Digital marketing is different in many ways from traditional marketing. You reduce complexity and leave little room for ambiguity in online marketing.
Key Performance Indicators (KPIs) are metrics that help you monitor and analyze your marketing efforts. If you track these metrics, you can know for sure what works and what does not. They allow you to arrive at what areas to optimize for tremendous success. These metrics help business leaders make crucial decisions.
You will require these KPIs for effective marketing while minimizing expenses. Let’s find out how these KPIs help you track your business goals.
Click-Through Rate (CTR)
This metric helps you analyze the effectiveness of the campaign by seeing how people respond to it.
The formula for CTR is: Ad Clicks/Ad Impressions * 100
The KPI tracks the number of people who show interest in your ad. Not everyone who sees the ad will become a customer. The metric finds the percentage of people responding positively to your ad.
CTR is essential in PPC and email marketing campaigns. The KPI helps you find ads that need optimization. You can also find ads bringing in more leads and conversions. A higher CTR rate tells you that your campaign is successful. You can seek PPC Services from a digital marketing company in India to increase your CTR.
Return on Investment (ROI)
ROI is a common KPI used by most businesses to determine the performance of campaigns. The metric track your marketing efforts and tells you whether your campaign is successful. You can arrive at ROI by subtracting the marketing expenses from the profits you get from the campaign. This metric helps business leaders decide whether to continue with the campaign.
A negative ROI means you should stop your campaign. A positive ROI is a sign that you can bring more customers into your company or intensify the particular campaign by injecting more capital and resources into it.
New Visitors vs Returning Visitors
The dual metric helps you judge the performance of your content marketing campaign. With this indicator, you can know whether your visitors find the content helpful and relevant.
If you want to increase your organic traffic, you should focus on New Visitors.
If you are looking to retain customers, you should focus on the Returning Visitors metric. The metric helps you identify the rate of people coming back to your site. If they find answers to their pressing questions, they will return. So, focus on educating your audience by identifying their pain points.
You will publish content frequently. The dual metric helps you identify which area to focus on; these include clarity on bringing more leads or people coming back to you for more information? You can get PPC Services to target new customers with your copy.
Traffic by Source
If you are wondering where your customers are coming from, this metric is for you. Running campaigns across various platforms takes a lot of time. The metric helps identify platforms that need your attention. You will know where to spend your money and where to market your content.
Google Analytics tracks four important traffic sources:
- Organic Search: These users found your site by clicking a link in the SERP.
- Direct Visitors: These users find your site by typing your URL into the search bar. They could also save your link and return it to your site.
- Referrals: These people came from another site. When they clicked backlinks on other sites, they ended up on your site.
- Social: These people came to your site from a social media post. They also could come to your site by finding your social media account.
The Bounce Rate metric tells you the number of people who leave your site. These people visited your site, but they are not interested in finding more information.
The metric helps you identify how effective your landing pages are. You can use it to judge whether your landing pages meet their goals.
Some reasons people leave your site include a slow site speed and irrelevant content. It could also show that your campaign is not targeting the right people.
You can decrease the bounce rate by fixing site speed and optimizing internal links. Add images and videos to make your site livelier.
Bounce Rate = Number of users left/Total Visitors.
Time on Site
The metric tells you the amount of time your visitors spend on your site. With this metric, you can track the interest level and engagement of your visitors.
The visitors that spend more time on the site means that they find value in your content. They could become life-long customers if they spend a lot of time on your site. A digital marketing company in India will help you increase your dwell time.
Optimize the pages where they spend more time. By making it easier for them to read your content, you encourage them to become your loyal customers.
The social engagement metric helps you track your social media efforts. You can know which social media posts are performing well. It tells you the total number of interactions on a social media post.
The interaction on social media could take one of these forms:
With this metric, you will know what type of content works. You can use it to find topics that will make your posts go viral. Work with a digital marketing company in India to increase your social engagement rates.
Customer Lifetime Value (CLV)
The CLV metric helps you calculate the profit you get from a customer during their entire lifecycle as a customer. You can also find the channels where you get profitable clients.
The metric helps boost customer loyalty. You will know which customers to focus on for more profits. It enables you to strengthen your existing customer base.
Shahid Mansuri Co-founder Peerbits, one of the leading offshore development team provider. With his guidance many companies hire offshore remote developers team from Peerbits for their complex and customized projects. His years of hard work, dedication, and experience has helped him in developing profound expertise for a wide array of technologies, tools, and platforms. He believes in sharing his strong knowledge base with learned concentration on entrepreneurship and business.