Nowadays, digital marketing KPIs metrics are used almost by most of the companies that work with digital marketing. It helps you to measure your digital marketing results and why should you go for this or that way. In this article you will find a little bit more about KPI definition, why you should use it and 7 examples of KPIs that you can use in your campaign.
To really know what KPI is, how it really works and how KPI can help or business to get the profit, we need to start from the bottom. The first thing is to figure out what digital marketing is, since the KPI is insert here. So, let’s start our quick guide to help you!
What digital marketing is?
As we already told you in another article (you can find the link in the end of this article), digital Marketing basically is the component of marketing that uses internet and online tools and technologies to promote products and services. One of these tools that digital marketing better use is the KPI.
Since the 90’s, this kind of marketing is growing up a lot by the time, being fundamental if you want to be competitive in the marketing and reach your success. It changed the way that publishers, clients and almost everybody involved in the process look at the advertising world.
Now that you know better the definition and the use of digital marketing, we can go deep in the KPI subject and figure out how can we apply this strategy on our digital marketing and which benefits it can bring to us and how. So, let us talk a little bit more specifically about the KPI.
How KPIs works on digital marketing
KPI mean Key Performance Indicators, so, as the name says, it is a metric that, when good used in the digital marketing strategies, helps you to measure your performance, how good you are achieving your goals and if your results are being met.
In other words, KPI are key indicators to measure your results in a quantitative way. Using it in a correctly way, you can do some key actions to keep you in control over your campaign, for example:
- Measure the performance of some process.
- Compare your currently results with the imposed goals that you defined.
- With all these informations, you can work better with your numbers, as doing graphics, for example.
And why should we use KPI?
As digital marketing working alone can use many tools to work and bring a lot of information, these results can be visualized in a slow and more complicated way. Here enters the KPI and its strategies. As we introduced before, KPI bring you some succinct, relevant and clear informations, and naturally it is much more likely and easier to understand and work on it.
Despite that, probably your best competitors are using and enjoying the KPI benefits, so, naturally, if you do not actualize yourself and your campaign, you can easily get left behind. Work hard on a good strategy to define your KPI and improve your profit.
And which strategies choose?
This question does not have just one correct answer. As almost everything that includes digital marketing, metrics, business and results, the best strategy to you will depend on many factors, as your target, your goals and your segment.
The most important thing is to know what you really want to achieve and know your target, how they act and feel, and why you should do something this or that way.
But, of course, we can name some of the most useful ones:
1. Conversion rate
Conversion rate is probably the most common KPI, and it is completely comprehensive. Everyone wants to know how many people frequently access your website and became a potential consumer. This is what strategy gives to you. It indicates the percentage of impacted people by your content.
The ROI, or Return on Investment, is one of those strategies that almost every company should use. It shows you how much some action, campaign or department is generating, so you can compare this result with your initial investment and better calculate your profit.
3. Customer satisfaction
Of course, as the name says, this strategy measures the percentage of satisfaction that your target is facing with your campaign. This is extremely important, because using it you can always guarantee your clients satisfaction.
4. Profit margin
This strategy is used to measure how much profit you are getting in comparison on what you invest. Obviously, if it costs you more to generate the revenue than the revenue you generate, something in your business are wrong.
The CPM mean cost per thousand impressions, or easily explaining, it is a strategy that you will measure how much you spend for each thousand views.
6. Sales conversion rate
If you are focused on the number of sales that you do on your website, for example, this is one of the most useful strategies you can choose. It measures how many sales you do and cam compares on how many sales you did last three months, for example, and helps you a lot on keep always on control of your sales.