Marketing is a fusion of science and art that comes together in an amazing way. It requires a certain level of creativity to make a campaign stand out from the white noise of information overload in today’s society. It also requires consistent measurements of performance so that the campaign can always be optimized to perform as well as possible.
This is why KPIs are so important. KPI stands for “key performance indicator” and these will evaluate the levels of success that are being achieved. There are multiple KPIs that can be used to measure results, so it is incredibly important to choose the correct ones that best meet your needs. These examples will help you get started on your journey towards seeing the complete picture of your next marketing campaign.
When you’re measuring your return on investment, then what you’re doing is measuring the ability of a marketing campaign to generate new revenues. It’s arguably the most important KPI to examine because it will help you understand if your income is outweighing the costs that are being incurred. If you’re spending $100 on a banner ad, for example, and you’re getting $85 in revenue from it, then you’ll know that the ROI is not good enough to keep the marketing campaign active.
2. Incremental Sales
When you’re using the ROI, you’re taking a full look at the revenues that are coming in compared to the expenses needed for marketing. The incremental sales KPI, on the other hand, measures the new dollars that are generated by your marketing only. Although this KPI is effective, it may not always account for the indirect revenues that are being generated.
3. Traffic Sources
This KPI keeps track of where the visitors to your site have originated. If you have people clicking through a Google search term to come to your site, then this KPI will log the amount of visitors and the popular search terms that brought them to you. Direct and referral sources are also included in this measurement. In examining this KPI, the specific marketing efforts can be evaluated for viability. If you are getting 80 clicks per day off of Facebook, for example, but just 20 clicks per day off of Twitter, then you can know that it is time to tweak or eliminate the Twitter campaign because it is underperforming.
4. Purchase Funnel
Getting visitors to your site is only half of the battle that you face. You’ve also got to know what your customers are doing when they start interacting with your site. One of the most important KPIs in this area will analyze and measure how the visitors are moving through your marketing campaign at every step. This will let you know if there are awkward places in your funnel where people are giving up because they’re confused, don’t see the content as valuable, or a combination of other factors.
5. Goal Completion Rate
This KPI helps to measure the overall success of a campaign in reaching the customer segments that have been targeted. This is essentially a measurement of how relevant and valuable your campaign is with those who are interacting with it. The most important data point from this KPI is the completion rate, which measures the number of visitors as divided by the objectives that have been set up for the visitors to complete.
6. Keyword Performance
This KPI is useful when you want to see the various performance rates of all your other KPI functions, but based on what keywords are being targeted. If you have a dozen keywords for which your site has been optimized, knowing the click through rates or your keyword ranking on those terms can help you to measure where you are being effective and where you could potentially provide some more value.
7. End Action Rate
This KPI measures what the last action is that your website visitors are taking within the confines of your marketing campaign. This is useful as it can show you where there may be weaknesses that need to be shored up. If people are bailing out at one screen fairly consistently, then you have invaluable information. If people just bail right after engagement, then you know that you’ve got to work on your value ratios.
These marketing KPI examples can help you to better understand just how well a website is performing. Make sure to choose the best options to receive the information you need to know so that your next marketing campaign can be the success you want it to be.