Digital marketing KIPs to measure to improve your strategy
If you’re not tracking your marketing activities, how can you know if they’re working or not? It’s crucial to understand what KPIs are and what specific metrics does your business need. This is of great importance for executing a successful digital marketing strategy. When you align your business goals with clear KPIs, it will be easier to measure success and track records.
What are KPIs, and why do they matter?
KPIs are measurable values, quantifiable metrics that show the effectiveness of your marketing strategy. They represent a clear image of where your business is and where it should be going. KPIs can be related to all parts of your business, from marketing to sales and employee performance.
Digital marketing KPIs are directly related to different digital marketing strategies of your business. They are categorized into five main categories:
- Website traffic metrics;
- Lead generation;
- Paid advertising;
- Social Media;
Website traffic metrics
You should track your website traffic so that you can determine your website performance. The insights from the analytics will help you better optimize your website and turn your potential leads into customers.
Some of the most important website traffic KPIs to track are:
- Bounce rate: The percentage of visitors who leave after looking at only one page;
- Unique website visitors: The first-time visitors to your website for a defined period of time;
- Pages per session: The average number of pages a user visits when they go to your website;
- Average time on page: The average length of time a visitor spends on a page;
- Top landing pages: The first page your visitors land on when they come to your website;
- Top exit pages: Identify where your users exit the website;
- Goals completed: Purchases, leads, sign-ups;
- Conversion rate: The percentage of visitors who complete a goal on your website;
Which KPIs you’re going to measure depends on your audience, industry, and what your business goals are.
It’s essential to keep track of your leads as they are your potential customers. Monitor the cost-effectiveness of your lead generation channels to determine whether your lead generation activities pay off.
Some important lead generation KPIs to measure include:
- Monthly new leads: The number of new leads generated in the past month;
- Monthly qualified leads: The lead that can become a potential customer based on some criteria;
- Cost per conversion: How much it costs to obtain a real customer who will successfully convert;
- Cost per lead: The cost of acquiring a new lead;
- Cost per acquisition: the cumulative costs of a customer taking an action that leads to a conversion;
- Retention rate: The percentage of customers that continue paying for your products;
- Net promoter score: How likely is a client to recommend your products and services;
Search Engine Optimization (SEO)
It can be confusing to know which KPIs to track when it comes to SEO. We’ve gathered a list of some that we think are important and you should keep an eye on:
- ROI: The ultimate goal is to drive return on investment;
- Organic visibility: Track how your organic visibility changes;
- Organic sessions: Growth in organic impressions should increase organic sessions;
- Keyword rankings;
- Backlinks: A link created when one website links to another;
- Organic CTR: Better organic CTR means that more people are clicking on your listing on the SERPs;
- Page speed;
Running ads without tracking metrics can lead to quickly burning through your budget without producing any meaningful results. It’s important to set specific KPIs and track them while the ads are running to know if you’re getting results.
Paid advertising metrics to consider:
- Return on Ad Spend: The amount of revenue your business earns for each dollar it spends on advertising;
- Cost per conversion/cost per action: the amount you pay per a specified action on your ad;
- Website conversions: Number of completed pre-determined and desired actions on your website;
- Cost per click: The actual price you pay for each click in your pay-per-click (PPC) marketing campaigns;
- Earnings per click: Your conversion rate multiplied by your customer value;
- Cost per thousand impressions: The amount an advertiser pays a website per one thousand visitors who see its advertisements;
- Quality score and relevance score: Google's rating of the quality and relevance of both your keywords and PPC ads;
- Average rank position: The average of the rankings for the keywords you track for a day, week, or month;
- Frequency: the number of times a person sees your ad;
Many social media metrics could be relevant to your business in different ways. To effectively track how your social media strategy is meeting your business goals, set KPIs for reach, engagement, conversions, and customer satisfaction metrics:
- Impressions: The number of times your post was visible in someone’s timeline;
- Follower count: The number of followers your social channel has at a set time;
- Reach: How many people have seen a post since it went live.;
- Likes, comments, shares;
- Engagement rate: The level of interaction between followers and your content;
- Amplification rate: The rate of your followers who are sharing your content with their own followers;
- CTR, CPC, CPM;
- Net promoter score: This metric measures your followers’ brand loyalty;
How to choose the right KPIs to track?
When you define the KPIs, you should see your business goals and what metrics are relevant to your business strategy. Choosing the right KPIs is individual for every business; it’s not a one-size-fits-all decision.
When determining the metrics, you should start working backward. See what your goals and objectives are and align them with the suitable KPIs. Anyway, whatever KPIs you’re going to track, it’s essential to follow the SMART principle.
The KPIs you’re going to measure should be:
In other words, the KPI needs to provide a specific result that can be measured, identified, is relevant to your goals, and can be executed within a defined timeframe.
What KPIs not to track
With all available resources, tools, and tracking platforms, it’s easy to track every metric you want, from churn risk and website traffic to eCommerce or Social Media metrics. While it’s easy to track them, it’s even easier to track things that have no value for your business.
You might feel the urge to track social media followers or likes, but if you’re currently not doing a social media campaign, why waste your time in doing so? Focus on metrics that add value to your business and that are aligned with your current strategy and ongoing campaigns.
At the end of the day, tracking KPIs should provide a specific result that you can measure, act on and improve the current strategy and approach if needed.
Put into practice
An efficient way to practice measuring KPIs is using A/B testing. A/B testing is a process of showing two different variants of a specific thing and test which variant performs better. For example, test two different colors of a CTA button on your homepage to see whether the color affects the conversions. What is essential to consider when doing A/B testing is always test only one variable. That way, you’ll be sure where the changes in results come from.
When choosing the right tracking platform, you should see what information it provides. The free version of Google Analytics is the market leader and most commonly used analytic tool. Because of its functionality, Google Analytics is seen as the single source of truth for website traffic, engagement, and conversion data.
However, whichever platform you choose, the first thing to consider is your goal. Set your goals, and then set your KPIs. Measure the metrics along the journey and not just at the end of a campaign to ensure everything is working correctly.
We hope that this blog post will help you determine and implement important KPIs for your business with the ultimate goal of making a positive impact on your digital marketing strategy.