Despite implementing numerous digital marketing strategies, most often, the results do not even touch the basic requirements, let alone meet the high expectations. Even when there is nothing wrong with the plans and actions, the end numbers are not at all satisfactory. The most prevalent reason behind marketing strategy failure is poor performance, which can be addressed by remodelling the existing strategies and implementing new ones.
But to do so, you will need a clear picture of the strategic performance in an understandable and quantifiable form. Let’s say you have used long-tail keywords for your websites but they are not able to generate the expected leads. Rather than generalizing their poor performance, you should focus on knowing the numbers behind their actions.
This is where digital marketing KPIs come into the picture. Acting as analytical metrics, they will help you quantify the performance and quality of the marketing strategies, goals, and other elements implemented for your online website, social media profile, or any other digital channel.
However, what exactly these KPIs are and how do they perform? Diving straight into the work without knowing the background of key performance metrics for digital marketing will do no good. Hence, we have curated a detailed guide for you, explaining what KPIs entail in digital marketing, their significance, and the best ways to use them to unlock your online business’s true potential.
What are digital marketing KPIs?
First, let us offer you clarity about what digital marketing KPIs are. Whenever you draw a strategy, there is always a goal that you want to meet with the former. For instance, let’s say your goal is to generate 10% more organic traffic for your website than the previous month. For this, you will implement a set of action strategies, like the inclusion of long-tail keywords, promoting the channel on social media platforms, and opting for PPC services.
KPIs or key performance indicators are certain quantifiable metrics that allow you to assess how close you are to achieving the goals using the already implemented strategies. In light of the above-mentioned example, likes and comments on your social media posts can be treated as KPIs to know whether they have generated the expected organic traffic for your website or not.
So, you can easily assess the performance and progress of your digital marketing strategies using the KPIs. They make it easier for the decision-making process, giving you exact and valuable insights into the market and your action plans.
Why do digital marketing KPIs matter so much?
Understanding the importance of digital marketing KPIs is crucial before you start planning the performance tracking. Otherwise, it would be difficult for you to take appropriate actions right on time. So, below we have discussed the major reasons why you should pay attention to KPIs.
- Valuable insights: Firstly, the KPIs will allow you to gain valuable insights about the performance of the action strategies you have implemented for digital marketing. For example, you can easily understand if your social media posts are working properly or not by using the built-in analytical features of different channels.
- Real-time performance tracking: Using the KPIs, you can easily track the performance of the action strategies you have implemented for digital marketing. Based on the results, you can make modifications to improve the results and meet your goals without any hurdles.
- A clear picture of what’s happening: You will be able to realize what’s happening with your digital marketing strategies through the key performance metrics. For example, you can easily use the KPIs to know the real-time progress of the marketing campaigns and identify the loopholes that are present.
- Close monitoring of customer journeys: Thanks to the digital marketing KPIs, you will be able to monitor your customers, and their actions, predict their decisions and perform a thorough analysis of their journeys throughout your marketing funnels. Hence, using the KPIs is imperative for your online business.
What are the top digital marketing KPIs to track?
Since now we have highlighted the importance of tracking the digital marketing KPIs, let’s have a quick look at the best metrics you should include in your list to know about the strategic performance of your action plans.
- Cost per lead: If you have adopted any strategy for paid lead generation, you should enquire more about the costs being incurred for generating one lead. It can be the total budget of a paid campaign or a paid social media post you have uploaded. If the cost per lead is quite higher than expected, try to switch to another plan so that the amount can be reduced without affecting the performance of your action strategies.
- Cost per conversion: Not all the generated leads will get converted into prospective customers. So, tracking the cost-per-conversion metrics is imperative. Choose a definite period and then check the number of leads generated and the total number of leads who have been converted. Now, compare those numbers with the costs incurred and the efforts implemented. If you find any discrepancy between the comparisons, it means that the conversion strategies are not performing as per the expectations.
- Net promoter score: With this KPI, you can easily assess customer satisfaction with your brand or business. It allows you to check how many customers are satisfied with your business and want to stay loyal to the brand. Surveys are mostly used to gain customer feedback and further strategy performance tracking.
- Monthly website traffic: The digital marketing strategies you have implemented are meant to drive a certain percentage of traffic to your online website. By checking the monthly incoming website traffic, you can easily judge if the strategies are functioning as per expectations or if they need any further modifications for better results. For example, Google Analytics will help you monitor metrics like the number of visitors to product pages, landing pages, blog sites, and many more.
- Average time on page: Another important KPI that you can use to monitor the performance of your digital marketing plans is the average time spent on each page of the website. The higher the time, the better will be the conversion rate. If the average time is too small, it means the bounce rate is pretty high and the strategies need modifications.
Final words
In this article, we have highlighted the significance of tracking digital marketing KPIs for understanding the performance and progress of your online website. Based on these, you can position your brand accurately in the market and stay ahead of the competition.
Additionally, tracking the KPIs will also help you make the right calls at the right time to increase your market penetration, establish a strong brand image, and build loyalty with your customers.
