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KPIs and Metrics: How to Measure Digital Marketing Success

Posted by: Omaha SEO Company , September 17, 2021
Posted in Digital Marketing, Marketing | | 648 Views

KPIs and Metrics

If you were asked to provide a digital marketing progress report, how do you think you would do? Would you even know what to do? Sure, there’s a chance that you could be doing a stellar job. However, in order to illustrate that success, you need to be able to showcase the numbers in order; otherwise, you won’t be able to make a convincing impression. Let the KPIs and metrics do the talking. In this article, we will teach you how to measure the success of digital marketing efforts.

KPIs and Metrics: How to Measure Digital Marketing Success

As a professional in the marketing industry, there’s a lot that you have to attend to. However, there’s a crucial element that you may be overlooking: numbers. That’s right, you need to have numbers in order to back up the impact that your marketing efforts are having. Thankfully, there are several easy-to-use key performance indicators (KPIs) that you can use to calculate, measure, and substantiate the success of your marketing strategies.

What are KPIs?

KPI stands for Key Performance Indicators. They are critical indicators of your progress toward the intended results of your marketing efforts. KPIs offer a focus for improvement in both strategy and operations. As a result, developing an analytical basis that you can use to make decisions about your marketing efforts can help you focus more attention on advancing your strategies and your impact.

In order to manage your digital marketing efforts using KPIs, you need to set targets. These targets are considered the level of performance that you desire. You also need to track the progress you are making against that target. In order to manage your marketing strategy with KPIs, you usually have to work on improving leading indicators that will drive lagging benefits later on. Leading indicators are the precursors of your future digital marketing success and lagging indicators illustrate how successful you were at achieving the results you set out to achieve in the past.

KPIs to Measure Your Digital Marketing Efforts

There are several KPIs that you can use to keep track of and measure your digital marketing efforts. The specific KPIs that you focus on depends on several factors. Such factors include the topic of your campaigns and the audience you are trying to reach. It’s important to note that keeping things simple is the best approach. Use care when choosing your KPIs and choose a handful of core metrics that measure your performance and stick with them. You might be tempted to put every single statistic into your report. However, you must resist the urge, as it will only muddy things up. Instead, stick to only those that are directly related to the objectives of your campaign.

Customer Lifetime Value (CLV)

With this KPI, you can determine how much you can expect to earn per customer, thanks to your marketing efforts. The longer you retain your targeted customers, the higher your customer lifetime value will be, and thus, the more revenue you will generate. A higher CLV indicates how high your customer acquisition costs can be so that you can continue to remain profitable. To calculate CLV, average the revenue made per customer from their very first purchase to the time they churn.

Cost Per Acquisition (CPA)

This KPI describes the cumulative cost of acquiring a single customer throughout a particular marketing campaign. To calculate an approximate CPA figure, take the total dollar amount that was spent on acquiring new customers with your campaign and divide that number by the amount of new paying customers that were acquired during the campaign. You can tell your marketing efforts are successful by how low your CPA is relative to the lifetime value of a customer.

Marketing Channel Return on Investment (MCROI)

This KPI makes it possible to articulate the value of each of the marketing channels you’re using. It quantifies the total value of each of those marketing channels, including:

  • SEO content
  • Google Ads
  • Facebook PPC
  • Webinar ads

This KPI expresses the total value of a program by subtracting the cost of the program from the lifetime value of the conversions that the program generates. For instance, you might spend $10,000 on SEO content and associated funnels. However, if that then generates 100 leads that result in 20 conversions with a $20,000 CLV, the MCROI will be $390,000.

Conclusions

KPIs and metrics are some of the easiest and best ways to measure your digital marketing success. The above-mentioned tools are some of the best options available.

Additional Reading: How to Stop Confusing Your Clients with Metrics

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Omaha SEO Company Gets FIVE STARS!
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