Think of KPI’s like a car journey from say London to Leicester. Here the aim is to reach Leicester by 3pm.
Once you have begun your journey you will need directions from your navigation system to understand where you are and which route is best to take.
In this case, useful KPI’s might include, GPS location data, average speed, mileage, fuel levels, estimated arrival time etc.
These metrics or KPIs will allow you to understand whether you are on track and will also help you make better driving decisions should you take this trip again.
Marketing is just the same. When you promote a new marketing campaign we need to ensure we are measuring key factors to decide whether our marketing efforts have been a success or failure. Without these key performance indicators, it can be challenging to fully grasp the performing areas and where foreseeable improvements are made.
KPI’s in digital marketing
KPI’s in digital marketing are all the metrics that help to determine whether or not your marketing strategies are successful in goal attainment. Whether your goal is to drive traffic to your website, increase conversions or generate leads, you will measure and analyse different areas of your marketing efforts to learn how well they are performing.
Performance metrics or KPI’s are important as they help you to decide which areas of your marketing campaigns need further investment. These factors are essential in observing customer interaction with your brand and business.
There are many KPI’s you can measure, but we’ve put together our top 6:
- Follower growth
- Conversion Rate
- Website visitors
- Social media engagement
- Organic traffic
1. Return on Investment (ROI)
The ROI in marketing describes how much revenue a marketing campaign generates when compared with the total marketing costs.
2. Follower growth
This indicator is important when using social media as a marketing option. It shows how successful your social media campaigns are by increasing the number of followers. Therefore, you are able to reach new people and further increase brand awareness.
3. Conversion Rate
The conversion rate is the percentage of visitors who visit your website and have completed the desired action. It could be anything from purchasing a product to filling in an enquiry form. This KPI is particularly helpful as it allows you to see and monitor the performance of your leads.
4. Website Visitors
In marketing, the main objective for any campaign is to attract your customers. One of the best ways to reach this objective is through your website.
Website visitors are an important KPI to measure as it would give you a true indication of how successful your marketing campaigns are doing. For example, you can see how many customers are visiting your website through social media and which pages are performing the best.
5. Social Media Engagement
Understanding how well your social media campaigns are performing is key. Tracking engagement gives you a clear indicator as to how many people are liking, sharing, commenting or mentioning your content. Businesses with an increase in social media engagement are more likely to have their content shared to followers.
6. Organic traffic
SEO plays a huge role in digital marketing and demonstrates how well your SEO campaigns are performing. An example of a successful web analytic service such as Google Analytics produces quantifiable ranking on search engines organically while measuring the performance of keywords used in the content.
Image credit Bing Digital