There really is no telling how successful your campaign is without some sort of digital measuring stick to track your progress.
This is where key performance indicators (KPI) come in and provide an accurate evaluation of whether your campaign is meeting benchmarks.
Of course, KPIs should be specific for your type of business goal. These four KPIs listed below are effective for gauging where you’re at and where improvements are needed.
Customer Profitability Score
How profitable is a consumer after factoring costs to convert that person from a lead to a customer?
Many factors must be taken into consideration here. How valuable is the customer? Is he a one-time customer, or is there a likelihood of this person becoming a long-term consumer?
This needs to be measured against the cost that was required to get this person through the entire sales funnel process.
The sales funnel may include discount offers, one-on-one online or in-person meeting, free samples, etc. All of this requires time and money.
Essentially, customer profitability score and all other KPIs for that matter should start fairly broadly and lead to more specific questions like the ones listed above, or the ones are shown in the chart below. You can create your own similar chart to help organize your KPI.
Photo credit: Colleen Dilen
Net Promoter Score
This KPI refers to the likelihood that a customer is to recommend your company to friends and family.
A customer with a high net profitability score also raises his customer profitability score.
You can look up the person’s social media activity online. How many friends does he have?
How often does he post? You can even straight up ask the person with a survey question asking how likely is he to refer your product or service to someone else.
Landing Page Conversion Rate
High website traffic is good and all, but what good does it do if visitors are leaving without clicking the backlink to the main product/service page?
Conversion rate across industries is only 2.35%, and a quarter of companies have conversions under 1%. Examining a KPI in this area can help get your clicks up.
What is the ratio of visitors to those that eventually convert to a customer?
Furthermore, of those that clicked the link, how many visited the site again at a later date?
How many eventually sent an email inquiry? How many browsed other products and services within the site?
If visitors are taking little action before clicking away, then you may need to refine your site. This may include:
- Changing your call-of-action
- Fine-tuning the text (e.g. using second-person language, using command words)
- Including on-page testimonials
- Displaying or mentioning industry awards
Organic Traffic vs Paid Traffic
Since PPV ads cost money, it goes without saying that you want the bulk of your traffic from organic searches.
What is the ratio of organic visits vs visits via PPC or Google AdSense banners?
If the majority of visits are coming from the latter, then you’re incurring a higher overhead spending. This KPI should also include the conversion rate from each traffic source.
If you’re getting much less organic traffic, then this may be an indicator to ramp up SEO efforts. Is your website keyword-optimized?
Do you have backlinks from high-authority sites linking back to your homepage? Are you linking mainly to do-follow sites?
KPIs are the heart of data-driven marketing. It helps you make informed decisions about the direction of your business.
Having a solid four to five KPIs for every business goal will provide solid data about your consumers and their behavior.