Digital marketing Key Performance Indicators or KPIs are goal quantifiers that help you track and measure your digital campaign success. KPI is a measurable value used to evaluate the success of marketing strategies.
General marketing KPIs include Cost Per Lead (CPL), Cost per Acquisition (CPA), marketing qualified leads for your business, and website visits per page.It is crucial to know what to measure in your digital marketing strategy using KPI.
What to measure?
Measuring is always dependent on the goals you select for your organization. Mostly they will be leads and sales, but if it is a start-up company, you can measure leads along with the reach and engagement.
A leading indicator is a significant aspect of the KPI with the leading indicator; you will know the results of your time and efforts invested.
How to measure?
Measuring a KPI result depends on various factors of what you choose to measure. For example, let’s see the calculation of the retention rate.
The retention rate shows you the number of clients using your products over and over a while. The monitoring of the retention rate shows you how well your customers are engaged with you.
Here is a formula to calculate a retention rate: RR=((CE-CN)/CS) X 100
Where CE= customers at the end of the period, CN=new customers during a period, and CS= customers at the start of the period.
How to choose the best and effective Key Performance Indicators?
The following tips help you choose the best and effective KPIs for digital marketing strategies.
- First of all, ensure your KPI is related to your business goal.
- Your KPI should address the progress of your strategies; it should mention the reason why it is successful and why it is not.
- Generally, there are different types of stages in a company, choose KPIs that suits your stage, and addresses your concerns.
- Choose only a few essential Key Performance Indicators (KPI) rather than failing in managing dozens of them.
- Monitor and choose KPIs that best suits your business niche.
5 Effective Digital Marketing KPIs :
Most of the digital marketing companies in Hyderabad rely on KPIs to make decisions about any organization. This gives an overview of your digital marketing strategies’ performance. KPIs are essential to handle and make decisions over any digital marketing strategy.
Here are five effective digital marketing KPIs:
- Traffic to lead ratio
- Popular channels or pages
- Number of visitors per channel
- Source of traffic
- Customer engagement
Traffic to lead ratio:
This KPI helps you measure how effective your website in creating leads. Here you can calculate your leads ratio by comparing with the number of traffic visited the site. Suppose your website generates a single lead with 1000 visitors per month than its time to optimize your content and lead generation strategies.
Note your current ratio, and monitor after every single change made to your site throughout your campaign.
Popular channels or Pages:
Measure how long visitors are spending their time on a particular page or channel on your website. This helps you to know what kind of content is attracting them frequently to your site. Identifying these pages and channels gives an idea of where your site needs improvement.
The number of visitors per channel:
Tracking visitors for each channel such as paid channels, social media channels, email marketing channel, and referral channels helps you track your campaign results. The results acquired help you to further improve your campaigns.
- Increase your paid traffic by creating ads with creative images and convincing content.
- Improve your organic traffic by SEO tactics such as interlinking website pages and by providing user intent content.
- Increase your social media traffic by improving your followers with more new posts.
Source of traffic:
Knowing the line, how visitors reach you, ensures which website marketing strategy is working for you. The visitors’ approach from different sources ensures all your digital tactics are optimized well.
All the hard work and dedication you put to attract traffic to your site improves your traffic. But KPIs are the only source that ensures your hard work and dedication paid you well. The traffic source is an important aspect that differentiates results from the overall web traffic.
Figuring out which content page is attracting more leads and engagements to your website; it helps you to focus on such content to attract more and more participation. If your social media engagements are more than your website, then use tactics and optimize your web pages to draw them to your site pages.
With the effect of COVID-19, there are considerable changes in the digital landscape. Most of the digital marketing strategies are changed to recover the performance of online businesses. Choose effective KPIs to improve the performance of your new digital marketing strategies.