Digital marketing kip (Key performance indicators) are like a map for the small and medium size businesses online. If a business does not measure its performance it’s hard to tell whether things are going in a positive or a negative direction, just like a traveler without a map cannot know if he is getting closer or farther from his destination. Knowing what to measure is just as important, if not more, as how accurate is your measure. Here are four major groups of digital marketing measures (KPI) that should be monitored by a business wanting to optimize its digital marketing strategy.
Marketers know the branding is that weird thing, that it hard to measure and know if it’s improving until a brand reaches a point, one knows it is powerful, and then it is so easy to identify – one should just think about the symbol called swoosh(you might even don’t even know it’s called swoosh) but it’s recognizable immediately – Yeah, that’s Nike. Online, brands are developed in many different ways, but there are certain measures(KPI) that can help a company track it’s brand exposure.
- Website visits – The number of unique visitors(first-time visitors) to your website. If the number is low and downward trading you should modify your digital marketing strategy or turn to a professional digital marketing agency.
- Returning Visitors – following how often the prospects, are returning to your website. If the number is low, you need to improve your value proposition: what is the generated value from visiting your website(information, promotion, e-book, etc.)
- Sign-ups – how many people chose to register for your web-site.
- Time on spent your website – time spent on your web-site is brand exposure, but make sure your page influences visitors to spend more time and enjoy their user experience.
Brand to Action
Now that you know how popular is your brand online, how many of your website’s visitors are actually influenced to act on your offerings, whether – to buy, download or share?
- Downloads – If you are offering a free gift(e-book or a report) in exchange for a registration to your website, how many of the registered users are just one-time for-the-gift visitors?
- Buys – Is your offering strong enough to convince people to buy?
- Shares – If visitors to your website are sharing your content, this a good indicator that they find it valuable and engaging.
- Feedback – Another key aspect for any business is to make sure customers are leaving positive feedback after their purchase. If the feedback is negative there is a need for product improvement, and if there is not enough feedback then the customer should be stimulated to leave a feedback.
Sales and Marketing Metrics
There is no reason to have a full restaurant if no one is ordering. Despite the positive outcome from having a positive brand exposure coming from your website visitors, how many of those visitors are actually taking the next step to buy your product or service. Here are some of the metrics you should keep on eye on.
- Conversion rate – If your web-site was a brick and mortar store how many of the visitors that entered the premises of the store actually bought something?
- Cost per acquisition – how much it cost to attract each new buyer?
- Revenue per customer – How much each customer is spending on your web-site.
- Search Engine Ranking(SER) – if you are fortunate enough to be among the first 3-5 search results you are in business, otherwise you have to work on your digital marketing strategy.
- Sales Forecast – What are your sales projections?
- Klout rating – On the score from 1 to 100 how influential are you online. The more influential the higher the score.
- Market Share – How do you compare in terms of sales against your competitors.
As any business owner tell – “we are business to serve the customers” – if there are no customers there will be no business. Below are some key metrics that any business should track to make sure the quantity and quality of it’s customers are constant.
- Customer retention rate – Successful businesses are not only able to convince their customers to buy but they are also good in making them return and buy again.
- Customer Lifetime Value (CLV) – If it cost $20 to acquire a customer and his estimated lifetime spending on your website is $30. He is considered a profitable customer. Similar profile customers are then considered attractive to acquire.
- Customer turnover– how many of your regular customers are leaving over time? See the link on how to calculate
With these digital marketing kpi in hand, a business knows what to monitor to ensure it’s success online. As is the case with the quality control cycle, so it is with successful digital marketing strategy – it all comes down to four things: Plan, Do, Monitor, Fix.
If your business needs a professional help with its digital marketing strategy do not hesitate to contact us at Concept9.