When it comes to digital marketing, good news is that it can almost be measured. We can collect data from all sorts of sources. Such are Google Analytics and certain software for data automation. But all the world’s data are useless if they do not correspond to our goals.
What are KPI’s Marketing?
In the simplest sense of the word, KPI is a shortcut to “Key Performance Indicator”. Observed from the perspective of marketing, KPI is a value that can be measured. The marketing team uses them as a way to measure and monitor the effectiveness of marketing campaigns across all marketing channels. If we want to measure sales performance, we can divide total sales with total leverage. By following the true leaders, we can make smarter marketing decisions.
There are many KPI’s that one marketer can measure, but there are several that stand out.
1. The Return of a Digital Marketing Investment – ROI
Is this what I’m doing at all? Failure to measure this metric is a reason for the breakdown of entire marketing departments and the dismantling of key marketers. It shows if the campaign in which we have invested returns the invested money, and earns more money than it has invested.
2. Website Conversion Rate
Our website can be a very good resource for attracting new customers and can help us transfer them through the sales funnel. Web conversion is the number of people who have done the covert action on our website. We can measure this through the number of filled out forms, phone calls through the website or email.
3. Cost per lead – Cost per lead
A number of leaders themselves do not tell us anything and do not necessarily mean that we have achieved success. The CPL or the cost per lead – from a source is a great metric to measure the costs we have made to get a leader, and keep that cost as low as possible in order to have a higher margin of profit.
4. Revenue per Lead
On the other side of the matter, apart from measuring the cost per leader, we need to measure how much income each leader brings. This is a good metric because it allows us to anticipate future sales based on expected website visitors or conversion rate. The most beneficial benefit of this metric is that we can see from which sources we get the lucas that bring us the biggest revenue to reinvest in those channels.
5. Percentage of sales as a consequence of digitization
Although this metric is rarely encountered, the increase in the percentage of sales as a degree of digitization can be just the reason that justifies marketing investments, and it will likely bring us more resources in the department in the future.