It is commonly stated that 80% of the outcome results from 20% of your input. The same is true for marketing campaigns. But where should your marketing efforts and resources be directed?
Numerous digital marketers depend on marketing KPIs to make more informed decisions and evaluate their marketing data. Find out which digital marketing KPIs agencies benefit from the most, the best ways to track them and why it is important.
KPIs in marketing are metrics that marketing agencies set, measure and examine to get insights into whether they are on their way to achieving goals.
Key performance indicators are telling agencies how their clients’ businesses are doing and how their effective marketing initiatives benefit the company’s bottom line.
By setting KPIs, marketing agencies can ensure they achieve their goals. Same KPIs can also give insight into whether or not a strategy is effective. If the strategy is ineffective, the same KPIs can guide you in the direction and show you why it is not working and what needs optimizing.
When marketing agencies set KPIs for each phase of their digital marketing campaigns and measure them regularly, they’ll be able to see what’s working and adjust their approach.
Specific KPIs allow marketers to see different things. Some will provide insights into how you’re driving new conversions, some into how your engagements with the clients’ audiences are going and some - how well you generate website traffic.
If you want to track your marketing KPIs effectively, there are more ways than one. Here are some of the most popular choices.
For decades, manual reporting was the only way marketing agencies could generate reports.
However, it has so many drawbacks that it is no longer the best way to analyze data.
It takes a long time.
Creating advertising reports from scratch takes many hours. Because you must cover all of these marketing channels and campaigns, entering data and results from each will take up valuable time.
It is prone to human mistakes.
As you can assume, typing numbers for hours requires complete concentration. As a result, there is a high risk of data inaccuracies, as well as misplaced and mishandled data.
It requires more manpower.
Because creating reports takes a long time, some marketing agencies and departments may require additional personnel.
We at Whatagraph are well aware that manually creating reports is inefficient. That is why we provide a gallery of over 95 ready-to-use templates.
Use pre-made templates to save hours of data reporting time. There are currently over 40 integrations available for connecting to Whatagraph's marketing reporting software.
Locate your marketing report template and sort by integration or report type.
Take advantage of our marketing analytics report template for 7 days free.
The end result? You can create KPI reports in minutes instead of hours at a time with Whatagraph.
Omniconvert defines CLV as ‘Customer Lifetime Value is defined as the forecast of net profit generated over the course of a business relationship with a customer. Instead of referring to the value brought by their first purchase, CLV indicates how valuable a customer is to your business for an indefinite period of time.’
The acquisition cost is the money required to acquire a new customer. Examples of this are marketing, sales pitches or meetings, and anything else that contributes to your prospecting and conversion process.
The Cost per lead metric determines how cost-effective your marketing strategies are at creating new leads. A lead is a person who has shown interest in your product or service by accomplishing an objective.
Kent Lewis, a Chief Marketing Officer at Anvil, asks these questions when figuring out their cost per lead:
‘How much are we spending to generate qualified leads? Which channels are most effective?’
Marketing ROI is a method of calculating the return on investment from a company's marketing budget. Simply put, it’s the overall value that you get out of a marketing activity compared to the money you invested in it.
The conversion rate indicates whether or not a user completed the action you desired. It is typically measured in percentages, with the higher the percentage indicating a successful campaign. Anything can be a conversion: someone subscribing to your email list, adding an item to their shopping cart, booking a demo - any action that is relevant for your business.
Tyson Downs, the owner of Titan Web Agency, provides tips for increasing conversion rate:
‘Good website design and layout are very important for conversion rates: these factors can affect the length of time people spend on your site as well as the quality of their experience. Conversion rates also depend on the offer and call to action you provide, with a clear message being key’.
Organic traffic is generated when a user clicks on a link to your website or lands on any of your landing pages from an unpaid source. Usually, organic traffic is considered everything that comes from search engines such as Google.
A new backlink means another website has included a link connecting to your client’s website.
A lost backlink implies that the link was removed from the other website, for various possible reasons
In SEO, keyword rankings refer to the position of your page on the search results page for a specific keyword search. The better your page ranks for a certain keyword, the more people will click on your website, the more traffic you get and hopefully, your conversions improve too.
Domain rating (DR) and Domain authority (DA) are metrics introduced by Ahrefs and Moz, respectively. On a scale from 1-100, they tell you how authoritative or “strong” your website is. While this isn’t the ultimate metric for the quality of your website, it does let you track progress in terms of your website’s search performance.
This is the average position of your content in search engine results. The lower this number, the better you’re doing.
The open rate is the percentage of email recipients who open an email. A low open rate means that you need to work on your subject lines and creating more targeted emails for a better audience.
The email deliverability rate (or acceptance rate) is the success rate of a marketing agency specialist in delivering an email to a client's customer email address.
The bounce rate indicates whether or not your email was delivered to your client's intended audience.
There are two types of bounce rates, based on the reason why an email couldn’t be delivered.
The list growth rate is the rate at which your email list expands. The higher, the better.
Because the goal is to gain more subscribers, every digital marketing agency should track this KPI. If you don't track your list, how will you know if it's growing or shrinking?
The unsubscribe rate is the percentage of email recipients who immediately unsubscribed from your send list after opening an email. The lower, the better.
CPC is the average cost to you for each ad click.
The CTR indicates how many times your ad was clicked on. It is typically measured in percentages and indicates how many people are likely to click on your ad/link after seeing it.
ROAS indicate how much money your advertising campaign generates. In other words, what kind of return you or your clients get from the money spent on your ads.
The follower growth rate indicates how quickly your client's social media account is gaining followers compared to your previous follower count.
This KPI measures and tracks user engagements on clients’ social media accounts and identifies how many new comments, like, shares and followers they get.
Conversions from social media refer to the accomplished desired actions made by the target audience on the client’s social media. As mentioned above, there are different types of conversion actions, so choose wisely.
No KPI is a ‘one-size-fits-all’ metric. However, the metrics mentioned above are the most commonly used ones that provide the deepest and best insights into your marketing strategies' performance.
To deduce which metrics to track, marketing agencies should consider their goals and KPIs that best examine their initiatives.
Whatever KPIs are most important for you to track, they must meet the SMART criteria. The KPIs you should monitor are:
In other words, each KPI you choose:
Tracking and monitoring marketing KPIs may be essential to operate marketing strategies. Choosing the proper metrics to track your progress is critical when launching a new ad, SEO or email campaigns. The KPIs presented in this blog are the most widely used. If you want to learn more about marketing KPIs, we created the ultimate guide to KPI tracking.
Published on Aug 02, 2022
WRITTEN BYDominyka Vaičiūnaitė
Dominyka is a copywriter who uses simple words to explain tough ideas. Her content is inspired by the good old brand “For Dummies.” Anyone can read and learn all things marketing with her.
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