Digital Marketing KPIs help companies achieve their best results through measurement.
They are fundamental to measure campaigns with quality and accuracy. These indicators show the performance of the actions defined in the strategy, so it’s possible to have a broader view of what the efforts are generating.
There’s a large selection of KPIs to help us detect sales results, conversions, engagement, and media investments.
From the different channels in which campaigns run, marketing teams can monitor various activities.
Keeping track of these numbers is practically an obligation in any company’s Marketing routine.
In this post, we’ll cover the following topics:
- What are KPIs?
- Why is it important to keep track of KPIs?
- Which are the 8 Digital Marketing KPIs to measure in 2020?
Read on and check it out!
What are KPIs?
Key Performance Indicators, or KPIs, are metrics that show the performance, in numbers, of a specific action in Digital Marketing. As a set of indicators, their function is to show how close or far strategies are to their goals.
We must track these KPIs as they vary according to campaign performance. For example, a very common KPI is one that measures visits to the company’s website from social media channels.
This KPI will measure the volume of traffic from channels such as Facebook, Instagram, and Twitter, which may vary by day, week, or month.
No matter how oscillating these numbers are, it’s always important to check the performance.
KPI selection must match Marketing objectives
Digital Marketing teams can use whatever KPIs they want, even creating their own. What matters is how they help analyze the strategies executed. So it doesn’t matter how many KPIs you use, but which ones.
We should make this choice of indicators from the goals of the company. Always consider that the goals can change and that each campaign will have its own purpose.
That been said, always remember that the list of KPIs is changeable.
If a strategy aims at increasing traffic to the website, naturally, the KPIs need to link to this objective.
Here, relevant metrics are primarily those that point to where visitors to the website come from, not how many conversions they generate.
It’s possible and even necessary to use a larger selection of KPIs. Only with the right metrics, we can do a proper evaluation of the strategy. They are the ones that help translate the company’s progress towards the campaign goal.
Why is it important to keep track of KPIs?
Monitoring those Digital Marketing KPIs is an essential part of the process. The results that these indicators show are what professional marketers are looking for.
Understand why it’s important to follow these KPIs and what we can do when tracking them!
In a Digital Marketing plan, first, we define the objectives, and only then the strategies are chosen.
In this way, the results will attest if the choice was the most appropriate.
To visualize the effectiveness of the strategy, KPIs are indispensable.
If the answer to these numbers is definite, it’s proof that those choices in the planning were correct. However, poor metrics do not always represent inadequate strategies.
We also need to view KPIs from a broader perspective. Weak results should serve as a starting point for an investigation of what is going wrong.
Metrics are only valuable if there is an analytical view over them.
Proper budget investment
Smaller companies are used to working with reduced budgets for Digital Marketing. In such cases, investments must be accurate, with the most effective use of available money.
To know if the investment has been worthwhile is necessary to analyze the KPIs. This way, the metrics allow us to detect which actions and campaigns have made it possible to reach objectives faster and with greater effectiveness.
KPIs allow not only to avoid waste but to direct the largest percentage of the budget to the campaigns that yield a better ROI. Manage the available financial resources is also an essential part of Digital Marketing.
Which are the 8 Digital Marketing KPIs to measure in 2020?
Looking for the greatest Digital marketing KPIs to measure in 2020? We’ve created a list of the main ones that will make a difference to your strategy.
Find out what they measure and how to analyze and calculate them!
1. Cost per lead
This metric shows the individual cost of each lead earned. Thus, it’s possible to understand how much money we spend from the budget to get a new contact.
The goal is to evaluate if the amount invested is compatible with the efforts applied to get the lead.
It’s necessary to evaluate the time and resources applied to the strategy within a specified period.
In this time, the investment must be placed in parallel with the number of leads obtained.
2. Cost per conversion
We apply this KPI to find out what we have invested in turning leads into a converting client.
That metric is crucial, as it helps to measure the quality of mid-funnel media strategies. The higher the conversion, the better.
On the Customer Relationship Management (CRM) used, check the number of leads received in the period. After that, considering the same period, measure how many conversions it performed. In this period, evaluate the cost and efforts applied to achieve the obtained conversions.
It’s necessary to divide the monthly cost of a particular source of leads with the number of conversions. This way, you can find out how much each new customer cost.
3. Net promoter score
It sets this KPI to discover the level of customer satisfaction with the business.
To do this, we ask the following question in a survey: what is the chance of you recommending the product (or services) to a friend?
Depending on the rating chosen by the customer, we arrange them in three groups:
- who voted from 9 to 10 are brand enthusiasts;
- who voted from 7 to 8 are satisfied, but not so engaged and seeking better products, services, and offers;
- who voted from 0 to 6 are dissatisfied customers who may speak ill of the brand.
We calculate by subtracting the lowest level (0 to 6) from the highest level (9 to 10), resulting in the average rating of consumer satisfaction with the company.
4. Monthly website traffic
Fundamental but straightforward metric, this KPI shows the monthly traffic volume on your website.
You can find this information in Google Analytics, including details like:
- visitors in pages;
- visitors in product categories;
- visitors by price filters;
- visitors in landing pages;
- visitors on the blog (when it’s integrated into the institutional website).
5. Visits per channel
Traffic makes the Inbound strategies; after all, the goal is to attract consumers.
That’s why visits per channel are so important: they show which channels this traffic was built through.
This way, it’s possible to know whether the visitors came via social media, organic search, or Google Ads.
We do this measurement directly in Analytics, which presents this detail in its metrics.
6. Average time on page
Average page time is one of the ranking factors that Google’s algorithms consider. If users spend a short time on a page, Google can understand as if the page is not offering all the information the reader is looking for.
In Analytics, you can track this KPI and check the metrics individually by pages like:
- product category;
- blog posts;
- landing pages.
7. CTAs conversion rate
Using Calls to Action (CTAs) is normally to generate conversions when purchasing an item, downloading content, or accessing a page.
KPIs related to this activity measure the rate of conversions obtained through a CTA.
CTA conversion rate is also a KPI offered precisely by Analytics. You need to configure which buttons to track in advance and then access the indicator later to check the conversion rate in the CTA.
8. Traffic from organic search
This KPI is simple: with it, you can visualize the volume of access your site had from a regular Google search.
This traffic source is free and comes as a result of a good job adapting to the SEO parameters that Google requires. You can find this metric in Analytics as well.
Digital Marketing KPIs are essential in campaign monitoring and strategy definition. Without them, it’s impossible to measure the result of investments and efforts, which puts the company’s marketing plan at risk.
To upgrade your strategy, it’s important to understand what types of media are available and how you can use them. Read our content about it!