Digital Marketing Metrics & Performance Indicators That You Should Be Tracking
Highlight: The KPIs come from different types of social media platforms, web analytics tools, and PPC tools as well as the marketing automation and lead conversion tools that you use.
Metrics are essential for you to track the output of your digital marketing efforts. That equips you to plan for better campaigns.
Every company these days makes use of different kinds of digital marketing efforts. And it is a continuous journey of experimentation, measurement, and optimization. Unless these activities are regularly tracked, it won’t be possible to know if they are working or not.
Using key performance indicators or KPIs has become so much important as they help to improve and scale digital marketing efforts properly.
What is Digital Marketing KPI?
The “key performance indicators” or KPIs are quantified reporting of the output of your marketing efforts. They help you to analyze the functional efficiency or the performance of your activities. Whether you are trying to measure the sales figures or the performance of your individual products, you can certainly use KPIs to your advantage.
The digital marketing key performance indicators are intimately connected to the digital marketing strategy that you have in place. These metrics and KPIs help you to measure several components associated with digital marketing, such as search engine optimization methods, lead generation, sales growth, and brand awareness.
The data that is used for working with key performance indicators can be greatly varied and include website traffic, online sales revenue, SERPs, page conversion, the overall conversion rates, marketing qualified leads (MQL), rate of engagement, and total revenue, just to name a few.
The KPIs that you use for your business can come from different types of social media platforms, web analytics tools, and PPC tools as well as the marketing automation and lead conversion tools that you use.
Benefits of tracking the key performance indicators
When you track your key performance indicators, you get to have a better idea of what is working for you and what is not. Using the KPIs lets you know which marketing efforts are fruitful for you, where you should improve and what marketing strategies you should further invest in.
You can use tools such as Google Analytics to see which channels are bringing you maximum customers and which ones are not really providing you with sufficiently good results.
Common types of key performance indicators that you need to track
1. Search Traffic
The search traffic metrics include a number of components such as unique visitors, total visits and organic traffic. The other units measured include total website visitors, page views for every session, top pages, traffic sources by channel, traffic sources by geography, age and gender-wise classification of visitors.
Numerous other customizable KPIs can be defined based on your strategy and focus. These are associated with the traffic that you are getting from Google as well as other notable search engines.
2. Conversion Rate
Through the conversion rate metric, you can measure how many visitors are eventually turned into leads, and how many of these leads are then converted into customers. While it functions as a typical marketing KPI, you can use this for any other type of business task as per your needs.
The backlinks form a crucial part of any search engine optimization project. This key performance indicator lets you effectively track the other sites that are linked to yours. When you combine this with the other search traffic KPIs, it shows you how the links actually impact your traffic and overall SERP rankings.
4. Keyword Rankings
The Keyword Rankings performance indicator can tell you which of the chosen keywords and phrases that you are using generates the best ranks for your business. This can also help you to determine the essential ways in which you must upgrade your SEO efforts to obtain the best results. There are free tools such as the Keyword Rank Checker, and enterprise-grade tools with greater functionalities that come for a price.
5. Bounce Rate
If a visitor lands on your website and then moves away immediately, it is described as a bounce. Bounce rate, therefore, measures how many people are diverting away from your site. It lets you identify pages that are not sticky enough to hold the attention of the visitors and make them navigate deeper. This metric helps you make important changes so that the visitors stay longer.
6. Domain Authority / Page Authority
Domain Authority (DA) is an SEO concept—a KPI that helps you to calculate the authority of your website and its pages. DA is measured on a scale of 1-100.
There are various tools such as SEMrush and Moz that can help you calculate the DA of a website and its pages. It lets you know how search engines view your website and give importance and value to your content. Page Authority is a similar measurement that is done on a per-page basis.
7. Customer Lifetime Value (CLV)
The Customer Lifetime Value or CLV defines the overall revenue that is generated by a standard customer over the years. This can help to decide on the value of a customer for the business.
8. Return on Investment (ROI)
The ROI is calculated to understand the business returns that you have invested in getting customers for your business. Through this metric, you can understand whether you are gaining any profit or not or the amount of profit you have after the initial investments.
9. Customer Acquisition Cost
Customer Acquisition Cost is basically the amount that your business has to invest for getting a new customer. The channels for such efforts can be advertising and other channels that get customers interested in your business.