Determine your goals to determine your Key Performance Indicators (KPIs)
October 19, 2016
By Eric Hammis, courtesy of 3Sixty Interactive
Online marketing has become a very sophisticated process in the last decade, with many new analytics and resources available to digital marketers. It now takes constant measuring, and that’s because of the high level of competition in the digital space. But there are ways to get a step up on the competition. It just takes a little more digging.
When I say digging, I don’t mean researching more content for your resource. I mean digging into your own digital marketing plan to see what is and isn’t working.
How can you determine what is and isn’t working?
We take a look at what is called Key Performance Indicators, or better known as KPIs. These little guys will tell you exactly where things are thriving and where things are falling short in your overall marketing funnel. In order to determine which KPIs to focus on, you have to determine your goals. Your goals can include such things as increasing brand awareness to increasing sales. Once you’ve established your list of goals, you will then have a better understanding of what KPIs you should be focusing on.
So let’s take a look at a few common goals and see what KPIs will give you a clear picture if you’re hitting those goals.
Goal: Increase Traffic to Site
The traffic to your site is vital, which means it’s most likely going to be a huge goal, assuming you have a website, of course. So here are some KPIs that should help you determine why or why not you’re generating good traffic.
- Number of website visits daily, weekly and monthly
- Bounce rate and time on site
- Percentage of returning visitors
- Social media interactions
- Conversions on ads
If you’ve got low traffic and the numbers are low on any of these KPIs, then you can narrow down where the changes needed to be made.
Goal: Increase Revenue
If you’re offering a product or service, increasing revenue is always a goal, and is probably No. 1 on the list. So it’s important to set and review the right KPIs for this goal on at least a monthly basis.
- Traffic generated
- Cost per lead
- Inbound marketing ROI
- Traffic-to-lead ratio
- Lead-to-customer ratio
- Landing page conversion rates
There’s a rather large smorgasbord when it comes to KPIs on your site, so you have to narrow it down. The only way to do this is by determining the top goals for your company. Once you’ve determined these goals, you can then break down the goals into particular KPIs that will help you reach these goals.