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6 essential digital marketing KPIs and how to fix them

20 Jun 2022. 10:41
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  • SME maturity
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    Topic
    1. Marketing digital y redes sociales
    Scope to digitize
    1. Digital organization

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To disign an efficient digital marketing strategy, it is important that you know your KPIs and how to measure them. We tell you how in this post!

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KPIs esenciales en Marketing Digital
Descripción

One of the advantages that digital marketing offers over traditional marketing is the ability to measure the performance and impact of our strategies. The ability to measure our marketing actions directly affects the performance of our business, as it allows us to identify areas for improvement.

 

However, as consequence of the digitalisation of these actions and measurement systems, it can be commun that we obtain  a large amount of data that is complex to interpret. To prevent this from happening, we need to be clear about our KPIs.

 

 

Wich are the KPIs?

 

KPIs or key performance indicators, are those metrics that are relevant to measure and compare the results of our digital marketing strategy according to the objectives we wish to achieve.

 

Is important to note that all KPIs are metrics, but not all metrics are considered KPIs.

 

In other words, metrics measure specific action that is not necessarily relevant to understand the progress of our strategy. However, a KPI is a necessary indicator to evaluate the performance or effectiveness of our marketing actions os strategies.

 

When difining the KPIs of our strategy, we may not know wich are the most appropriate metrics to take into account. Here we tell you what they are!

 

 

KPIs that stand out in a sales-driven marketing strategy

 

  1. Website traffic: the objective of this KPI is to measure and evaluate the different sources from wich the visits to our business website come from, whether they are organic, direct, through a search engine, through social networks or from a marketing campaign.

 

  1. Cost per lead: also known as CPL, these campaigns that focus on getting the highest number of leads for the lowest possible price. Usually an initial investment is made and then the price of each lead is analysed in terms of the total investment.

 

  1. Lead to customer conversion rate: this KPI focuses on measuring how many lead conversions your strategies have generated in a given period. It is important to know that the generation of sales qualified leads and conversion always go hand in hand.

 

  1. ROI: Is known as return on investment, as it is responsible for measuring the results of all marketing strategies. In other words, it checks the economic value of your investment. If you want to calculate the ROI, use the following equation: ROI = (Profit – Investment) / Investment

 

  1. Email marketing engagement: Its objective is to measure the effectiveness of email marketing campaigns through metrics such as open rate or click through rate.

 

  1. Sales increase: it helps us to know the evolution of our sales by comparing those of the previous month or year with  the current ones.

 

 

How to set KPIs in a digital marketing strategy?

 

Now that we know the main KPIs, it is important that we know how to define them within our digital marketing strategy. There are three key aspects:

 

1. Decide on the variable to be measured.

2. Determine the overall long term strategic objectives.

3. Set specific short term goals.

 

On the other hand, we must take into account that in order to set good KPIs in our strategies, it is advisable that they follow the SMART philosophy by complying with the following principles:

 

  • Specific: KPIs should be concrete and specific. For example, direct visits to our website.
  • Measurable: should be measurable or quantifiable in a simple way. For example, the number of openings of an email marketing campaign.
  • Achievable: KPIs should be a realistic challenge that we can achieve. For example, increasing sales by 40%.
  • Relevant: they should imply a relevant impact on our business. For example, the number of leads converted into customers.
  • Time-bound: it is recommended that they are set over a certain period of time. For example, the total number of visits to the website during the first quarter of the year.

 

There are many factors to consider when defining the KPIs in our digital marketing strategy. However, knowing how to do it and investing time in it is essential for the success of our business. Now that you know more about it... Will you start defining your KPIs and will you start tracking your goals?

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