Essential KPIs for Digital Marketing to Measure Marketing Success
One of the key points to succeeding in any area of life is to track your results. Without tracking your results, how would you be able to make improvements? In the field of digital marketing, this concept is more important than ever. It’s close to impossible for a business to grow their marketing strategy without closely analysing results and optimizing its approach.
There’s a technical and common digital marketing agency term that you’ll be hearing a lot in this article. Key performance indicators, more commonly known as KPI’s are methods that help you measure the results of your digital marketing strategies on a daily basis, optimizing them to bring you more leads and sales.
Today we’ll be taking a closer look at what KPI’s are, why you need them, and how to select the perfect KPI’s for optimal success with your digital marketing strategy.
Before we begin, it’s important to note to you that this article has been written by the team at your number-one digital marketing agency in Australia. The digital marketing team at Enhance Marketing has put their many years of experience and knowledge together, all concisely down into the article that you read now. If you want to learn more about what our team can do for you, contact us now.
What Is A KPI In Digital Marketing
First of all, what is a key performance indicator when it comes to digital marketing? In simple terms, a KPI is any measurable indicator or metric that allows you to assess specific facets of your business’s performance and marketing efforts.
Now, we know what a KPI is in general, but what about KPI’s in digital marketing specifically? Digital marketing KPI’s are metrics that are only associated with your digital marketing strategy. Exactly the same concept, just more focused on a single area now.
The general digital marketing KPI’s which are essential to know, and track include: KPIs for acquiring leads, KPIs related to raising brand recognition, KPIs for sales expansion, and KPIs pertaining to search engine optimization (SEO).
These KPI’s are easily accessible through most of your digital marketing tools and platforms such as social media channels, web analytic tools, and PPC tools.
Why Tracking KPI Is Crucial
Tracking your digital marketing KPI’s will help you analyse successes and failures with your strategy, helping you optimize it in order to attract more customers.
By very closely analysing digital marketing KPI’s you can get an exact idea of where your investment is going, how it’s being used, and how effective it is in bringing you customers. Once you have these three factors (with the help of your KPI’s) you can easily optimize your strategy; focusing on the areas which are most effective and profitable for you.
By tracking KPI’s and actively optimizing your strategy you will also avoid a lot of unnecessary cost, making the most use of the money which you’ve invested into each sector of your marketing strategy.
Any good digital marketing agency will know the importance of tracking KPI’s when it comes down to increasing sales and lowering costs.
Essential KPI’s To Measure For Success
To achieve maximum growth and effectiveness within your marketing strategy, we suggest that you keep track of all the following KPI’s.
Remember that if you don’t want to spend your time stuck in the details of marketing, Enhance Marketing can help you out. Our digital marketing agency in Australia and around the rest of the world has had many years of experience implementing and improving different digital marketing strategies. Contact us to see how we can help you grow your business!
General KPI’s Which Are MUST Tracks
Customer Lifetime Value (CLV)
As evident in the name, the CLV or customer lifetime value refers to the “full lifetime” of how long a person is your customer for. The main goal is to calculate the total amount of revenue a single customer generates you over their “lifetime of buying” from you.
Typically, CLV’s have no common length and can range from a matter of days to years and decades. Obviously here, the longer the better as a lifelong customer means guaranteed revenue for your business.
Customer Acquisition Cost
One step prior to CLV is the customer acquisition cost, which measures the amount of investment required to secure a customer. This can be tracked looking at both money and time investment, as well as the amount of material and resources used. The key is to consider every little thing that has gone into gaining that customer, and asses whether it’s efficient or not.
Return On Investment (ROI)
A common KPI which you may have heard of before is the return on investment, or ROI. Return on investment can be easily explained using a simple formula with the KPI’s which we’ve already looked at:
ROI = (revenue generated – customer acquisition cost) / customer acquisition cost x100%
Even if you don’t have a firm grip on the above formula yet, all you need to know is that ROI is very important as it shows you whether you’ve made a profitable return on your efforts, or whether you’ve made a loss.
Conversion Rates
Conversion rates are the essential KPI for measuring the overall workability and success of your strategy. Your conversion rate shows you the percentage of visitors which have turned or been “converted” into customers. This could be applied to each marketing platform separately or to your website as a whole to see overall performance.
SEO KPI’s (Search Engine Optimization)
Search Traffic
Google and other search engines provide a number of KPI’s to help you improve search traffic. The common and most useful search traffic KPI’s are the total number of visits. Organic vs. paid traffic, top scoring pages, and a number of other KPI’s which give you deeper information in regard to how well your search traffic is.
Keyword Rankings
Keyword rankings are simple. Keyword ranking KPI’s indicate where your website ranks on a search result for a term which is being used in your SEO strategy. Tracking keyword rankings will help you identify which keywords need extra efforts for higher ranks, as well as your overall ranking positions on different pages – which could be used to explain a boost/lack in visitors.
Backlinks
Backlinks show you the effect on your website ranking and traffic based on the amount of links you have from other sites. The more backlinks, the better return on your SEO efforts.
Domain And Page Authority
Domain authority shows how credible or how much “authority” the search engine gives to you from analysing your content. Page authority is a smaller version of this, with a page-by-page ranking basis. The key to increasing these KPI’s is to post relevant and useful content for your industry which genuinely helps users out.
Social Media KPI’s
Engagement Rate
A very tangible KPI which almost all of us are familiar with on social media is the number of likes, comments, and shares. In simpler words, these KPI’s are the key indicators of how much engagement there is with your content. Higher quality and more useful content will naturally gain you higher engagement, making you a favourite of the social media algorithms.
Follower Growth Rate
This KPI measures how much your following on a social media platform grows over a period of time. Optimizing this KPI is essential to creating opportunities for potential customers.
Conversions
Like any other method, it’s crucial to track how much of your audience on social media actually converted to purchasing from you. This KPI will determine the efficiency and workability of your social media presence, and whether it’s the right place for your business to be or not.
PPC KPI’s (Pay-Per-Click Advertising)
Cost Per Click (CPC)
The cost per click KPI quite literally shows the amount of cost made per click on your paid advertisement. This helps you to figure out how big or small of a budget you need to attract customers through paid ads – especially at a larger scale.
Click Through Rate (CTR)
Good CTR’s bring the benefit of increased traffic as well lowered CPC in many ad campaigns, making them a crucial KPI to keep track of.
Quality Score
The quality score of an ad shows how legitimate it is in attracting customers, based on the CTR of the ad. The higher the quality score, the more chance of paying less CPC’s.
Email Marketing KPI’s
Signup Rate
The signup rate is simple. This KPI shows you the mount of people who signed up to your email list from your website or another space.
Open Rate
After getting a signup the next important step is getting your emails opened, which is shown by the open rate. The open rate KPI shows the percentage of subscribers who opened your email, showing you the attractiveness of your subject line and how it can be improved.
Click Through Rate (CTR)
Similar to other strategies, you can promote products and services in your emails, including a CTA to get a sale on the spot. The CTR will show you what percentage of the viewers were converted through this setup.
Bounce Rate & Unsubscribe Rates
The bounce rate will show the percentage of people who didn’t actually end up receiving your email, pointing out potential server issues for either the sender or receiver.
The unsubscribe rate, as evident in the name shows the rate of people who decided to unsubscribe from your email list. This KPI will help you adjust emails in order to make customers want more content rather than wanting to get rid of you all over!
A KPI Driven Digital Marketing Agency In Australia
Before you finish reading this article, we want to bring to your attention the application of everything mentioned today.
With close analysis of key KPI’s you can achieve unbelievably efficient growth in your marketing strategy, and therefore your business. That’s exactly what we do at Enhance Marketing.
Our digital marketing agency is dedicated to making data driven decisions based on KPI’s which are endlessly being asses, analysed, and optimized for maximum marketing efficiency.
See how we can use this strategy to make your business grow like never before. Contact us now to begin with a complementary business analysis and a free proposal!
