As digital marketing evolves, so do the KPIs marketers need to track to measure success. In the business world, KPIs are most commonly used to measure progress in relation to strategic goals.
However, they can also be used to track progress in relation to operational goals or objectives.
There are a variety of different KPIs that organizations can use, and the specific KPIs that an organisation chooses to track will depend on its specific goals and objectives.
However, some common KPIs that are used in business include measures such as revenue, profit, customer satisfaction, employee retention, and safety records.
This post examines the top digital marketing KPIs every business owner or digital marketer must track.
What are KPIs?
Key performance indicators (KPIs) are a set of quantifiable measures that organisations use to track and assess their progress towards predetermined organisational objectives.
KPIs provide a means of evaluating whether an organisation is meeting its goals, and can be used to identify areas in need of improvement.
Why are KPIs important?
KPIs, or key performance indicators, are a type of performance metric used to measure and track progress. They are important because they provide a way to gauge whether or not a business is achieving its goals, and can be used to identify areas that need improvement.
If a company is not meeting its financial goals, this could be a sign that something is wrong with its business model or that it is not efficiently using its resources.
What are some good KPIs examples?
There are a variety of different KPIs that organisations can use, and the specific KPIs that an organisation chooses to track will depend on its specific goals and objectives.
However, some common KPIs that are used in business include measures such as revenue, profit, customer satisfaction, employee retention, and safety records.
Digital marketing KPIs
Digital marketing KPIs are quantifiable metrics that are used to judge the success of a digital marketing campaign.
As with every other type of marketing campaign, if you don’t measure the performance of your digital marketing campaigns, you may waste your time and money.
This post will teach you the top 10 digital marketing KPIs you must track to meet your business goals.
Top digital marketing KPIs to track
1. Cost per lead
Lead generation is undoubtedly one of the most important aspects of any digital marketing strategy. After all, if you can’t find new customers, how can you expect to retain the ones that you already have?
With so many companies cutting back on marketing spending, it’s more important than ever to maximise every dollar you invest in lead generation, hence, the need to track the cost per lead metric.
Tracking this metric allows you to refine your digital marketing strategy leading to an increase in qualified leads.
How to calculate cost per lead
To measure cost per lead, divide the total cost of your marketing campaign by the number of leads generated. This will give you an accurate picture of how much it costs to generate a lead through your marketing efforts.
Cost per lead = Total cost of marketing campaign/number of leads generated
2. Conversion rate
A conversion rate is the percentage of visitors to a website who take action to become customers or subscribers. The purpose of a website is to convert visitors into leads or sales, so a high conversion rate is essential for success.
There are many factors that influence conversion rates, such as the quality of the website, the offer, and the call to action. Testing different elements on your website can help you identify what works best to increase your conversion rate.
A good conversion rate is typically considered to be around 2-3%, meaning that for every 100 visitors to your website, 2-3 of them will take some desired action (such as making a purchase).
Of course, there are always ways to improve your conversion rate, so it’s worth doing some research in this area and testing different strategies to see what works best for you.
How to improve your website’s conversion rate?
There are many factors that can affect your website’s conversion rate. To improve your conversion rate, you should start by looking at your website’s design and user experience.
Is your website easy to navigate and use? Does it have a strong call to action? Is the overall design appealing to your target audience?
You should also make sure that your website is loading quickly and correctly on all devices. Users will be less likely to convert if your website is slow or doesn’t work properly on certain devices.
Finally, you should regularly analyse your website’s conversion rate and make changes accordingly.
3. Page views
Views per page, or page views, are a key metric for website success.
It measures how many times a page on your website is viewed. A high pageview count means that your website is popular and people are finding your content useful.
There are several factors that can impact the number of views per page:
– The design of the website
– The size of the text
– The availability of alternative content
– The use of animation
– The presence of social media shares
– The quality of the writing
How to increase your website’s pageviews?
There are a number of things you can do to improve your website’s page views. One is to make sure your site is well-designed and easy to navigate.
If visitors can’t find what they’re looking for, they’re likely to leave. Another way to increase page views is to add new, relevant content regularly.
This will keep visitors coming back for more, and may also attract new visitors. Finally, be sure to promote your website through social media and other online channels.
The more people know about your site, the more likely they are to visit it.
How do you measure page views?
There are a few ways to measure pageviews. One way is to look at the number of hits a website gets. This number can be found in the website’s log files. Another way to measure pageviews is to use a web analytics tool, such as Google Analytics or Porter metrics.
4. Customer lifetime value
The customer lifetime value (CLV) is a metric that measures the total amount of money a customer is expected to spend over the course of their relationship with a company.
This metric takes into account both the revenue from initial purchases and the repeat business generated by satisfied customers. The CLV can be used to help businesses make decisions about marketing and customer retention strategies.
It can be used to predict future customer behaviour, as it takes into account factors such as customer loyalty and spending habits.
How can companies increase their customers’ lifetime value?
There are a number of things companies can do to increase their customers’ lifetime value. One is to focus on customer retention and loyalty programs.
Another is to make it easy for customers to do business with you, including providing excellent customer service and making purchasing your products or services simple.
Finally, you can also look for ways to upsell and cross-sell to your existing customer base. By doing these things, you’ll be able to keep your customers coming back, which will in turn increase their lifetime value.
How to measure customer lifetime value
One common method is to take the average order value and multiply it by the number of orders placed over the lifetime of the customer.
CLV= average order value X number of orders placed over the lifetime of the customer.
5. Cost per action
Cost per action (CPA) is an online advertising billing model where the advertiser pays for each specified action that is taken by the user. Cost per action is also known as cost per acquisition (CPA).
The CPA model is attractive to advertisers because they only pay for results, and not for impressions or clicks. This means that every time an ad is clicked, it counts as a conversion, and the advertiser pays a set fee for each one.
The CPA model is often used in affiliate marketing, as affiliates are paid when they bring new customers to a company or promote customer conversion. Cost per action can be used to measure the effectiveness of online advertising and to track the results of marketing campaigns.
For example, if an advertiser spends $1 on each click of an ad, and the ad generates 10 clicks, the cost per action would be $0.10. If the same advertiser spends $10 on each click of an ad, and the ad generates 100 clicks, the cost per action would be $0.01.
The CPA model can also be used to compare the effectiveness of different marketing channels and marketing efforts.
For example, if an advertiser spends $1 on each click of an ad placed on a website and generates 10 clicks, the cost per action would be $10.
This means that the advertiser would pay $10 per click, with a total of $100 paid if all 10 clicks are generated.
However, an advertiser may also choose to place a separate ad on a mobile application, which drives 5 clicks at a cost of $2 per click. In this case, the cost per action would be $10. Therefore, advertisers can use CPA to compare the cost-effectiveness of various channels.
The most common form of cost per action is cost per click (CPC). Cost per click is the amount an advertiser pays each time a user clicks on an ad.
For example, if an advertiser places a CPC ad on a website and the user clicks on the ad 10 times, the advertiser would pay $10. In addition to CPC, advertisers may also use cost per view (CPV), cost per mille (CPM), or cost per lead (CPL) as a pricing model.
6. Click-through rate
Click-through rate (CTR) is a metric used to measure the success of online advertising or email marketing campaigns. It is the percentage of people who click on a link or ad and are taken to the desired destination, such as a website landing page or an online store.
Click-through rates are important because they show how effectively a campaign gets people to take the desired action. A high CTR means that people are interested in what you’re offering and are more likely to buy from you.
A low CTR could mean that your ad or email is not relevant to the audience you’re targeting, or that it’s not well-designed.
How to measure click-through rate
There are a few different ways to calculate CTR, but the most common is to take the number of clicks and divide it by the number of impressions (times your ad or email was seen).
For example, if your ad was seen 1,000 times and received 10 clicks, your CTR would be 1%.
7. Website traffic
Website traffic is one of the most important metrics for any website. It tells you how many people are visiting your site from organic search and how they’re finding you.
This KPI is important because it can be used to gauge the effectiveness of a website’s marketing campaigns and to track the progress of a website’s overall traffic growth
Website traffic KPIs can show how well a website performs in terms of the amount of traffic it receives.
This can be useful for assessing the effectiveness of marketing campaigns, or for troubleshooting issues with the website itself. Traffic KPIs can also help to identify opportunities for growth and expansion.
How to increase your website traffic
There are a number of ways to improve a website’s traffic KPI.
One is to increase the number of visitors to the site. This can be done by optimising the site for search engines, using social media to drive traffic to the site, and using other marketing techniques.
Another way to improve a website’s traffic KPI is to increase the amount of time that visitors spend on the site. This can be done by providing interesting and relevant content, making it easy to navigate the site, and ensuring that the site loads quickly.
8. Social media engagement
Social media engagement is the process of interacting with other users on social media platforms. This can include liking, commenting, sharing, and other forms of interaction.
Engagement is an important part of social media, as it helps to build relationships and create a sense of community. As the world becomes more and more digitised, social media engagement is becoming increasingly important for businesses.
Not only is it a great way to connect with customers, but social media can also be used to build relationships and connect with potential customers. Social media engagement can help businesses in many ways.
It can increase brand awareness, build customer relationships, and generate leads. It can also help businesses to connect with their target audience, understand their needs and wants, and create valuable content that resonates with them.
In addition, social media engagement can help businesses to build trust and credibility and to establish themselves as thought leaders in their industry. Ultimately, social media engagement can help businesses to grow and succeed.
According to a report, 97% of marketers currently use social media in their business, and 83% say that social media is important for their business.
However, social media engagement is not always easy to achieve. In fact, according to the same report, only 42% of marketers say that they are able to measure their social media ROI.
This is where social media analytics comes in. Social media analytics is the process of measuring, analysing, and interpreting data from social media platforms.
This data can be used to understand how people interact with your brand on social media, what content resonates with them, and how you can improve your social media strategy.
There are a number of different social media analytics tools available, but one of the best tools out there is Porter metrics.
How to increase social media engagement?
There are a number of ways to use social media to increase engagement and reach potential customers. Here are a few tips:
1. Use content to engage with potential customers
Content is a great way to engage with potential customers and get them interested in your business. Create content that is relevant to your industry and target audience, and share it on your social media channels.
Make sure to include a call to action in your content, so that potential customers know what to do next. For example, you could include a link to your website or a landing page where they can learn more about your business.
2. Use social media ads
Social media ads are a great way to reach potential customers who are not already following your business. Target your ads to people who are likely to be interested in your products or services, and make sure to include a call to action.
3. Host a contest or giveaway
Contests and giveaways are a great way to increase engagement and reach on social media. To host a contest or giveaway, start with a prize that will appeal to your target audience.
Next, create a post promoting the contest or giveaway and include clear instructions on how to enter.
Be sure to promote the contest or giveaway across all of your social media channels to maximise reach. Finally, select a winner and announce it on social media.
9. Email list growth
Email list growth is a key metric for digital marketers. A growing email list means more new leads, and more opportunities to convert those leads into customers.
There are a number of different ways to measure email list growth, but some of the most important metrics to track include the number of new subscribers, the rate of growth, and the unsubscribe rate.
By tracking these KPIs, you can better understand your email marketing campaign’s performance and make necessary adjustments to improve results.
How to track your email list growth
There are a few ways to measure email list growth. One way is to track the number of new subscribers over time. Another way is to track the number of people who unsubscribe from your list.
Finally, you can also track the number of people who open and click through your emails.
10. Bounce rate
Bounce rate is a digital marketing metric that measures the percentage of website visitors who leave the site after viewing only one page.
A high bounce rate indicates that people are not finding what they’re looking for on your site, or that they’re not engaged with your content.
If you want to improve your bounce rate, you can do a few things, such as optimizing your website for search engines, improving your content, and making sure your website is mobile-friendly.
How do I lower my bounce rate?
There are a number of ways to lower your bounce rate, and which method you choose will depend on your specific situation.
However, some general tips to keep in mind include making sure your website is fast and responsive, ensuring that your content is relevant and engaging, and making it easy for visitors to navigate your site.
By taking these steps, you can help ensure that more visitors stick around on your site, ultimately leading to more conversions.
How to measure bounce rate
To measure the bounce rates on your web pages, use Google Analytics. The new version of Google Analytics has replaced ‘Bounce rate” with “Engaged Session”.
This new version is called Google Analytics 4 or GA4. For a session to qualify as engaged, the site visitor must do one or more of the following:
- Actively engage with your website for at least 10 seconds (this can be customized for up to 60 seconds)
- Fire at least conversion event
- Have at least two pageviews
To measure bounce rate in GA4, you have to calculate an SEO metric called, “engagement rate”.
Engagement rate = engaged sessions/total sessions
How to set realistic digital marketing KPIs
Setting KPIs (key performance indicators) allows businesses to track progress and measure success. However, with so many different metrics available, it can be hard to decide which ones to focus on.
You must set S.M.A.R.T. goals for digital marketing if you want to achieve success:
S – Specific: your goals should be clear and concise
M- Measurable: your goals should be measurable so that your progress can be tracked
A- Achievable: your goals should be realistic and attainable
R- Relevant: your goals should be aligned with your brand
T- A timeline should be attached to your goals
Measuring digital marketing KPIs: How to get started
Digital marketing KPIs can be a great way to measure your success and track your progress. However, it can be difficult to know where to start. Here are a few tips to help you get started:
1. Figure out what you want to measure.
What are your goals for your digital marketing campaign? What do you want to improve? Once you know what you want to measure, you can choose the appropriate KPIs.
2. Collect the data.
There are a variety of ways to collect data on your digital marketing KPIs. You can use reporting tools, surveys, and customer feedback forms.
3. Analyse the data.
Once you have collected the data, it’s time to analyse it. Look for trends and patterns. Try to identify what is working well and what needs improvement.
4. Take action.
Based on your analysis, take action to improve your digital marketing KPIs. Implement new strategies and tactics. Monitor your progress and make changes as needed.
Track your email marketing KPIs with Porter
Top 10 digital marketing KPI metrics (summary)
To measure the success of your digital marketing efforts, you must measure your KPIs. However, there are so many metrics to choose from that it can be hard to know where to begin.
That’s why we’ve compiled this guide on measuring digital marketing KPIs, complete with a list of the most important metrics to track and a report-generating tool.
With the right KPIs, you can align your digital marketing activities with your company’s overall goals and determine what’s working (and what’s not).
In a nutshell, the Top 10 digital marketing KPI metrics include:
- Cost per lead
- Conversion rate
- Pageviews
- Customer lifetime value
- Cost per action
- Click-through rate
- Website traffic
- Social media engagement
- Email list growth
- Bounce rate
Frequently Asked Questions (FAQ)
1. What KPIs should small businesses measure in digital marketing?
Small businesses should measure their cost per lead, website traffic, conversion rate and social media engagement.
2. How do you create a KPI in digital marketing?
To create a KPI, you need to have a goal. Setting SMART goals is key to creating a digital marketing KPI.
3. Is click-through rate a KPI?
Yes, click-through rate is a KPI for digital marketers. Click-through rate (CTR) is a metric used to measure the success of online advertising or email marketing campaigns.
4. What are digital marketing metrics and analytics?
They are metrics that help digital marketers or business owners to measure the success of their digital marketing campaigns.
5. How do you measure digital ad effectiveness?
The best way to measure your digital ad effectiveness is to track your cost per lead, click-through rate, and conversion rates.
