Let’s face it, digital marketing can be costly, and there’s a risk of losing money if not done correctly. This is why tracking your results is so important. You stop doing what isn’t working and do more of what is. The way to measure this is by setting KPIs or Key Performance Indicators is a metrics in marketing to measure various factors of your digital marketing campaign.
This digital marketing measurement ultimately determines the effects of your efforts to make the necessary adjustments to improve, increase or stop the campaign.
What is a Digital Marketing KPI?
Key Performance Indicator allows marketers to evaluate the success across all types of marketing channels and gives you the ability to measure these tops examples of key performance indicators Cost Per Lead (CPL), Marketing Qualified Leads (MQL), Cost Per Acquisition (CPA), and Website Visits Per Marketing Channel. Each of these digital marketing KPIs provides valuable information that will help you to measure your success so that you can make any necessary adjustments to better obtain your objective.
To effectively measure KPIs, you’ll need to know your goals whether it’s to increase revenue or website referral traffic. By outlining your goals you’ll be able to monitor if the efforts you are taking are working towards achieving these goals – are you increasing your revenue, gaining more traffic, or keeping lead cost low.
Why You Need to Track Your KPIs
When you measure performance against goals it helps you to make better decisions that not only improve your efforts, and achieve results faster, but ultimately saves you money. You can make critical adjustments that guide your decision-making to achieve your strategic goals based on live data.
How to Track Your KPIs for Digital Marketing
Google Analytics is one of the best ways to track your KPIs. You can create goals within the platform and everything will be tracked to monitor how it’s going. But there are a lot of tools both paid for and free that you can use to track some of the most important KPIs – Leads, Lifetime Value of a Customer, Sales Team Response Time, Website Traffic to Website Lead Ratio, Social Media Reach and Engagement, Email Marketing Performance, Inbound Link Building, Landing Page Conversions, and Blog Posts Visits.
Most Important KPIs in Digital Marketing
When you use the latest innovations in technology you can monitor KPIs in digital marketing that allows you to set, obtain and boost your ROI for all types of marketing campaigns. At Dispensary Growth that’s exactly what we do. Keeping up with technology gives us the upper hand in achieving success.
Without KPIs, you are wasting time, money, and efforts on marketing that you have no way of knowing if they are working.
Here are some of the examples of KPIs for different campaigns that you’ll want to monitor,
General Marketing KPIs
Learning how to utilize your web analytics will give you with a ton of valuable information about the performance of your website helping you determine all types of digital traffic metrics. Most web design companies will set this up for you.
Visitors
How many visitors that come to your website is important for just about any marketing campaign.
Leads
This shows the overall health of your business. By keeping track of your leads you’ll begin to see patterns over time that helps to check what your visitors find most valuable.
Qualified Leads
Not all leads are equal. Qualified leads are more likely to purchase. When you track these patterns you’ll find the parts of your website that are most effective and the content that turns them into a more qualified lead.
Conversion Rates
Conversion rates are the percentages of people that move from one stage of your campaign into the next. Understanding this rate will help you close the gaps where you lose them to improve your marketing and sales process.
SEO KPIs
Understanding and monitoring SEO metrics will dramatically improve your SEO efforts.
Organic traffic
Organic traffic is how many visitors reach your website from organic search results. This will tell you the growing number of people seeing and visiting your website.
Search ranking report
Where your website is ranked in the search engines for relevant keywords, the better your targeted traffic will be to your website, which ultimately means more leads and more conversions.
Search visibility
Search visibility reveals how often your domain is shown in search results. It will show this based on the keywords it’s ranking for. You’ll be able to see the positive dynamics that are attracting visitors so that you can improve your website optimization.
Links
Links are one of the most important aspects when it comes to SEO. Backlinks improve your ranking. Gaining high-quality links improves your site authority. You can analyze backlinks and measure their quality before acquiring the backlinks.
Social Media KPIs
These are some of the best social media KPIs to track,
Reach KPIs
Reach KPIs measure how many users have come to your social channels. These users don’t necessarily engage with your channel as reach and engagement are different. Reach shows how your audience grows.
Impressions
Impressions show you how visible your posts are. Impressions do not necessarily mean they have actually viewed or read it.
Follower count
This is the number of followers on your social channel.
Paid Advertising KPIs
There are a ton of important KPIs for advertising agencies dealing with PPC campaigns. Spending money on any type of advertising can be costly. PPC KPIs tell you how effective your pay-per-click campaign is going.
Revenue
Every business has a goal of increasing revenue. When advertising you must track your sales that are directly related to your campaigns to determine if the sales you’re paying for are impacting your bottom line.
Return on Ad Spend (ROAS)
A ratio to ad spend calculates how much money you’re making versus how much money you’re spending on ads, but it doesn’t account for any other costs associated with advertising.
Profit & Return on Investment (ROI)
ROI accounts for all costs that are associated with the campaign. This allows you to understand the value of the patient.
Email Marketing KPIs
Number of emails opened
You can have 10,000 emails delivered, but that doesn’t mean all 10,000 emails will be opened. Tracking how many emails are opened helps you determine if your email strategy is working.
Click-through rate
The click-through rate also referred to as CTR, shows the number of people who clicked on a link in your email. This indicated which links interest them. This could be related to the location of the link, or the wording.
Unsubscribe rate
The unsubscribe rate is important to monitor. You might notice a trend in your unsubscribe rate. These trends can be related to a template design or sending schedule and you can make adjustments that reduce unsubscribes.
Bounce rate (hard and soft)
A hard bounce and a soft bounce both affect your email campaign. While a hard bounce is permanent a soft one is temporary. Hard bounces are caused by invalid emails, and soft bounces are caused by temporary issues such as a server being down.
Spam complaints
Too many spam complaints can get you into trouble. These spam complaints can happen for a variety of reasons such as difficulty unsubscribing. You can improve this by making sure the unsubscribe button is working and the process is simple.
What is KPI Framework?
This is the foundation of your goals and objectives. You’ll build this foundation by identifying your business objectives, goals for each objective, the KPIs for each goal, targets for each KPI, and the segments that help you check the progress.
Measure Digital Marketing Effectiveness
Digital marketing can increase sales, gain more leads and increase revenue for your business. And digital marketing metrics help you to know if the efforts are paying off?
Digital advertising measurement is measured in metrics. Metrics help an organization analyze its success and identify areas that might need improvement. The difference between Metric vs Measure is, metric is tied to performance, where measure is the actual measurement.
Meeting your goals with tools and measuring the success of your efforts isn’t easy. Dispensary Growth can help with prospecting metrics, KPI rankings to KPIs in marketing automation, website marketing KPIs, SEO or email marketing, and everything in between. We have proven success in helping businesses just like yours obtain their marketing goals and grow their business.
