Key performance indicators, or KPIs, are measurable goals used to help organizations measure and track success. For marketers, it is a useful method of setting expectations and proving their work is causing a positive impact on the companies they work for.
In today’s changing marketing environment, digital disruption has made it crucial for businesses to create and plan both short-term and long-term KPIs. It’s no longer just about the usual suspects: cost per acquisition, leads, and sales revenue.
There are a number of other KPIs that companies should be measuring to achieve a more successful marketing strategy. These KPIs will help your company identify what tactics and campaigns are working.
Using the right KPIs will enable your company to adjust its strategies and the costs to execute them. Companies shouldn’t keep on supporting marketing activities that are making them lose money.
When KPIs are amiss, your company could make decisions based on wrong reports and incomplete information. The right KPIs should help you reach your company’s marketing goals and that’s where this article can help.
Find out what marketing KPIs you should be measuring to quantify the strategies that your digital marketing team is developing.
Establish Marketing Goals
The first step to identifying which marketing KPIs should be measured is to establish your company’s marketing goals. It should be indicated in your marketing strategy plan or business strategy plan. It can include raise brand awareness, enter new markets, increase sales, boost revenue, or launch a new product or service.
Every business will have its own marketing goals. The job of the marketing team is to figure out how to measure the progress their making to accomplish those goals. The KPIs they should use to measure their work should be connected to a “conversion.”
Conversions are easy to define and measure. There are many types and for each one, you can set targets and goals. This will make it easy for your team to focus on the value that each conversion adds to the company.
While each company has different marketing goals, these are the most common conversion type KPIs for digital marketing that you should be measuring:
Mobile Traffic and its Conversion Rates
We live in a mobile world. There are 7.1 billion mobile device users worldwide, 75% of which are smartphone users. It’s important more than ever to know the number of traffic that your marketing strategy is reaching through mobile devices. At the same time, you should use tools to measure how much of the traffic you’re receiving are converted to leads and sales.
Social Media Reach and its Conversion Rates
With billions of people on social media today, it’s no question that its reach should be measured as well.
How many people are reaching you through each social media platform? How many people are turned to customers for each platform? Questions such as these can help you determine which platform works best for your company. You can then focus more effectively on platforms that produce results.
Form Conversion Rates
Forms on websites play a major role in gathering leads. It’s important to measure how many of your audience actually answers those forms. It will also help you know whether your landing pages and content are effective in convincing and encouraging your audience to fill out forms.
Organic Search and its Conversion Rates
Organic searches are search results that are not affected by paid advertising. You can measure it in four ways: the percentage of leads and number of customers you earned from organic search, the percentage of leads who used branded keywords, and those that used other terms.
Site Traffic and its Conversion Rates
There are four important metrics to measure traffic and conversion you receive through your website: unique visits, conversion per visit, conversion by source, and qualified leads from conversions. Analytics for these metrics and creating reports about them can help you understand how website activity contributes to your company’s online success. You can then optimize sources of traffic and increase your conversion rates.
Customer Lifetime Value
Adobe’s CRM lead management platform for CMOs (chief marketing officers), the value of a customer can only be measured through the time they spend as a customer of your company. But aside from measuring the time they spend with your company, you should also track their churn rate. It is the measurement of how many customers stopped subscribing to your service or website.
A CMO for digital marketing can help you with your goals. It’ll be worth the investment. A CMO has deep marketing knowledge, enabling your company to choose suitable KPIs. Remember, the right KPIs can help your company focus on effective marketing strategies.
There are many other KPIs, but these are the most common that you should initially measure for your company’s marketing goals. There’s a lot to consider, and it requires time and planning.
