performance of each platform, just as you would with social media visitors.
KPIs for Paid Search Marketing
- CPC (cost-per-click)
CPC is among the most important KPIs to measure if you’re utilizing sponsored advertising.
- CTR (click-through-rate)
Whenever you pay for traffic, another important KPI to monitor is CTR. A higher CTR not only increases visitors, but it may also cut your CPC for some advertising networks.
- Quality Score
The quality score of an ad is one of the parameters used by ad networks to calculate your CPC. A higher-quality score is associated with a more appropriate ad with a higher CTR, resulting in reduced CPCs.
KPIs for Email Marketing
- Signup Rate
Whether you provide a newsletter, case study, white paper, or other benefits, the signup ratio for email marketing is the ratio of website visitors that join your email list.
- Open Rate
The open frequency compared to how many individuals on your mailing lists actually open your emails. This KPI is an excellent measure of the effectiveness of your email template.
- Click-Through Rate (CTR)
You may analyze how many users click on links in your mail to assess engagement whether you add links to pages of the website, service or products, and anything else.
- Bounce Rate
The bounce rate of emails is not the same as that of a website. Undeliverable mail “bounces” return to the sender as an email bounce.
Each e-mail you send your clients is likely to include an unsubscribe link, allowing them to opt-out from your mailing list. This KPI allows you to measure the number of unsubscribing to evaluate which sorts of communications are the most successful and which ones result in the most unsubscribes.
Tracking the different digital marketing KPIs we’ve mentioned in this article will provide your marketing team with all of the data they need to make accurate marketing decisions. However, keeping this information updated requires a lot of effort, especially if you are promoting across many platforms.
Having 11 years of experience as a digital marketer and marketing strategist. SEO, SMM, PPC, performance marketing, marketing automation, and growth hacking are some of my specialties. I provide digital marketing consultancy services all around the world.