Metrics and KPIs are an essential part of any marketing strategy. By setting specific goals and tracking progress against them, businesses can make sure that their marketing efforts are delivering the desired results. Having KPIs in place also allows you to benchmark your performance and know how near or far you are from achieving those objectives. As a reputed digital marketing agency in Melbourne, we share useful insights on setting the right digital marketing goals and KPI:
- Decide what you wish to achieve:
It is important to remember that not all digital marketing metrics and KPIs are created equal. In the digital age, some traditional measures such as page views and visitor rates are not as informative as they used to be. A more useful approach is to compare traffic on days when you have a marketing event with conversion rates on those days. This can help you understand what is working and inform your strategy for future campaigns.
- Review existing goals and KPIs:
Digital marketing metrics and KPIs are essential for gauging process and success. It is worth to evaluate your existing KPIs so that you can keep the relevant ones and do away with irrelevant ones. Set up an evaluation framework — it could be a spreadsheet that contains the criteria for KPIs or measures. This will help you to quickly review all KPIs.
- Set metrics:
When setting digital marketing metrics and KPIs, it is important to establish a success metric for each one. This will give you a clear way to measure progress and determine if the team meets the goal or not. The metric you set should be challenging but at the same time realistic. Take available resources and timeline into account when setting metrics.
Make sure the KPIs are SMART. This stands for:
- Specific: Be clear about what each KPI will measure.
- Measurable: It must be measurable to a defined standard.
- Achievable: It should be something you can deliver.
- Relevant: Your KPIs should not be vague, rather they must measure something that improves performance.
- Time-Bound: It can be achieved within an agreed time frame.
- Managing KPIs:
When you are setting up KPIs, it is important to consider how you will capture the information you need. Different KPIs require different data sets, and some might require access to different systems. Make sure you establish who will collect the data, and how often they will do it.
Some important things to know:
- Vanity metrics: Vanity metrics are analytics statistics that can be measured but they do not represent a true return on investment. The number of social media followers or the number of views on a promotional video are vanity metrics. It can be tempting to dismiss vanity metrics as something not important but vanity metrics can help marketers learn more about their target audience.
- Conversion rates: Conversion rates are a key metric for any business and can be used to measure the success of different marketing and sales activities. There are a number of different conversion rates that can be tracked, including keyword conversion rates and funnel conversion rates. Each of these provides valuable insights into the effectiveness of your lead generation and sales strategy. By tracking conversion rates, you can optimise your marketing and sales efforts to maximise leads and sales. In addition, conversion rates can be used to measure the ROI of different marketing and sales activities.
- Revenue: Understanding your company’s revenue is critical to making informed business decisions. There are a variety of factors to consider when evaluating revenue, such as subscription length, lifetime value, average order value, customer retention rates and cost of customer acquisition. Having a clear understanding of these metrics will allow you to make data-driven decisions that improve your bottom line.
Looking for custom digital marketing metrics and KPIs?
At Incrementum Digital, we understand that every business is different and this is why we offer tailor-made digital marketing strategies so that you can meet your specific marketing goals. From ideation to creating a roadmap for its implementation, we help businesses to stay on track to achieve their marketing goals. Our team has extensive experience in all facets of digital marketing, and we will use our expertise to help you grow your business. Contact us today to know more.
