Digital marketing is the way to generate awareness and make a lasting impact for businesses in the modern world. And marketing is a specialized domain that needs constant monitoring to analyse the effectiveness and the result it generates.
What are Digital Marketing KPIs?
Your marketing team plans and executes several campaigns after investing a substantial amount of time and money. It’s also important that you track all your company’s marketing efforts to ensure it doesn’t go as waste. Moreover, if you don’t track your digital marketing activities, how will you know whether they’re working the way you have planned? This is where key performance indicators come into the picture.
KPIs are numerical marketing metrics of measurable value that let marketers and business owners evaluate their performance across various marketing channels.
The marketing metrics is used to measure your organization’s progress in line with pre-defined goals, and you can also gauge several aspects of your business performance. In other words, marketing KPIs are tools that let you set benchmarks for success and track your company’s or team’s performance against these benchmarks. You use these tools to measure the effectiveness of your digital marketing campaigns, and also take measures with data-driven strategies to improve the same.
Use the following KPIs to gather data from your marketing activities that convert them into numbers for adjusting your campaigns accordingly:
Customer acquisition cost
This includes the total sales and marketing costs involved to acquire new customers, including program costs, salaries, commission, IT costs, and overheads to convert a lead into a customer. Customer acquisition cost is calculated for both digital marketing and outbound marketing. This metric is also calculated for a specific timeframe, like monthly, quarterly, or yearly.
This metric lets you plan for new sales, and plan your budget for each campaign. You can use the technique to break down your digital marketing activities and know how each activity is performing. You can implement new activities that yield you results over a given period.
Customer lifetime value
You can also measure how much revenue you can generate from a single customer over an average lifespan. Digital marketing lets you incorporate this metric to measure customer value by reaching out to them and see what they value the most. It gives you closer insights into areas where you can improve your business. It also helps you retain current customers, reduce confusion, provide enhanced customer experience, and boost their lifetime value.
Monthly website traffic
Monitoring the number of visits to different web pages on your website is a proven strategy to enhance business performance. It’s like a window into your website, and you can use the numbers acquired to evaluate those pages that have the highest visits. It allows you to look close at other pages and take action to increase visits and boost conversions. Increase your budget for cost-per-click ads or create SEO-optimized content to attract visitors organically.
Conversion rate
The percentage of visitors who complete a specific action on your website is the conversion rate. It can include anything like filling and submitting an online form, signing up for a service, purchasing a product, and others. This KPI is instrumental to track how you’re successful in attracting and converting leads. When you know your website isn’t converting the desired leads, its time to rethink your marketing strategy.
Traffic-to-lead ratio
This metric lets you clearly track where your traffic is coming from, and you can also track whether the desired percentage of traffic become your leads. If this ratio is low, then it’s a clear signal that something is wrong. It could often be a misalignment between what usersthink is available and the information that is actually available. It could also be an indication that your content isn’t serving their purpose or you’re not answering their queries.
Social media traffic and conversion rate
Social media platforms are fast becoming a lucrative source for expanding business and also for enhancing customer outreach. It’s a driving factor for every campaign’s performance in the long run, and social media platforms are great place for generating awareness, educating your audience, and enhance your brand’s reputation.
You can use this metric to measure:
- Number of lead conversions generated via different social media platforms
- Number of customer conversions generated from each social media channel
- The percentage of traffic each social media channel brings your website
Bounce rate
You design your website and plan your digital marketing activities with the intention to attract quality traffic that converts. However, when a visitor lands on your website and goes away immediately, it’s a bounce. It’s vital to track this KPI to analyze where your page is going wrong, and take measures to improve them to encourage visitors to spend quality time on your webpages.
Keyword impressions and ranking
It’s a powerful KPI that lets you track the number of times your website appeared in search results for a specific keyword. The keyword ranking influences where your website appears in search engines. You can use the same to design campaign that attract high impressions and boost ranking that increases quality traffic.
Net promoter score
You can measure customer satisfaction, and this KPI indicates how likely your customers will recommend your business to others. The comments you receive, and the metric will give you direct and real-time feedback from your customers. You gain better insights into your marketing campaigns and also take strategic measures to improve the performance.
Returning vs. new visitors
The percentage of returning customers is a strong indication of how engaging your audience is. This also means a low return rate to a specific blog post indicates that your content isn’t compelling enough for customers to return. Use this metric to provide important and relevant information to customers. You can also use it as a remarketing strategy to attract past visitors to your website.
The Conclusion
These are state-of-the-art metric that aren’t for one-time use, but should be used regularly. Track your marketing performance using these metrics on a weekly, monthly, or annually basis, and this depends on the nature of your business and your business objectives. Your sales and marketing team should also be encouraged to master using these metrics and provide insights into how your sales and marketing campaigns are going. Your goal to acquire new customers lies in using, reviewing, tracking, and improving your marketing activities using these digital marketing metrics.
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