Determining Your KPIs

This is the eighth article in our series Parts of a Digital Marketing Strategy. Continue to follow along in the coming weeks as we release the remaining pieces to forming a successful strategy. 🙂

Parts of a Digital Marketing Strategy:

  1. Creating Client Personas ✓ 
  2. Market Research ✓ 
  3. Competitive Analysis ✓ 
  4. SWOT Analysis 
  5. Keyword Research 
  6. Content Research 
  7. Which Social Platforms to Use 
  8. Determining Your KPIs
  9. Pulling It All Together

What is a KPI?

Tracking the results of all your ads, posts, ecommerce, etc. can be ridiculously time-consuming and difficult. But by determining specific digitial marketing KPIs, it’s easy to determine your goals and measure your performance based on your KPIs.

A Key Performance Indicator (KPI) is a measurable value that tells business owners how effectively their company is reaching their most crucial business goals. Organizations use KPIs to evaluate their success and progress towards reaching targets.

KPIs vary for each business, depending on their goals and objectives. For example, B2B businesses would probably focus more so on lead generation, while e-commerce stores would focus on sales and transactions.

Find the metrics that matter for you.

Data is collected every year, every month, every second… on anything and everything, especially on the internet! The great thing about social media is that absolutely everything is tracked and measured. Every click, like, share, etc. is recorded. The data is endless, and ever-growing.

But with all the data that is so readily available to us, where do we even begin!? It’s hard to determine which numbers you should actually be focusing on and measuring. KPIs can be different for every business, so it’s not something you can base on someone else’s business model. You have to look at your business individually.

KPIs for Reach

Number of Followers

Perhaps the easiest and most obvious way to determine whether you’re reaching enough people is to look at the number of followers you have on each platform. Remember though, that a large number of followers doesn’t necessarily mean anything… they have to be meaningful followers to result in anything. Nonetheless, the fact that your company/message has reached this number of people can be a good start to a campaign.

Impressions

Impressions are more complicated. They show how many times your posts have shown up on any timeline or newsfeed. Therefore, one user can have multiple impressions. For instance, they may see a post once in their own newsfeed, and then again when someone they follow shares it. This number is vague and a little complicated, but as always, a higher number is what you’re looking for!

sproutsocial.com

 

Web Traffic

It’s important to measure the amount of traffic coming to your website from your social media. Is your social media bringing people in to your website? This would be the first step in converting your followers into customers, since they are interested enough to click through to your website and find out more about your company. If your social media campaigns get a lot of reach and engagement but you are seeing little increase in web traffic, this could be a sign to tweak your call to action on social!

KPIs for Engagement

Reach is a way to measure your potential for campaigns, but engagement is where things really start happening! This is the social side of social media. 😉

Clicks

Clicks are one of the easiest forms of engagement to measure. Clicks occur anytime anyone is willing to click on a link to your website or blog. These people are more likely to convert into sales. Clicks are the start of cultivating meaningful, qualified leads, instead of basic traffic. Along with clicks, remember to evaluate likes, shares, and bounce rate. If your clicks are high, but your bounce rate is equally high, then it seems like maybe your landing pages aren’t appealing enough. Or, if shares are low, it seems that maybe people aren’t liking what you’re selling.

sproutsocial.com

Likes

Likes are a great, natural way to generate attention for your brand. On social media, as humans, we love associating with one another and “liking” what we like! Also as humans, when we see something that’s popular, we usually like to be a part of it. High numbers lead us to believe there’s a reason it’s so good! Therefore, the more likes a post or a page has, the higher engagement it will cultivate.

sproutsocial.com

Shares

Likes are great… but they’re too easy. Sometimes we like things without even fully reading them, or knowing who posted it, never to interact with them again. Brand loyalty and true engagement, however, is shown through Shares or re-tweets. Shares are a sign that your customers are willing to recommend your brand to their own friends and followers; and in this age of “social proof,” that means a lot!

Comments

Social media is about being social. It’s for more than just clicking and sharing, it’s for having actual conversations! You want your content to be interesting, informative, and relevant so that it will spark conversation among your followers. And remember to respond to them! Keep the conversation going. Comments are an excellent KPI and a real meaningful measure of engagement.

Mentions

Mentions are excellent because people can be talking about your company all the time, especially when you’re not in the room! And it doesn’t matter who is talking, whether you’re connected or not, the things they are saying about your company are important. Did you know that approximately 96% of people who discuss companies on social don’t even follow that brand’s profile!? What are they saying? This is why it’s worth looking at mentions when you’re measuring social media KPIs.

KPIs for Conversions

Many companies find conversions to be their most telling KPIs and the best measure of success for a company. Likes, clicks, and shares don’t mean a whole lot if no one is finding their way to your website or buying anything!

Conversion Rates (Sales)

If you have an online e-commerce store, you should obviously be tracking your sales and transactions!

To do this, you will first have to make sure you have the Google Analytics’ JavaScript code implemented on your shopping cart or website that collects information. Once implemented, you can use Google Analytics to gather all kinds of data. At the touch of a button, Google Analytics provides you with an easy-to-understand dashboard that displays key metrics such as your conversion rate optimization! Your e-commerce conversion rate is calculated by the percentage of visits that resulted in an e-commerce transaction. (To find this number: open Google Analytics, go to Conversions section, click Ecommerce from the drop down menu, and boom, your E-commerce Conversion Rate will appear in the dashboard.)

This number tells you how much money your website is bringing in. Are people using online transactions?

Your conversion rate can also be super helpful in helping determine purchase problems. If website traffic is particularly high but people are failing to convert, there could also be a problem with your landing page or shopping cart. Maybe something is stopping customers from reaching the final purchase stage. Your conversion rate can help you identify and fix these issues.

Conversion Rates (Leads)

If you don’t have an e-commerce site, you can still track lead conversions, like newsletter signups or Ebook downloads. You can set up individual, specific goals on Google Analytics. This is a great way to help you keep track of leads that aren’t necessarily transactions.

Keep track of these targeted leads that you can then feed through to your sales team… just by setting up goals for individual landing pages.

Google Analytics calculates your Goal Conversion Rate as the percentage of visits that resulted in a goal completion. (To find this number: open Google Analytics, go to Conversions section, click the Goals tab from the drop down menu, select your desired Goal under the Overview tab, and Goal Conversion Rate will appear in the dashboard.)

KPIs for Customer Loyalty

Cost Per Lead Per Channel

This is the average amount of money spent on a particular digital marketing channel in order to attract one new lead (or potential customer) for a particular campaign.

Of course the number of leads generated is important, but you also should know how much it cost you to generate those leads. Calculating Cost Per Lead Per Channel helps you identify which channels are the most powerful lead generators so you can invest in them accordingly. For example, if it costs you less to generate the same amount of leads on Facebook than it does on Twitter, then you could consider spending less marketing dollars on Twitter and focus more on Facebook. Put your money towards the one proven to work best for you. Here’s the formula for Cost/Lead:

(Ad Spend/Lead = Cost Per Lead)

Cost Per Lead is probably one of the most important metrics you can look at, where you can directly see your return on investment – the leads acquired for the amount invested.

Something else to consider is that not all leads are equal!  Some are stronger (or warmer) than others. When choosing which digital marketing channels to put your money towards, you will also need to keep track of the quality of the leads your campaign is generating.

 

Customer Lifetime Value

Loyalty, loyalty, loyalty. The more loyal they are, they more they will keep coming back. It’s a difficult task for companies to improve the lifetime value of their customers, but social media can help! Social media can enhance your brand’s relationship with customers, keeping them constantly connected rather than making brief impressions. Customer lifetime value is a strong indicator of how powerful your social strategies really are!

 

For an even more in depth look at digital marketing KPIs and potential indicators for your business, check out This Complete Guide of 37 Digital Marketing KPIs or This Article filled with 70 digital marketing KPIs for small to midsize businesses.

The bottom line.

In today’s digital world, you need to know how to communicate with your audience in the most efficient and productive ways. This is why you need to track your KPIs.

The data is endless. Look at your past social media strategies, analyze the data, and you can begin to make smart, informed decisions about how to enhance future campaigns.

The metrics your company should be most concerned about are those affecting your company’s bottom line and driving forward revenue, leads, new customers, and growth.

First ask yourself the right questions to select the perfect metrics, then learn how to calculate them.

Finally, create an easy-to-read dashboard displaying all your KPIs that can be (and will be) updated regularly. 😉


Stay tuned for the last segment in our “Parts of a Digital Marketing Strategy” series!

Up Next: Pulling It All Together.

  1. Creating Client Personas ✓ 
  2. Market Research ✓ 
  3. Competitive Analysis ✓ 
  4. SWOT Analysis ✓ 
  5. Keyword Research 
  6. Content Research 
  7. Which Social Platforms to Use 
  8. Determining Your KPIs 
  9. Pulling It All Together

*Sign up for our newsletter so you can get reminders as these topics are published. 🙂 

 

Until next time…
Chill Digital Marketing


 

Sources:

brandwatch.com/blog/96-amazing-social-media-statistics-and-facts/

scoro.com/blog/digital-marketing-metrics-kpis/

sproutsocial.com/insights/social-media-kpis/#engagement

uhurunetwork.com/digital-marketing-kpis/

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