Ashlee Piga is the CEO of Lotus Digital, a B2B and B2C digital marketing and advertising company.
Your marketing strategy is only as good as the time you take to verify its effectiveness. Having the ability to identify if the goals you set have been reached or not lets you determine what needs to be used more or less and what needs to be optimized.
Key performance indicators, or KPIs, are numerical values that reflect the efforts of your marketing strategy. They also give you the information you need to make decisions that will help you make pivots when things aren’t going as well and help you celebrate all of the digital wins you’ll realize from your optimization efforts.
Many insights can be revealed through tracking these KPIs over time that will help streamline your way to success, understanding your audience better and the digital experiences that drive them to action.
Here are five KPIs that digital marketers should be tracking:
We’re all aware of the power that social media holds. Understanding if you’re producing content that’s worthwhile and valuable is crucial. Why spend more resources on developing images for a carousel on Instagram when the reel you posted last week is still gaining traction?
I firmly believe in putting forth efforts into what drives the most engagement, which is why this is an important KPI that could allow your brand to have the reach you desire. One of the biggest challenges brands face is staying relevant in the everchanging digital landscape, so it’s important to always understand your audience and what content is driving the most visibility, action and engagement. While you want all of your content to be engaging, setting realistic expectations for digital content and engagement goals is important. You should aim for at least 75% of your content to produce a 1%-5% engagement rate.
Click-Through Rate (CTR)
This commonly tracked KPI is the percentage of clicks on your link that generated impressions. Also known as CTR, click-through rates are not only important to understand how many people are seeing your message but how many people are taking action and expanding their digital experience.
This metric provides insight into a variety of marketing tactics and helps you understand how your content is resonating and evoking action among your audience. Generally speaking, a CTR over 1% is healthy. Of course, optimal CTR depends on other factors like audience, content and call to action. If you’re not impressed with what this metric reveals, reviewing historical campaign CTR gives you the opportunity to understand what is not working and implement a new strategy until you’ve reached success in this area.
The conversion. The action. The completion! This is an insight into whether your funnel is successful or not. It can be applied to almost any industry and any digital marketing tactic. If you have provided a top-notch customer journey, this KPI will most always be met. It’s not only getting the user to flow through your journey but completing it.
Your conversion rate is essentially the number of people who performed the action you presented to them divided by the total number of users who took the first action. For example, if you’re running an email acquisition campaign and out of the 1,000 people that clicked your button to sign up, 100 of them successfully provided their email (the conversion), that means your conversion rate is 10%.
This KPI is the result of how many leads were converted. Your conversion rate is a broad value that reflects how successful your marketing efforts are overall, as the following ones are more specific to different aspects of your campaign.
Keywords are still so relevant because they help represent a digital context, and search engines are designed to favor groups of relevant content—it’s why ranking is so important. The more you replicate content around core keywords and phrasing, the more likely you are to rank organically and in a favorable position.
It’s also an important KPI because this is how you are initially seen by users who are in the market for the product or service you’re offering. Determining if your web page is in the position you want it to be or not allows you to be seen by more potential customers by optimizing your keywords, page content, heading tags, etc. Staying relevant is critical, especially around content created for specific verticals, channels and industries. Always make sure to do this research upfront to save additional content development time later on.
Customer Acquisition Cost (CAC)
Another helpful metric to track during the digital journey is one that is very end-of-funnel-centric. This KPI determines the cost of the total amount it took to turn a user into a customer, and it’s oftentimes a metric that is used in paid advertising analysis. Quite simply, your CAC is calculated by dividing the total marketing investment by the number of customers acquired.
This digital marketing metric is widely used across e-commerce, retail and B2B organizations, and it’s oftentimes the single most important stat when deciding how effective a campaign is at returning revenue-generating customer acquisition. Obtaining this percentage is essential to budget more efficiently in the future and lets you see where you should heighten or lessen your resources. Tracking CAC across your digital marketing campaigns can help you determine the scale of your advertising efforts compared to the customers you’re acquiring.
Ultimately, setting clear business objectives and measuring and adjusting progress toward them along the way will put your brand in the exact space you want it. These five important digital marketing metrics will keep you on the right track to sustainable content development and publishing. Consistently measuring your digital progress is a realistic way to eventually meet each goal you set for your business. Intervening when necessary to achieve your ideal KPIs is a reassuring way to optimize your marketing strategy to stay current and deliver the content and experiences your audiences are looking for. And while it’s important to set goals and create benchmarks, don’t forget to have fun with your content.