What is KPI (Key Performance Indication) ?
KPI stands for Key Performance Indication that digital companies use to understand and measure their marketing results. Based on the KPIs (Key Performance Indication), many decisions can be made which can lead to the success of a brand, product or service. It helps marketers access information and organize and plan the future course of action more effectively.
To understand what is KPI in digital marketing, let’s delve a little bit deeper. It is a measurable value that marketing professionals use to measure success across all marketing channels.
Are there any known marketing KPIs which are beneficial?
- Cost Per Lead (CPL)
- Marketing Qualified Leads (MQL)
- Cost Per Acquisition (CPA)
- Website Visits Per Marketing Channel
With the help of effective marketing tools, you can get a holistic picture of your marketing performance and accordingly make decisions to improve results over a period of time. In order to see the results and make informed decisions, marketers would need to track the various marketing KPIs like: Lead generation, website and traffic metrics, SEO (Search Engine Optimization), paid adverts, social media. These are the 5 broad categories of marketing KPI.
How does KPI help with marketing strategies?
In the coming months, it is important to keep an eye on the following KPIs that will help make a positive impact to your marketing strategy.
- Cost per lead: The amount that is invested in per lead should match the efforts that have gone into gaining the lead. Through this metric, marketers can understand how much budget was exhausted in order to get a new contact.
- Cost per conversion: Once you get a lead, it doesn’t necessarily mean that you have a client. The cost per conversion metric will help determine how much is invested in turning a lead into a customer. The higher the conversion rate, the better it is for a company.
- Net promoter score: Through brand surveys, you can understand how satisfied or dissatisfied a customer is with your product by asking a simple question – How likely would you recommend the product/service to a friend? If the answer is between 9-10, you have a customer who likes your product. 7-8 would mean that the customer is open to other options. Anything up to 6 would mean that the customer is unhappy with the product/service and would not recommend it to a friend.
- Website traffic (monthly): Get detailed info via Google analytics (GA 4) to understand how many customers are visiting your website every month. You can also see which product is faring better and which is not.
Positive Impact to Your Marketing Strategy
- Visits on every channel: Visits per channel is an important metric to understand how your customers got to know about your product/service, specifically via which channel. Whether it is via paid or organic search, the KPI (Key Performance Indication) will help you market your product better.
- Average time on a page: Generally people visit a particular site for information. If they find what they are looking for it is likely that they will spend a little more time on it. If they leave the site within a few second then that means the site lacks information. This Key Performance Indication (KPI) helps marketers put out more info that will attract customers.
- CTA conversions: Having a great offer or product that is being promoted online with a Call to Action will help you understand how many such customers were obtained via the Call to action (CTA) button that is found on a number of digital collaterals.
- Organic search traffic: If you have utilized SEO (Search Engine Optimization) to the best, you are likely to get more attention organically. This Key Performance Indication (KPI) helps understand whether or not organic search is the way for your brand or not.
Understand What is KPI in Digital Marketing
To understand what is KPI in digital marketing is not very difficult and implementing it is also not difficult. All you need to do is a bit of a research and form a team to get the job done. If that is not something possible, hiring a digital marketing agency will be the best. The skilled professionals are trained in this domain and will help you get results quickly. All you have to do is provide them with everything your product is about and they will work on a strategy that will definitely yield good results.
If you plan on doing this by yourself, then there are tons of resources that are available online that will help you understand what is KPI in digital marketing and more. In fact being well-versed in the digital domain will only help you gain success for your product.
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KPI – Campaigns
Today, many marketers are opting for similar approaches that can lead to your approach becoming ineffective. In whatever you do, make sure to offer your customers with something that will grab their attention. It is extremely crucial to stand-out from the competition in this day and age. Your product may or may not be different from the others in the industry.
Therefore, make sure to play on its USPs in the most creative manner. Take advantage of the digital marketing KPIs and understand how your campaign is performing, how many leads you are gaining and moreover how many customers you are acquiring. If you see inadequate results, rework on your strategy. Digital marketing is an expensive affair.
Therefore planning the budget properly is crucial so that you get the desired returns on your investments. Today, small and large companies alike are investing in digital marketing because they have witnessed the success it brings. You too can build and grow your business with smart planning.
Get a team and work on a strategy that is unique and one that delivers results. If you find it difficult to manage it all by yourself, remember that there are plenty digital advertising agencies that will be happy to guide you.
So, understand and learn all about what is KPI in digital marketing and use it to the best of your ability.
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