Why are Digital Marketing KPI’s Important?

Why are Digital Marketing KPI’s Important?

A Key Performance Indicator (KPIs), is a measurable value that shows progress in reaching a specific business goal.

An online marketing KPI can be tied to specific objectives of a marketing campaign or channel. It indicates progress and helps measure the effectiveness and Return On Investment (ROI).

In simple terms spending time or money on marketing without measuring the outcome is like flying blind. To be competitive and use marketing budgets wisely we need to know the effects of our actions.

Typical Marketing KPIs

Measuring the right KPI’s is vital to the success of any business. I have made a list below of some popular KPI’s we track for our clients:

  • Website users or sessions
  • Website traffic sourde
  • Sales per traffic source
  • Mobile traffic leads and conversion rates
  • Total sales
  • Abandon cart recoveries
  • ROI from pay per click ads
  • Digital marketing ROI in general
  • Cost per acquisition
  • Customer lifetime value
  • Landing page conversion rates
  • Customer accounts
  • Newsletter subscribers
  • Webform submissions
  • EDM conversion rates
  • Social media engagement
  • Google local search conversions

Targets

Every KPI you define must have a target or goal associated with it which you are aiming to achieve within a set period. Make sure you analyse your current performance as a base line. You can’t get from A to B without understanding point A, your starting point.

Data Sources

The quality of the data source is just as important as the measuring. Tools like Google Analytics, Google Search Console, Google AdWords, Google MyBusiness insights, YouTube analytics, Ecommerce system dashboards, Social Media Insights and Newsletter analytics are a good starting point.

Reporting of Marketing KPI’s and Results Evaluation

Measuring is an important part of KPI reporting and the primary key that informs you about the success or failure of your strategies.

Each business needs to decide which KPI’s are important to track in order to achieve their goals.

At Flux Creative we assist our clients with an initial marketing strategy then provide ongoing monthly KPI reports where we review outcomes, identify issues, make recommendations and take actions. All with the aim of reaching specific business goals.

In Summary

KPI’s are associated with the core goals of your organisation. They require an understanding of your business's objectives and the ability to turn those objectives into measurable goals.

If you have any questions or would like to learn more about marketing strategies and KPI reporting, Get in touch.