6 Critical Digital Marketing KPIs You should track for your next campaign
Are you about to launch a digital marketing campaign, but don’t know where to start tracking success? With so much data available at your fingertips these days, it can be hard to decide which metrics are the most important. This post will walk you through the 6 most critical digital marketing KPIs that every campaign should track – from key website visits and performance indicators to cost and ROI metrics. By understanding how they impact your overall digital presence, you’ll set yourself up for success in planning and measuring the effectiveness of future campaigns.
#1 – Website Visits
The easiest metric to start tracking is the number of website visits your campaign receives. This will give you an indication of how many people were exposed to your message and potentially interacted with it in some way. You can also break down website visits into different channels (e.g., organic search, direct links, social media) for a better understanding of how people came to your site.
Digital Agency Los Angeles shares that in addition to the overall number of website visits, you will want to monitor metrics such as bounce rate and average time on page. Bounce rate is an indication of how many visitors left your site after viewing only one page (this can be indicative of low engagement). The average time on page metric shows the average length that a visitor stayed on each page – for example, if someone visited several pages but spent most of their visit on one particular page, then this would indicate high engagement with that specific content.
Finally, you should also track key events such as form submissions and product purchases as they are indicators of user interest in your offer or brand.
#2 – Cost per Acquisition
Cost per acquisition (CPA) is one of the most essential KPIs for measuring the effectiveness of your digital marketing campaigns. It’s also one of the best ways to measure return on investment (ROI). The formula for CPA is quite simple: total cost divided by number of conversions (for example, purchases or registrations).
For example, if you spend $500 on a campaign and get 20 conversions, then your CPA would be $25 ($500/20 = $25). By tracking CPA along with other metrics such as website visits and key events, you can quickly assess whether your campaign was successful based on the cost associated with it.
Digital Marketing Agency Los Angeles added that it’s important to note that CPA isn’t just about the money you spend on a campaign – it can also be used to measure how effective your website and user experience are. If your CPA is consistently high, then this may indicate there’s something wrong with the way users interact with your site or that their expectations weren’t met and they didn’t complete their desired action (e.g., purchase).
#3 – Customer Lifetime Value
Customer lifetime value (LTV) is an important metric for assessing how valuable each customer is over time. It measures the total revenue generated from a single customer compared to their total cost of acquisition (CAC). For example, if you spend $100 to acquire one customer and they generate $200 in revenue over their lifetime, then your LTV is $100 ($200 – $100 = $100).
LTV can also be used to determine which channels are the most effective for acquiring customers. For example, if you spend more on Adwords than Facebook Ads but end up with a higher LTV from Facebook users, then this could indicate that Facebook Ads are more cost-effective and should be given priority when budgeting.
It’s important to note that LTV is not a static metric; it changes over time as customers interact with your site, purchase products or services and make referrals. A top digital marketing agency emphasizes that this means you’ll need to periodically review and revise your assumptions about customer value in order to ensure accuracy.
#4 – Conversion Rate
Conversion rate is the percentage of people who take a desired action on your site, such as making a purchase, downloading a file or signing up for a newsletter. It’s an important metric to track because it helps you understand which parts of your website are working and which ones need improvement.
For example, if you have two different versions of the same landing page and one has a higher conversion rate than the other, then you’ll know that the higher-performing version is more effective at converting visitors into customers or leads. You can use this information to make changes to improve overall performance.
It’s important to note that conversion rates can be affected by numerous factors, including user intent, design elements and message clarity. Analyzing conversion rate is a great way to identify potential opportunities for improvement and ensure that your website is delivering the intended message.
#5 – Click-Through Rate (CTR)
Click-through rate (CTR) measures the percentage of people who click on a link out of all those who are exposed to it. It’s commonly used to measure the effectiveness of an email, display ad or search engine marketing campaign.
For example, if you send out 10 emails and get five clicks, then your CTR would be 50%. The higher your CTR, the more effective your campaign is at driving engagement and conversions. You should track CTR in order to optimize campaigns and ensure they’re performing as expected.
It’s important to note that CTR can vary greatly depending on the type of campaign and audience. For example, the average CTR for a display ad is much lower than the average CTR for an email. It’s also important to note that factors such as message clarity and design can have a significant impact on click-through rates.
#6 – Relevancy Score
Relevancy score measures how closely your ad resonates with its target audience. It’s calculated by evaluating various factors such as audience size, demographics and interests, as well as engagement metrics like clicks, views and conversions. The higher your relevancy score, the better your ad is performing in terms of reaching the right people at the right time with the right message.
Relevancy score is an important metric to track because it helps you understand what works and what doesn’t when it comes to targeting customers. For example, if you have two different versions of the same ad and one has a higher relevancy score than the other, then this could indicate that there are elements in the higher-performing version that resonate better with the target audience.
It’s also important to note that relevance scores can vary depending on the platform being used for serving ads. This means you should compare scores across platforms in order to identify opportunities for improvement or optimization.
These are just some of the key digital marketing KPIs you should be tracking for your next campaign. By keeping an eye on these metrics, you can get a better understanding of how your campaigns are performing and what areas need improvement. This will help ensure that you’re getting the most out of your digital marketing efforts and maximizing ROI.