Key Performance Indicators or KPIs are a set of quantifiable goals that help you measure and track your digital marketing campaign success.
It helps digital marketing experts set valid expectations and prove the effectiveness of the said digital marketing campaigns.
KPIs help digital marketers analyze whether or not their campaigns are hitting the right goals.
The Importance Of KPIs
In the digital era, customers are overexposed to the infinite options available in terms of products and services in the market. They fully understand the power they hold over making or breaking a brand and utilize it effectively.
It is when KPIs come into the picture. Setting achievable KPIs is one of the first steps involved in creating a successful digital marketing campaign. KPIs measure the effectiveness of the various digital marketing services and help digital marketers analyze whether their campaign path is solid or needs altering.
Digital Marketers establish KPIs for keeping your business goals on track.
Data overload and constant market challenges make it difficult for digital marketing experts to narrow down essential marketing KPIs to get used in digital marketing campaigns.
Take a look at the below listed KPIs to know the essential KPIs required for almost every digital marketing campaign.
Essential KPIs To Use In Digital Marketing Campaigns
1.Cost Per Acquisition
An important KPI metric, Cost Per Acquisition, measures the approximate cost required to acquire a single customer on a campaign or channel.
It measures whether or not your digital marketing campaigns are making your clients happy.
To know your cost per acquisition, simply divide the total cost ( via specific media channel/campaign to acquire new customers) by the number of new customers you have acquired from the same channel or campaign.
2.Cost Per Lead ( Average)
The KPI measures the effectiveness of your digital marketing campaigns.
It informs your sales team about generating new leads for your campaigns.
A lead is nothing but an individual who expresses interest in your product or services by completing a goal.
The importance of this metric is to provide your team with a concrete figure to understand the appropriate money that needs to be spent on acquiring new leads.
It also provides enough data for using it in your return on marketing investment calculation. Cost Per Lead= The Cost Of Lead Generation/ Total Acquired Leads.
3.Response Rate & Bounce Rate
Response rate helps you understand how engaged and responsive the users are with your digital marketing campaigns.
It helps you and your team analyze whether or not users are interacting with your campaign.
To know your campaign response rate, divide the number of responding users by the number of users contacted. And multiply the obtained figure with 100.
Bounce Rate refers to the number of users leaving your website after viewing one page, rather than visiting and navigating through subsequent pages on your website.
Bounce rate monitoring helps you identify whether or not your website content and design are effective enough to attract further interest in your website offerings.
4.Social Media Engagement
A crucial KPI metric, social media KPI values are used by a digital marketing expert for measuring the performance of social media campaigns.
Important social media KPIs include Followers’ growth, likes, social interactions, traffic conversions, social shares, etc.
- Measuring your social media strategies is simple.
- Select a period which you want to make your report on
- Find out the total number of likes, shares, and comments you have received by adding everything together.
- Divide the obtained number by the total number of followers
- Multiply the number by 100.
Ensure to set SMART goals, meaning specific, measurable, achievable, relevant, and time-bound. You and your digital marketing team should make it a point to achieve these goals.
Keep track of your listed goals and pay attention if you are achieving them or not. If you do not, then alter your digital campaigns for achieving them.
6.Lifetime Customer Value
Customers should not just make one purchase and disappear; they have to keep on coming back and become loyal customers. Lifetime customer value represents the total amount of money a customer is expected to spend on your products/services during their lifetime. An important KPI, helps you know and makes decisions on the amount of money to invest in acquiring new customers and retaining the old ones.
It is the profit associated with the customer, which guides you to spend the required amount for maintaining the relationship.
Return On Ads Spend (ROAS) gives you a quick look into the profitability of your digital marketing campaigns.
Whether you want to glance at individual campaigns or individual keywords, ROAS gives you a quick insight into the efficient keywords, campaigns, ad groups. You can decide on the extra budget to be spent on your digital marketing campaigns after analyzing your ROAS.
ROAS is calculated by dividing the ad revenue generated by the ad costs.
8.Inbound Link Building
Inbound links drive traffic to your websites, and the more they drive traffic to your website, the better. By using several different SEO tools to find the number of inbound links to your website and try and increase it constantly.
High-Quality Blogs, Guest Blogs, Articles are an effective way of increasing inbound links. Inbound links have a direct positive effect on your website traffic thereby resulting in positive conversion rates.
9.Return On Market Investment (ROI)
ROI refers to the ability of digital marketing campaigns to generate new revenue.
It refers to the amount of revenue a digital marketing campaign generates, as compared to the cost of digital marketing campaign, and must always be higher than the latter.
ROI= (Sales Growth/Marketing Cost ) x 100/Marketing Investment
With the help of this KPI, Digital Marketing experts can gauge whether or not their campaigns are successful and profitable.
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