How successful are your company’s marketing efforts? Do you know what campaigns are doing well and which ones need improvement? 11 critical digital marketing KPIs (Key Performance Indicators) you should be tracking in 2020.
Every marketer needs to track their marketing campaigns to understand what aspects are working and not. These are Key Performance Indicators or KPIs. They’re a crucial part of every marketing strategy to measure your business’ growth.
Are you using digital marketing KPIs (Key Performance Indicators) to track your marketing growth? If your marketing efforts aren’t performing as well as you had hoped, you’re probably not using KPIs to their full potential. Digital marketing KPIs will show you what adjustments you need to make for an effective marketing strategy.
Do you want to learn how to boost your marketing strategies? Then, start tracking these 11 critical digital marketing KPIs (Key Performance Indicators) this year!
Why You Need Digital Marketing KPIs
Digital marketing KPIs (Key Performance Indicators) are numerical metrics measuring a company’s progress towards a particular goal. KPIs give you valuable insights into what strategies work well and what areas you need to adjust.
Use these 11 KPIs to start making better decisions on moving forward with your next marketing strategy.
1. MQL or Marketing Qualified Leads
Any prospect who shows interest in your brand is an MQL. But not all prospects are high-quality leads.
A Key Performance Indicator tracking the quality of leads will help you focus on quality leads that are more likely to convert. You’ll be able to measure the quality of each lead before passing them to your sales team. Tracking the quality of your leads will help both your marketing team and your sales team work better together.
2. Sales Revenue
The most effective way to test your marketing team’s success is by measuring sales revenue growth. One of the most valuable digital marketing KPIs is measuring your sales revenue to find what strategies drive sales. More importantly, you’ll discover which marketing efforts aren’t working well.
Measuring sales and revenue growth is necessary if you want your business to grow. You’ll be able to adjust ineffective strategies and identify valuable growth trends.
3. Cost Per Lead
How much does it cost your business to acquire a customer through inbound marketing versus outbound? Calculating customer acquisition costs or CAC will show how much you’re spending to reach customers. It also identifies how much value different customers add to your business.
If your costs to acquire a customer are more significant than the customer’s lifetime value, your business will lose money. Calculating these costs will help you divide your budgets and marketing efforts better on more valuable customers.
4. CLV or Customer Lifetime Value
A customer lifetime value is a Digital marketing KPI representing the average amount of money a customer will spend at a business throughout their relationship. This figure helps you decide how to allocate your budget to maintain current customers and acquire new ones.
You can measure and grow your CLV by reaching out to your current customers. This will keep customers happy and help you plan effective campaigns that resonate with your existing customers.
5. ROI for Inbound Marketing
Are you receiving a return on investment or ROI on your inbound marketing? Calculating your ROI for inbound marketing allows marketing teams to assess performance regularly. In addition, this stat gives you an in-depth look at how effective your different marketing strategies are.
From there, you can decide which marketing activities are worth pursuing. But, of course, you don’t want to waste your budget on marketing strategies that are not offering an ROI.
6. Customer Retention
In many cases, retaining customers is more cost-effective than trying to acquire new ones to maintain the customers you already have. Maintaining a long-lasting customer relationship is challenging but necessary for the survival of your business.
As a digital marketing KPI, customer retention measures your business’s ability to keep customers over time. It also measures the revenue from your existing customers. Tracking and understanding your customers’ buying habits is the most effective way to retain valuable customers.
7. Website-Customer Engagement
Customer engagement KPIs help you understand why customers are coming to your site and what they’re looking for. The primary metrics measured here are activity time, frequency of site visits, bounce rate, and user actions. In addition, you’ll learn about who your site visitors are and where they come from.
Understanding engagement will optimize your website to anticipate customers’ needs. These optimizations include changing website copy or functions to boost conversions.
8. Sales Team Response Time
The quality of a lead will deteriorate over time. Sales teams that respond within the first 5-10 minutes of receiving a lead will be more successful.
Measuring this KPI will help your marketing and sales teams determine how to improve response times. Enhancing your sales response times will convert more leads to customers.
9. Landing Page Conversions
Your business creates beautiful, well-designed landing pages. But, regardless of its impressive looks, a landing page that doesn’t convert traffic is pointless.
Do you know how effective your landing page is? If not, you need to track the conversion rates with these digital marketing KPIs. You’ll also gain an idea about what changes you’ll need to make, such as making a clearer call-to-action or adding social proof.
10. Social Media Traffic
Social media is a valuable part of almost every digital marketing campaign. You can track lead conversions, customer conversions, and social traffic through different social media channels. More importantly, these digital marketing KPIs offer several analytics tools to measure how effective social media is in your marketing efforts.
This digital marketing KPI will show you the best channels to focus your efforts.
11. Organic Traffic
People who find and visit your website through online searches are organic traffic. Businesses love organic traffic because it costs less to attract people to your site.
This KPI measures the number of people who visit your website organically. It would help if you also incorporated it into your SEO strategy.
Don’t Overlook the Power of Digital Marketing KPIs.
Digital marketing KPIs play an integral role in every marketing campaign. Their purpose is to help you make intelligent marketing decisions that will effectively grow your business and boost your ROI.
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