There’s a simple way to optimise your marketing, so you earn more — and maybe even spend less: track your digital marketing KPIs.
I know metrics in marketing isn’t always a sexy topic.
Maybe you think you’re not a “numbers person.” Or perhaps analytics and data-crunching make your head spin.
I get it. Still, do you know what every one of my clients does find exhilarating?
Watching their sales and profit skyrocket.
If you want better results in your business, digital marketing KPIs are non-negotiable. The good news is, KPIs for digital marketing don’t have to be as daunting as they sound.
Now, ready to get more of an ROI on marketing? Here are the metrics that matter for your business:
Understanding digital marketing KPIs
Let’s back up for a sec: What is a digital marketing KPI, anyway?
Digital marketing KPIs (Key Performance Indicators) are specific metrics tied to each of your marketing channels. KPIs measure the value of your marketing efforts; they determine the success of your campaigns and highlight opportunities for optimization.
Running a digital marketing campaign without set KPIs is like trying to fly a plane wearing a blindfold. Both in the air and in business, you need the right optics to arrive at your desired destination successfully.
KPIs might reveal you’re spending the bulk of your marketing budget on paid social media, but most of your high-quality leads actually come through Google Adwords and email marketing. After looking at this data, you might reallocate marketing funds to optimise your lead gen strategy and lower your Cost Per Acquisition. (I’ll go over this metric in more detail below.)
The digital marketing KPIs you choose will depend on your objectives. Of course, revenue-based KPIs are important. But sometimes, your KPIs are linked to engagement, lead generation, and brand awareness — all very good things, too.
Just avoid the common trap that is vanity metrics. It’s easy to get swept away in stats like social media likes and followers. However, if it’s not building your business, it’s likely a distraction.
Set SMARTER goals with effective digital marketing KPIs
Have you heard of SMART goals? The popular acronym stands for:
It’s an easy way to ensure your goals are clear and attainable, so you can efficiently track progress over time.
But why stop at SMART goals when you can set SMARTER ones?
SMARTER goals (a term coined by Hubspot) include two additional steps:
The most successful businesses realise their goals change over time, so their strategy must continually grow and evolve, too.
Digital marketing KPIs are powerful tools to help your business set SMARTER goals and keep your business on course to reach your objectives.
Without KPIs, it’s challenging to measure your ROI on marketing. Likewise, without SMARTER goals, it’s easy to get distracted by numbers and percentages that look good on paper — but don’t shift your bottom line.
Let’s take a closer look at some of the most important KPIs for any online marketing strategy.
12 Important digital marketing KPIs you need to know
It’s never been easier to track digital marketing KPIs. Depending on your marketing campaign, here are some meaningful metrics for marketing to measure:
Cost Per Acquisition (CPA)
How much do you spend to acquire each new customer?
This is your CPA or Cost Per Acquisition. I recommend calculating the CPA for each marketing campaign to understand what’s working — and where there’s room for improvement. The lower your CPA, the more effective your marketing.
Customer Lifetime Value (CLV)
Do you know the lifetime value of your customers?
In other words…
Do you know how much revenue a customer will generate over time?
Your CLV is a strong indicator of customer loyalty, brand strength, and marketing strategy.
Digital Marketing Return On Investment (ROI)
You’re probably familiar with the term ROI. For this digital marketing KPI, we’re looking specifically at the lifetime value of a customer minus the cost of acquisition.
Again, I recommend looking at the digital marketing ROI for each marketing campaign to understand your most effective client acquisition channels.
Paid Search Marketing KPIs
As the name suggests, CPC is the amount you pay per click on an ad. This crucial metric ensures you maximise clicks relative to your budget and keywords.
Click-Through Rate (CTR)
While CPC measures the cost of clicking an ad, CTR tracks the efficiency of leads going through that ad to your website. Generally speaking, the higher your CTR, the lower your CPC — and the more high-quality traffic landing on your website.
Return On Ad Spend (ROAS)
This is your ROI on paid ads or the amount of revenue earned for every ad dollar spent. A low CPC is fantastic, but if that traffic doesn’t convert to customers, you might still have a very low ROAS — which means fewer sales and less profit.
Follower Growth Rate
How quickly is your audience growing from one month to the next?
To find out, divide your number of new followers (from the last 30-day period) by your total follower count. Then, multiply that number by 100; A high follower growth rate signals that you’re sharing engaging, brand-building content on social media.
Another sign of a savvy social media strategy is a high engagement rate across each of your platforms. This could include:
- Direct Messages
- Brand Mentions / Customer Testimonials
Email Marketing KPIs
What percentage of your subscribers open your emails? If you have a low open rate, it’s an excellent time to A/B test your email subject lines.
Click-Through Rate (CTR)
Your subscribers opened your email. Fantastic!
Now, if you included links, how many of your readers clicked through to your website? Your email CTR is an excellent way to measure email marketing engagement.
Sometimes, unsubscribes are a good thing. Your product won’t be a right fit for everyone and unsubscribes help you get a more accurate Open Rate and CTR. However, if you have a high number of Unsubscribes, it might be time to reevaluate your email strategy.
The bottom line
Not everyone loves metrics and analytics in digital marketing. You’ve already got a million and one things on your to-do list — adding “track and measure digital marketing KPIs” might be too much to handle.
That’s okay. But if that sounds like you, then maybe it’s time to call in my team of experts.
We geek out over numbers and analytics so you can go back to doing what you do best — running your business.
You don’t have to measure your metrics. However, if you want to grow your business effectively, you need someone by your side who can.
Ready to learn more? Schedule a consultation call today.