If you're not tracking key performance indicators (KPIs) to determine where your digital marketing efforts are paying off (or aren't), your campaigns are never going to improve. Without analyzing a campaign's effectiveness, you're essentially settling for whatever results you get. That's where KPIs pay off. They provide valuable information to help you adjust your digital marketing efforts to ensure you're reaching your target market.
Here are a few of the most important KPIs you should be analyzing:
Evaluating traffic through a pay-per-click ad is relatively simple, but gives you some great insight into things like how consumers are finding your brand, what ads are getting seen most, and the types of consumers who are finding your brand.
While traffic relates more to ads and quantity, conversion is more about landing pages and quality. Getting consumers to notice you is good for branding, but getting consumers to convert is good for profits. Think window shoppers compared to spenders.
Return on Investment (ROI)
Your return on investment isn't always easy to track, but well-managed customer relationship management (CRM) tools can help track the revenue earned from each campaign through a variety of filters.
True ROI must be measured by comparing a campaign's different channels (e.g., email, paid ads, social media), sources (e.g., Google AdWords, e-newsletters, Twitter), and wording (using A/B testing for email copy, search ad copy, and website copy), among other factors.
Failing to measure your campaign's performance turns your marketing efforts into costs rather than investments. Without solid data to justify your spending, your marketing budget will slowly be whittled away.
On the flip side, tracking KPIs in your digital marketing will give you the opportunity to improve on your ideas, streamline your efforts, and fund your campaigns wisely.
Although it may be intimidating to track your campaign efforts, it's worth the effort. If you need help setting goals or monitoring analytics, a digital marketing company can help.