Every business needs Key Performance Indicators (KPIs) to measure its success. Here’s how to set and track yours for your digital marketing strategy.
First, What is a Key Performance Indicator (KPI)?
A Key Performance Indicator (KPI) is a metric used to measure progress toward important business objectives. High-level KPIs measure the collective performance of a company, while low-level KPIs measure the impact of specific initiatives or departments led by individuals and teams, like marketing, sales, customer service, etc.
What Are KPIs Used For?
KPIs are used for 2 primary objectives:
- ensure everyone has an actionable plan for achieving overall goals
- measure an individual’s contributions to overall company goals
How To Define KPIs
In order for KPIs to work, it’s important to define them properly.
There’s a huge difference between “grow revenue” and “grow revenue 20% this year.” KPIs must be well-defined so that teams and individuals know exactly they’re trying to achieve and when they are trying to achieve it by. For this reason, KPIs usually follow S.M.A.R.T. goal criteria:
- Specific: Is the objective specific enough?
- Measurable: Can the objective be measured?
- Assignable: Is the KPI assigned to at least one individual or team?
- Realistic: Can the KPI be realistically achieved?
- Time-bound: Is there a specific time frame for achieving the goal?
By defining the KPI in this way, you can be sure that the outcome is binary: pass or fail. As your teams make progress toward hitting their KPIs, you can determine if each KPI—and the associated tasks required to achieve it—actually helped you accomplish your higher-level business objectives.
So, Here Are Some Examples of Digital Marketing KPIs:
Among the various branding and digital marketing services that we provide to businesses here at Couple of Creatives, the most common are websites, SEO, email and social media. So, for each category, I’ve broken down some examples of KPIs that we use on the regular to measure our efforts.
Imagine your website as a real-life store you could go inside and walk around in. When you go into a store, you see all kinds of shoppers. Some are regulars, while others are there for the first time. Some are just scoping their options, while others are making their hundredth purchase.
KPIs For Websites
It’s useful to gather information on what kind of activity is going on and who is shopping with you. It can help you to become more accommodating to these consumers’ needs, and ultimately, help your business make more sales. To monitor the results of your website performance, you can use tools like Google Analytics to track important bits of information that will determine if your efforts are working as planned or not.
- Website Traffic (organic, new vs. returning visitors, unique visitors)
- Time on Site/Page (how long they stay can let you know if your content is captivating enough)
- Bounce Rate (% of visitors who enter the homepage, then leave rather than continuing to view other pages)
- Page Views (# of people that have seen a particular page)
- Conversion Rate (# of conversions divided by the total # of visitors)
Search Engine Optimization (SEO) is a tedious digital marketing process. It may not seem like the most creative of job duties, but I guarantee you there is a whole art to it. When crafting SEO-friendly content for websites, it’s like putting together a puzzle. You have to be sure all the pieces work together so that it turns out right.
KPIs For Search Engine Optimization
Many tools are available to help ensure your content is optimized for search engines. There are even plug-ins you can use for free. For example, Yoast SEO works great for WordPress sites. Among the many moving parts, here are some basics you’ll want to keep in mind.
- Keyword Rankings (the position that your website is listed in Google when a user searches that phrase or keyword)
- Indexed Pages (pages that have been found by search crawlers & deemed to have enough quality for relevant search phrases)
- Crawl Errors (issues encountered by search engines as they try to access your pages)
- Metadata (concise blurb of data that describes what the content within your site is all about)
We like to use Mailchimp for our own email marketing campaigns. However, for our clients, we use various apps, often depending on their preference. Regardless of the platform, there are some super easy ways to monitor the effectiveness of your e-marketing campaign, as follows.
KPIs For Email
- Subscribers (# of people opting in for your content)
- Open Rate (% of contacts who opened your email compared to how many contacts were sent the email)
- Unsubscribe Rate (% of people who opt out from an email list)
- Click-Through Rate (ratio of users who click on a specific link to the # of total users who view an email)
Oftentimes, we will use A/B testing for email campaigns to try out different variations of content. This is where we split our audience and send half of our email subscribers one version and half of our subscribers a completely different version. We will use different headlines, body copy, photos, videos and links. Consequently, if one group has a significantly higher click-through rate, it may indicate that the content in that email is performing better.
Social media is such an important aspect of your digital marketing campaign. Of course, it is easier said than done. However, if you can commit to a plan of “showing up” online and sharing valuable, relevant content on a consistent basis, you may find that it can be an extremely efficient way to direct online traffic to your website, which should ultimately lead online users to purchase what you offer, if you have it all set up right.
KPIs For Social Media
Whatever your business goals may be, it is important to monitor your social media efforts, using the following KPIs.
- Followers (# of people tuning in for your content)
- Engagement (measures shares, likes & comments)
- Reach (# of users who have come across a particular piece of content on a social platform)
- Engagement-to-Reach Ratio (divides the sum of [shares, likes, comments] on your post by the amount of followers that you had at the time of the post)
- Impressions (# of times social media browsers have been showed your content. It doesn’t just count people who click or engage with your content, but all those who are exposed to it)
- Amplification Rate (ratio of shares per post to the # of followers)
Anyway, that’s all for today. Hopefully this post was helpful in understanding some of the ways in which you can measure the effectiveness of your digital marketing campaign. As always, if you have any questions or are in need of marketing for your business, contact us anytime.