How to choose great Digital Marketing KPI’s
In this post, we’re going to talk about how to choose great digital marketing KPI’s.
So how do we create really great digital marketing KPI’s? Let’s face it, every single platform, whether it’s Google Analytics, Facebook, etc will all give us so much information to help with our digital marketing.
But that could be a massive problem to us too. Because what we need is some great simple KPI’s (Key performance indicators) to help us with our digital marketing.
For this, we have to go back to ‘keep it simple’. Have one number for each platform, each part of your digital marketing. There will be some other numbers that support that ‘one number’, but if you come up with just one, if I limit you and say you’re only allowed one, then all of a sudden you’ll think about what the most important number is for your digital marketing overall and for each particular part of your digital marketing. So when it comes to your website, I talk about measure your conversion rate.
Just like you would on your website, do the same for any other area. So email marketing, we need to look and see what’s the one, number one thing that the email marketing needs to do. And it could be that we say it’s all again about sales. So we use our email marketing, for example, for selling up sells and cross sells, in which case that’s how it gets measured.
How many of those emails led to a conversion on the website that was an up sell or a cross sell? It could be on social media. We’re trying to build up a loyal following. We’re not looking for direct sales, so therefore I measuring my levels of engagement so not reach but engagement.
So finding out for each one. What exactly is it you want to achieve from each particular part of your digital marketing? That tells me the KPI. It’s very different for different people, whether you’re building up more awareness or whether you wanting more direct sales.
But it’s all about thinking if I want one thing and I can have only one thing from this particular aspect of my digital marketing, what would it be? That’s the secret. That’s what you need.
So how do you come up with great KPI’s? It’s really specific to what you want, but it’s always the same. It’s one number for each area of your marketing. You need something that you can action, and therefore you don’t need to be overwhelmed with data.
So one KPI, one number for each element of your digital marketing. I do understand there are numbers underneath those but one, only one per individual part of your digital marketing.
That’s the first place to start but there is also a critical tip for coming up with great KPI’s. You need to minimise how much effect on your individual KPI, other areas of your marketing have. Let me explain.
Conversion rate is far less affected than the number of conversions. Number of conversions relies on how many things came in the top end, to come out the bottom end. Conversion rate isn’t. It’s no affected by that.
So conversion rate is, if it’s 10% of 100, or 10% of 1000 it’s still 10%. So you need to minimise the effect that other things have on your KPI. In order for it to be a great KPI.
Getting this right is critical to your success and although it is simple, often people struggle to see their own business objectively in this area. If you would like help setting up KPI’s for your business, use the form below to get in touch.
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