If you’re launching a new website or kicking off new marketing activity, you might be wondering what the best way of tracking your investment and performance is. One way to do it is by setting up Googles Analytics to obtain desirable metrics and work towards the ultimate digital marketing KPIs for your business. You don’t just want to spend money for the sake of it, right?
Looking at Google Analytics can feel like looking at a completely different language. But don't you worry, the promising news is that we are here to help you make sense of these numbers—and apply them to your digital marketing strategies!
All our teams at Terabyte are focused on helping you achieve your business goals by providing insights into your audience, customers, and unimaginable metrics on website & app engagement. We use Google Analytics in an indispensable way to track digital marketing metrics and KPIs. It’s crucial for us to understand what you’re trying to achieve and for you to set some trackable short term and long-term goals.
What are Key Performance Indicators (KPI)?
KPI is an abbreviation for key performance indicators, a quantifiable measure of performance over time for a specific goal. Focusing on Google Analytics key performance indicators means gaining crucial insights into your website and business performance. KPIs cover a wide range of data types, including everything from page views to conversion rates. It is critical to review this data because it will keep you informed about what is working on your website, what people are responding to, where people are getting stuck, and where you can improve.
These KPIs serve as a compass for your digital marketing strategy, indicating how close or far you are to meeting your business objectives.
How to pick the best KPIs for digital marketing with effective results?
You need to identify digital marketing KPIs that are effective at measuring SMART goalsof your company and make sure you focused on them. Things like conversions impression, clicks, likes, shares, and comments are all fantastic metrics to track. This will look different to every business, but it may be eCommerce conversions, leads or enquiries. To select effective marketing KPIs, consider the following:
- What is my company's main line of business?
- What results do I need to achieve for a successful business?
- Do I want to sell more products to generate more leads or subscriptions?
Accurate answers to these queries will assist you in selecting marketing KPIs that are appropriate for your company's goals and environment. It’s important to track your main conversion goal. This will look different to every business, but it may be eCommerce conversions, engagement or behavioural. In this article, we've decided to focus on the best KPIs for digital marketing for your online marketing strategy.
Conversions KPIs
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ROI (Return on Investment)
The ultimate success metric for your digital marketing campaign is ROI, which compares the amount of money spent to the overall profit. Return on Investment is not a benchmarking statistic like the other KPIs; instead, it provides a more comprehensive view of your campaign. Depending on your business activities ROI can also be derived from cost per acquisition and customer lifetime, in a broader perspective of net return and investment.
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CPA (Cost Per Acquisition)/ (Cost per Action)
CPA (Cost Per acquisition) is a marketing metric that indicates how much it costs to move a single customer through the sales funnel, from initial contact to conversion. The action can be defined as a click, purchase, lead, or a variety of other options, depending on your marketing objective. CPA focuses on one action before a customer is considered an advocate for your brand.
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CLV (Customer Lifetime Value)
A customer lifetime value estimates the amount the customer will expend over a given period on the products or services associated with that organisation. It measures a company's customer satisfaction.
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CPL (Cost per Lead)
CPL, or cost-per-lead, is a digital marketing pricing model in which the advertiser pays a set amount for each lead generated. Businesses that sell subscription services or high-value products frequently use CPL in eCommerce.
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CPC (Cost per Click)
Cost per click (CPC) is a revenue model for online advertising that websites use to bill advertisers based on the number of times visitors click on a display ad attached to their sites.
Engagement KPIs
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Retention Rate
Retention is a marketing metric that displays how many customers continue to use your product and make recurring purchases. It allows you to see how engaged your customers are with it so you can shape the future of your business accordingly.
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CTR (Click Through Rate)
The click-through rate (CTR) in online advertising is the rate of individuals who view a web page and then click on a specific ad that appears on that page. Click-through rates assess how effective an ad was in capturing users' attention.
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Average Session Duration
Average session duration is an important digital marketing metric that measures the average amount of time a typical website visitor spends on a web page in a single session. Tracking this metric is even more insightful than tracking page views because it reveals how and where users interact with the landing page, home page, or eCommerce platform.
Behavioural KPIs
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Website Traffic
Monitor the number of visits to various page categories, such as your homepage, pricing page, blog, landing pages, and so on, in addition to the overall traffic. Use these figures to determine which parts of your website have the highest conversion rate and then apply the best practices to other pages.
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Organic Search Traffic
This SEO metric displays the number of monthly website visits generated by search engine results from Google, Bing, and others. A website's organic search traffic is often the most important metric for SEO purposes. The number of monthly visits from search engines can be used to measure website growth and identify potential weak points in a site's SEO strategy.
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Website Conversion Rate
A page may be visited thousands of times but directing paid traffic to this site is pointless if it doesn't convert. When it comes to making money online, conversion rates are key.
The digital marketing metrics and KPIs mentioned in this article are only the tip of the iceberg when measuring your digital marketing efforts. It is necessary to become acquainted with them so that you are not as surprised as the crew of the Titanic when you encounter difficulties in the open seas of business.
Want to Learn More About Your Digital Marketing KPIs?
Analytics are great for improving your marketing strategy, but the vast number of online statistics can be overwhelming. Instead, keep an eye on the proper digital marketing KPIs; your campaigns will produce the desired results.
Terabyte is a marketing consultancy that specialises in understanding your audience and finding new ways to approach them. We specialise in providing insights and analytics that help you achieve your business goals, whether that be finding prospects, increasing engagement with current customers, or uncovering opportunities for brand growth. If you want to improve how your company manages or monitors its Internet marketing strategy. Contact us today to speak with one of our strategists!