What is KPI Marketing? You often hear about the term “KPI”, but almost still do not fully understand it, right? Right here in this article, I will analyze KPI especially KPI in Marketing so that you can see its importance and perform well.
Come on, let me find out about KPI Marketing right below.
I. What is KPI?
1. KPI concept
First of all, you need to understand what is KPI.
KPI in English is the Key Performance Indicator, which is an indicator of job performance. In other words, KPI is a measurement tool to evaluate the effectiveness of the work, all expressed in data, ratios, and quantitative indicators. KPI is an indicator that shows the level of accomplishment of the goal of the business, a division of the business, or an individual.
KPI is the main goal that the organization, each team, and individual targets and implements, then tracks the progress toward that goal. Typically, each department and each individual will have a copy of the goal to do the job.
KPIs for each business, department, and individual will be different. Based on the completion of the KPI, the manager can evaluate the performance of each department and individual.
Can understand more clearly, KPI is the basis for managers to evaluate the performance of each department, each individual most accurately.
2. KPI benefits
KPI is highly quantitative and can be measured in a very specific way. Therefore, KPI also brings many benefits. Specifically can be mentioned as follows:
- Can be used for many different purposes: managing the business system of a business, managing group or individual jobs.
- Help measure the performance of each individual, department, and the whole business compared to the set goals.
- The assessment of job performance is clear, transparent, specific, fair, and effective.
- Management levels can easily evaluate employees through KPIs, thereby easily rewarding and motivating employees to strive to work.
- Help employees perform their responsibilities, identify the specific work they need to deploy and arrange the work according to the priority level to deploy and achieve goals.
- Shape and develop goals in-depth, specific, and clear to each individual.
II. Types of KPIs
1. Features of KPI (Smart)
In order to effectively implement KPI, you need to know the characteristics of KPI, through SMART. KPIs need to show SMART criteria. As follows:
- S – Specific: The KPI needs to be specific and clear.
- M – Measurable: The KPI must be measurable.
- A – Achievable: The set KPI needs to ensure that it is achievable.
- R – Realistic: KPIs need to be realistic, considering the factors that can affect the ability to accomplish goals.
- T – Timebound (There are specific timelines): KPI must have specific timelines by year, quarter, month, week…
2. Two main types of KPIs
Actually, there are many different types of KPIs, I will guide you to divide KPIs into two main types: strategic KPIs and tactical KPIs.
How to understand?
- Strategic KPI: In this section, the goals of the strategic KPI will refer to aspects such as money, profits, market share… factors that directly affect the survival of the business.
As a specific example, a strategic KPI is that businesses must achieve revenue of 100 Billion Dollars in 2020.
- Tactical KPIs: Strategic KPIs include small, clear, and detailed activities to help businesses achieve big goals step by step.
For example:
KPI of Email Marketing, click rate must reach 1000 clicks/10000 emails sent. Although this KPI does not guarantee the business can achieve KPI in terms of revenue or not.
However, getting more clicks on the link will increase the user’s ability to find out about information and services. Since then increased conversion rates, have increased sales.
The strategic KPI will be for you at the management level (Directors, Managers). The Directors/Managers are the creators of the tactical KPIs, divided among the divisions and individuals below.
When setting a strategic KPI and tactical KPI, it is common to encounter the following situations:
- Strategic KPIs are achieved, but Tactical KPIs are not achieved.
It could be due to the following reasons:
Your current tactical KPI is set up and not worth contributing much to the strategic KPI.
Tactical KPI is not set correctly, the goal evaluation is incorrect.
- In addition, when placing the tactical KPI, there are also situations such as the strategic KPI not being achieved, it is too far. As such, you may be experiencing the following:
Tactical KPIs are set too ambitious, and not guaranteed to be realistic.
Staff are not strong enough to accomplish the goals.
As such, the strategic KPI must be set towards the success of the strategic KPI. And furthermore, KPI guarantees guaranteed tactics for the proper implementer.
These KPIs are set out and the results bring about positive changes to the operation and development of the business.
III. KPI in Marketing
The next section here in this article, will probably be the part you expect. Below, I will point out the specific KPIs in Marketing that you need to have.
A. Lead Generation
Andy Nelson, Marketing Manager for Growth at Moz, once said: “Focus on giving potential customers real value in the form of free tools or content before you ask them anything.”
To evaluate whether your prospect-building tactics are paying off, track the cost-effectiveness of your leads and attract customers. Track your lead generation metrics to see if your marketing efforts are on track. Here are the customer creation metrics:
1. New potential customers monthly
This widely used benchmark shows the number of new leads gained in the past month. A new lead can be a free trial subscription or create an account on your online retail website.
How to measure: Use piping management software to get the latest data as well as filter potential customers by day to see the number of new leads in a specific time period.
How to improve: Increase budgets for cost-per-click advertising campaigns, create SEO-optimized content through search engines, and try new marketing tactics like social media campaigns Short-term deals, and temporary discounts.
2. Prospective customers are eligible every month
Tracking the number of qualified leads shows whether your marketing campaigns are effectively focusing on targeted leads or generating traffic only, not potential audiences of yours. Potential buyers may be categorized into three groups:
- Qualified marketing prospect (MQL) – the prospect that the marketing team evaluated and decided to transition to the sales team.
- Acceptable leads (SAL) – prospects that the sales team has accepted and will continue.
- Qualified sales leads (SQL) – customers that salespeople assess as leads, leading to increased attention and turning leads further into the sales cycle.
How to measure: Categorize all potential customers in your sales funnel with CRM software. Filter leads by card and date to see the exact number of monthly leads in each eligible category.
How to improve: Create highly targeted campaigns to reach the right audience, forming a clear value proposition to avoid misunderstandings.
3. Cost of creating each lead
Every marketer should keep track of the KPI that builds this prospect. Cost per prospect shows the cost of getting a new lead.
Combined with cost-per-conversion metrics, you can evaluate whether different marketing activities are paying off the effort, time, and resources spent to attract new potential customers.
How to measure: Summarize the time, resources, and money spent on marketing activities and compare results with the number of monthly leads.
How to improve: See what types of free and paid campaigns work best for you and increase your budget and usage time. Create and share quality content on social media to get (almost) free website traffic and new leads.
4. Cost per conversion
This KPI marketing shows how much it costs to get leads converted into paying customers. Although an advertising campaign can generate hundreds of potential customers for you, usually less than 2% of them turn to one customer.
If the cost per conversion is less than the value of the customer lifecycle, your marketing strategy will waste resources instead of making a profit.
How to measure:
Depending on your lead conversion time, it’s useful to track this metric over a two-month period (because it takes time for leads to convert). Calculate monthly costs of time and resources spent on potential acquisition sources, i.e., AdWords campaigns, blog content, social media management, etc.
Next, use your marketing or CRM tool to see the number of potential customers that month from a specific source that has converted into paying customers since they entered your sales funnel. Divide the total monthly cost of a lead by the number of conversions to see how much it costs to get a new customer.
For exact cost-per-conversion metrics, track different marketing channels separately. In this way, you find the most valuable sources and can focus your energy and resources on expanding these channels.
How to reduce:
Create highly targeted marketing campaigns. Improve the user experience of your service or product, provide help documentation, and setup instructions.
Important! When managing PPC advertising campaigns, always measure your cost per conversion instead of cost per click, impressions, and other frivolous metrics.
B. Website
The KPI you follow should provide guidance to improve your marketing performance. A common goal of website-related marketing is to increase conversion rates and traffic to your landing page.
5. Monthly website traffic
In addition to overall traffic, track visits to many page categories like homepage, price page, blog, landing page, etc. Use these metrics to evaluate which parts of your website are conversion rates and apply best practices to other sites as well.
How to measure: Use Google Analytics to see the monthly traffic of all your websites.
How to improve: To increase your website traffic, you can spend more on paid advertising (cost-per-click) or create SEO-optimized content to get regular visitors. via the results of the relevant search engine. See instructions for increasing organic website traffic by Scoro Digital Marketing Manager, Karola Karlson.
6. Returning to new visitors
By measuring the rate of return visitors, you’ll see how your audience is appealing. For example, a low payback rate on a blog site may indicate that your content is not compelling enough for people to come back for more.
How to measure: Use Google Analytics to get insightful data about your site’s audience, including new and returning visitors.
How to improve: Provide useful information on your blog and landing page; use remarketing ads to remind previous visitors about your brand and offers.
7. Visitors on each channel
Understanding the sources of inbound traffic helps identify the most beneficial marketing channels. If you’ve recently run a paid ad campaign, you can gauge your performance by looking at the amount of traffic (and potential customers) it has brought.
How to measure: Use Google Analytics to track monthly website visits on each channel. Set up ref codes for paid campaigns to get a complete overview of the traffic they generate.
How to improve: To increase paid traffic, create ads with compelling images and convincing value propositions. For organic traffic, improve your SEO by linking your websites and providing useful content. For higher social media traffic, increase your followers and share more interesting posts.
Consider tracking visits from digital marketing channels such as social media, referrals, email marketing, and paid search.
8. Average time on page
This metric is especially important for organic search traffic because Google ranks pages based on their relevance. If a visitor leaves your site right after arrival, the search engines will know that what they see is not what they are looking for.
The higher the average time on the site, the more likely you are to rank well on search results and convert more visitors into leads.
How to measure: Use Google Analytics to track the average time on the page of all page categories like homepage, blog, landing page, etc. Use the Google Analytics browser extension to access data on the monthly visits of a page, average time on page, and more.
How to improve: Provide more engaging and useful content, adding information to your pages. Complement your landing pages with colorful images for organized and readable text.
9. Website conversion rates
A page can be accessed thousands of times. But if it doesn’t convert, then it’s useless to dominate the paid traffic for this site.
How to measure: Google Analytics gives you a great overview of every conversion rate for the page.
How to measure: Google Analytics gives you a great overview of all ratios. How to improve: Testing every month can improve your landing page conversion rate – change CTAs, add images, or change your paragraph. Access over 100 site conversion tips improved by Kissmetrics. change the page.
10. Conversion rate for call-to-action content
If you have created websites or content with a clear call to action, you should measure whether these conversions are good or not.
This marketing metric is especially useful if you use pay-per-click campaigns to drive traffic to specific pages. By comparing the cost per conversion and customer lifecycle value, you can evaluate the sustainability of your CTA content.
How to measure: Once again, this KPI site can be tracked using Google Analytics. You can set up website events to track each CTA click and your content.
How to improve: Present an attractive value proposition, add more CTAs to your page and content, and test different call-to-action messages to see what works best.
11. Clickthrough rate on web pages
The CTR shows how effective your website is in getting calls to action that attract people’s attention and make them click for more information. It could be a CTA button or a link to another piece of content that the clickthrough rate you want to increase.
How to measure: Use the heat mapping tool to see specific CTA button presses. Use the Google Analytics Behavior Flow tool to see how your site visitors move around your site.
How to improve: Add all landing page links to other website content, for example, blog posts and case studies. Create CTA messages that make people want to click on them. See effective CTA instructions and another article on how to create clickable popup boxes.
12. Page every visit
Do your website visitors bounce after coming to your site, or are they interested and stay for more?
This marketing KPI shows whether your site navigation is set up in a logical order and includes a compelling call to action. Moreover, you can see if visitors are attracted to your content, which means they are more likely to come back.
How to measure: Use the Google Analytics Behavior tool to see how many pages the average visitor has per session.
How to improve: Similar to the site’s CTR, you need to include more calls to action on your landing pages and lead visitors to the information they’re looking for. Make your site as easy to navigate as possible.
C. SEO
SEO – Search engine optimization
Organic traffic from search engines is one of the most beneficial leads for digital marketers. SEO metrics focus primarily on organic traffic and get highly targeted leads.
13. Inbound link to a website (link from another website to your own website)
Measure quality links from high-page rank pages. The number of inbound links shows whether your content is shared on other websites. It can also tell if you are considered an industry expert in a particular field.
How to measure: Use SEO tools like Moz, Alexa, or SEMrush to crawl the web and see all incoming links to your site.
How to improve: Inbound links come with a reputation, so establish your brand as an industry expert to include in news, articles, and reports. Please guest blogging to receive targeted inbound links from other brand sites.
14. Traffic from organic search
This SEO metric shows monthly website visits through search engine results from Google, Bing, etc. Organic search is beneficial because it’s free and generates targeted leads.
How to measure: Check Google Analytics and Bing SEO Analytics to see how much monthly traffic comes from organic searches.
How to improve: Improve your SEO to rank higher on search engine results pages (SERP). See Neil Patel’s comprehensive guide to improving your SEO site rankings. Or browse the best marketing blogs to find out how deeply it is.
15. New potential customers from organic search
Track the number of new potential customers who find your brand via search engine queries. This KPI indicates the performance of your SEO strategy. Track this KPI as a percentage of all new leads to gauge the value of organic search for your sales and profits.
How to measure: Use marketing analytics tools like Marketo, Hubspot, and Google Analytics to track the number of potential customers coming from organic sources. You can also access this data with professional CRM tools.
How to improve: Set high-ranking priority for targeted keywords that are closely related to your service or product offer. Create an SEO strategy and export content that supports your keyword ranking goals.
16. Converting organic search terms
See how many leads from organic search convert into paying customers.
This KPI indicates whether your keywords that rank high in search engine results are linked to your value proposition. Low organic conversion rates indicate that you may have high-ranking keywords that confuse your audience and send the wrong message about your service or product.
How to measure: Use your CRM tool and categorize paying customers by the day (eg last month) and sources of leads (organic search). First, you need to find a tool that has all the necessary CRM features and many sorting options.
How to improve: Create an SEO strategy to rank highly for highly targeted keywords, see Moz’s great step-by-step guide. Next, make sure that your customer approach is effective and makes people want to sign up for your service or order your product (consider improving customer service and discounts).
17. Page Authority (the index of page rank predictions)
A high Page Authority index helps your content and landing page work well in search engine results. You can track your page rank with various SEO tools like Moz and SEMRush.
How to measure: Use the Moz browser extension, for a quick overview of all ranking indicators for a page.
How to improve: Links to pages on your site. If you have a blog series on a specific topic, make sure that all your posts are linked. Moreover, you need to get some inbound links from different domain names. See the QuickSprout guide for steps that can improve your page rank prediction score.
18. Google PageRank
This site’s metrics are calculated by Google using various algorithms to determine the importance of websites. It is based on the quality and quantity of direct inbound links to a given page.
How to measure: Use the page rank checker to see the value of this SEO metric.
How to improve: Get more inbound links to your website through guest blogging and advertising your brand to journalists. Create quality content that people want to share and link back. Fix any broken links on your site.
19. Increase the rank of target keywords
At the end of each month, keep track of how your top keyword rankings have grown. Track the number of up and down keywords to see if your SEO strategy is in the race or not.
How to measure: All SEO tools provide weekly and monthly reports on your keyword rankings.
How to improve: Research your competitors The best ranking keywords for new ideas for your SEO strategy. Find ways to get new inbound links from highly authority sites.
D. Advertising
Many businesses fail with paid advertising because they forget to evaluate their ROI. Add some KPI Marketing to your monthly Marketing overview to improve advertising and save resources.
20. Leads and conversions into customers from paid advertising
Tracks the number of leads and monthly conversions from cost-per-click advertising as a percentage of the overall results. This way, you gain an overview of your organic marketing performance.
How to measure: If you use Google Adwords, the results will be stated in your Google Analytics account. To ensure that Google Analytics keeps track of all your campaigns, set up the ref code for each campaign.
How to improve: Improve your ad copy and only generate highly targeted keywords that are relevant to your unique value proposition.
21. Cost per acquisition (CPA) & cost per conversion
Because getting potential customers and customers through cost-per-click advertising can be costly, tracking ROI is extremely important.
Compare the amount of cost per conversion to the lifetime value of your customers to make sure your campaigns are profitable in the long run.
You can also track your cost per purchase, but it costs you money per conversion reflecting the actual profit of paid campaigns.
How to measure: This KPI needs to be calculated over a two-month period because it takes time for potential customers to convert. Calculate the monthly cost of all resources, time, and money spent on paid advertising campaigns. Divide by the number of leads that month converted into paying customers.
How to improve: Target paid keywords with less competition (find long tail highly targeted keywords). Improve your landing page experience and provide helpful customer support/sales documentation.
22. Clickthrough rate on PPC ads
This advertising KPI gives you an overview of the effectiveness of your pay-per-click campaigns. If the CTR is low, that means your ad content is not attractive enough for a person to click on it.
How to measure: All advertising tools display the clickthrough rate of each ad. Collect data to calculate the average monthly CTR.
How to improve: Check out something new every month – change your Facebook ad design, improve your ad copy, change your call-to-action text, etc.
23. Social media
In a recent interview, with HubSpot, CMO Kipp Bodnar shared their important social media goals: “For society, we consider whether we are expanding awareness and reaching out to Our social media channel. Are there more people connecting with us online, or more people joining us? This will grow our community. “
Your social media efforts should focus on two core ideas: building a cohesive community and turning them into customers. See widely used social media KPIs to track your marketing performance.
24. Traffic from social media
Track this social media KPI as a percentage of all visits and follow monthly trends to understand the importance of different channels for your website traffic.
How to measure: Use the Google Analytics report for a free overview of traffic sources about your site.
How to improve: Get a large number of followers, share interesting posts, and create social media campaigns to increase awareness and get likes, share, and follow.
25. Leads and conversions from social media
While many marketers see social media as a brand awareness channel, it can also serve as a profit-making tool. Track the number of leads and monthly conversions from social media to gauge the effectiveness of this channel in your marketing efforts.
How to measure: Use your CRM tool to track all potential customers and customers with the potential source of social networks.
How to improve: See helpful resources to generate leads through social media.
26. Conversion rate
Are potential customers on your social media also potential customers, or did they accidentally click on your post just out of curiosity?
To measure the level of good targeting is building potential customers on your social media, track the number of potential customers to become paying customers. The conversion rate shows the actual ROI of your social media marketing.
How to measure: After you use the CRM tool to collect data about leads and conversions from social media, you can easily calculate conversion rates by dividing the number of customers. potential with conversion numbers.
How to improve: Create highly targeted social media campaigns, target your target audience, and improve your sales process. A / B checks your ad elements – design, copy, CTA, etc.
27. Scope of managed objects
Track the number of followers on each channel monthly to see if your audience continues to participate. Increasing followers is a sign that your social media posts attract attention and attract new people over time.
How to measure: Use a marketing tool or just check your social media channel reports to gain a better understanding of your post interaction and new followers.
How to improve: share engaging content, create social media campaigns, and ask your friends to like your page to increase awareness.
28. The rate of participation
These social media metrics show the number of people who have actively interacted with your post (share, like, click, etc.) Measure it as a percentage of your total followers.
Conclude
Above is the summary of information about KPI Marketing I want to share with you. Hopefully, you will enjoy this sharing. I hope you will apply KPI Marketing indicators effectively and successfully!
Thank You For Reading!
Read more related articles:
SEO Google Map Failed? Find Out The Mistakes Of The Marketer
