You probably already know that digital marketing KPIs (Key Performance Indicators) are an important part of measuring the performance of your digital marketing strategy.
But with so many options to choose from, and so many businesses undergoing digital transformation, how do you know where to start or what to change if you need to do something new?
Read on for a pragmatic outline of fundamental KPIs for digital marketing and how to pick them for your drives, campaigns, and communications.
What is a KPI?
The term KPI or Key Performance Index refers to a metric you use as a baseline to measure performance. They can be referred to in digital or non-digital contexts and are usually numbers that refer to any area of a business, including financial structure, productivity, or consumer behavior.
The right KPIs for digital marketing will structure your future strategy, so it’s best to start by determining what the best KPIs are for measuring digital performance from the get-go. You will need to determine which area of your business or target market you need to prioritize in order to choose the indicators that will be most effective.
First, you’ll want to take some steps to choose the right KPIs, then look deeper into your goals, and figure out how to fill the gaps.
Keep it clean
Make sure you choose goals that are clear—it’s about metrics, data, and using subjective, not objective, numbers to help you set goals and predict your future numbers. Have to do.
Keep it simple
Anyone in your organization should be able to see and understand what you’re doing with metrics. It’s not complicated math – it’s basic business and analytics, so it should be easy to communicate what you’re doing with the rest of the team.
Keep it action-oriented
There are many metrics you can focus on if you want – but the ones that matter most are usually tied to a specific process rather than just a value.
Timing counts.
Stick to a strict reporting and review schedule while establishing long-term, sustainable goals that align with your specific marketing goals.
Benefits of Using KPIs for Digital Marketing
KPIs are integral to digital marketing success as these specific metrics provide measurable values for key promotional objectives.
For example, you can set digital marketing KPIs based on return on investment (ROI), conversion rates, and customer lifetime value.
By using KPIs to track your digital marketing campaigns, you’ll give direction to your data, meaning you’ll gain a clear understanding of which metrics will best benefit your efforts. And skip extras as needed.
How should you pick the right KPIs for digital marketing?
Start with just a few key metrics that you know are strong indicators of the health of your business, such as conversion or visitor rates, then find out if you have an analytics tool to manage those metrics or if you have to calculate them themselves.
To help guide you to analytics success, here are four essential digital marketing KPIs you need to track.
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Traffic from organic search
This KPI will give you an accurate estimate of the percentage of website traffic you get through organic search.
It is conceivable that the traffic streaming to your site is created by organic searches from your search engine optimization (SEO) strategy. If your organic traffic is healthy, your content is performing well because of its value, relevance and engagement.
These KPIs will help you understand where your organic traffic is coming from and allow you to make changes to create more SEO-rich, relevant branded campaign content, such as:
- Number of lead conversions from organic search
- Number of customer conversions from organic search
- Percentage of traffic associated with branded keywords
- Percentage of traffic associated with non-branded keywords
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Website or landing page conversion rate
Whether you’ve created a dedicated (and awesome) landing page as part of your campaign or you’re directing prospects to specific pages on your website, it’s important to understand that each has a different conversion rate. How is the performance?
Getting a picture of your conversion rates and comparing these metrics to other pages on your site will help you identify potential weaknesses or leverage strengths. By doing so, you will be able to replicate this success elsewhere.
These metrics will also help you understand how exciting, user-friendly and value-oriented your content is to target customers:
- Bounce Rate
- Average session length
- Goal Conversion Rate: This is a metric designed to visualize when a prospect has successfully completed a specific campaign goal such as subscribing to a mailing list or sharing a piece of content. , contingent upon your objectives and targets
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Cost Per Click (CPC)
CPC is a valuable digital marketing KPI as it offers a clear pricing model that will help you make your campaigns more effective and cost-effective.
This KPI will help you see your average spend on various paid marketing activities, including pay-per-click (PPC), display ads, and retargeting.
The goal is to drive your CPC faster over time, resulting in more effective, efficient, and economical campaign activities.
In this field, there are two additional KPIs you should track:
- Cost Per Acquisition (CPA)
- Customer Lifetime Value (CLTV)
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Return on Marketing Investment (ROI)
As an information keen advertiser, you will grasp the importance of following the ROI for every one of your drives or activities. Your digital marketing ROI shows how effectively you’re spending your budget on a particular campaign. By diving into this sweeping measurement, you’ll have the option to let know if your investments are yielding substantial results.
For this situation, the higher the ROI, the better. A solid ROI means your campaign is cost-effective. If your ROI proves low, you’ll be able to drill down to your weakest areas and adjust accordingly.
Want to know more about Essential Digital Marketing KPIs to Track For Your Next Campaign? Contact us at support@sunnydayconsulting.com or check our website at www.sunnydayconsulting.com!
