Digital marketing is highly recommended for businesses trying to increase sales. Although many business owners are having a hard time measuring the results of their online campaigns, spending on digital marketing is still expected to increase by as much as 12 to 15 percent. Some marketers do not know which digital efforts have the best revenue impact. Others do not even track metrics to get this information.
To make sure that your digital marketing campaign is helping you increase your sales and popularity, you have to check on some important digital marketing KPIs.
What is KPI Marketing?
Digital marketing KPIs are important when tracking your advertising efforts. These business KPIs are defined by measurable values that can help reveal how well your company is meeting performance goals. To be effective, KPIs must be relevant to your business and task should be attainable within a given timeline.
For example, instead of tracking general sales, you can choose a single product and assess its selling rate over the course of one month. If it is flying off the shelf, good! You can invest in it more. If not, you can remove it from your store.
While using KPIs may not always yield impressive results immediately, over time, they can bring incredible value to your strategic planning. They can help you build better processes and faster, more efficient, growth.
What Are the Most Important Business KPIs for Digital Marketing?
Several business KPIs can be helpful in assessing your brand’s potential for growth, but the idea of tackling all of them can be overwhelming. For that reason, you should first focus on the most critical ones.
1. Digital Marketing ROI
This is one of the most important KPIs for digital marketers because it can effectively answer the question, “Is digital marketing working for your company?”
To calculate your digital marketing ROI, you have to attribute brand new sales to your web promotion efforts. Failure to measure Return on Investment regularly may force you to do restructuring in your marketing strategies in the future. Tracking and increasing ROI should be your top priority as an online business.
2. Web Conversion Rate
Your page should be your best salesperson, tirelessly working for you round the clock to attract new customers and guide them through the sales funnel. This can be monitored by counting the number of tracked phone calls, tracked emails, and forms submitted, coming from your company page. Your tactics should be increasing the number of clicks and visits on your page monthly.
To determine the conversion rate, use this formula:
- Add the total number of tracked calls, tracked emails, and forms submitted and then divide it by the total count of website visitors
3. Cost per Lead by Source
The number of leads alone will not designate a successful digital campaign. You want to keep your lead acquisition costs low to be able to maintain healthy margins and see growth. By measure cost per lead for different web sources, you should focus on digital activities that will be the most profitable for your brand and reinvest your money accordingly.
To measure cost per lead, check this equation:
- Total spending on a campaign divided by the total # of leads
Again, do this for every source.
4. Revenue per Lead by Source
You would also want to know the approximate sales value of every new lead. This will help you forecast future sales based on the expected traffic and conversion rates. This business KPI will help you determine where your most lucrative leads are coming from so you can reinvest in them.
Here’s how to compute for the Revenue per Lead:
- Total attributable revenue divided by the total number of leads
Do this for every source.
Use KPIs to Make Better Decisions
While these digital marketing KPIs are useful in monitoring progress and proving the efficiency of your web campaigns, they are useless if you will not employ them to make educated decisions about your goals and strategies. You have to know which factors influence each of these metrics so you can make adjustments in the future.
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