What are the KPIs in Digital Marketing?
Marketing agencies use KPIs to measure, analyze and report on marketing performance to determine if they are on track to reaching their goals.
Agency key performance indicators show how clients are doing, and how effective their marketing efforts are helping the company’s bottom line.
Why are KPIs important in digital marketing?
Marketing agencies can set KPIs to ensure that they reach their goals. Digital marketing KPIs can help you determine if a strategy is working. If the strategy is not effective, the same KPIs will guide you in the right direction and tell you what to optimize.
Marketing agencies can set KPIs and regularly measure them for every phase of their digital marketing campaigns. This will allow them to identify what is working and make adjustments.
Marketers can see different things by using specific KPIs. These KPIs will give you insight into your conversion rates, how your engagements are with clients’ audiences and how well you generate web traffic.
21 Most Important KPIs in Digital Marketing in 2022
Overall Marketing KPIs
1. Customer Lifetime Value
Omniconvert defines CLV to be “Customer Lifetime Value” and is the forecasted net profit that is generated over the course of a customer’s business relationship. CLV is not the value of their first purchase. It indicates how valuable a customer has been to your business over an indefinite time.
2. Customer Acquisition Cost
Acquisition cost refers to the amount of money needed to acquire a customer. This includes sales pitches, meetings, marketing, and any other activities that aid in your prospecting or conversion.
3. Cost per Lead
The cost per lead metric is used to determine how effective your marketing strategies are in generating new leads. A lead is someone who shows interest in your product/service by achieving an objective.
Kent Lewis, Chief Marketing Officer at Anvil asks these questions to determine their cost per lead.
“How much do we spend to generate qualified leads?” What channels are the most efficient?
4. Return on Investment
Marketing ROI can be used to calculate the return on investment of a company’s marketing budget. It’s simply the return on investment of a marketing activity relative to the amount you spent.
5. Conversion Rate
A conversion rate is a measure of whether a user has completed the desired action. The conversion rate is usually expressed in percentages. A higher percentage indicates a successful campaign. Any action can count as a conversion, including someone signing up for your email list, adding an item to their shopping cart, or booking a demo.
SEO Marketing KPIs
6. Organic Traffic
Organic traffic is generated When a user clicks on your link or land on one of your landing pages, it is from an unpaid source. Organic traffic is generally considered to be all traffic that comes from search engines like Google.
7. Backlinks: New and lost
A new backlink is a link to another website that has included a link connecting to your client’s website.
A lost backlink means that the link has been removed from another website. There are many reasons for this.
8. Keyword Rankings
Keyword rankings are a measure of the page’s position on search results pages for specific keywords. Your page’s rank for a particular keyword will determine how many people click on it. This will increase traffic and, hopefully, improve your conversions.
Also read: Top 10 Keyword Research Tools
9. Domain Rating and Domain Authority
Domain rating (DR), and Domain authority (DA) metrics were introduced by Ahrefs or Moz, respectively. They are based on a scale of 1 to 100 and tell you how authoritative and “strong” your website’s content is. Although this is not the best way to gauge the quality of your website, you can use it as a tool to track your website’s performance in search engine optimization.
10. Average Position
This is your average rank in search engine results. This number is indicative of how well you are doing.
Email Marketing KPIs
11. Open Rate
The percentage of recipients who open emails is called the open rate. Low open rates mean that your subject lines need to be improved and targeted emails created for a larger audience.
12. Delivery Rate
Email deliverability (or acceptance rate), is the success rate of a marketing agency specialist when it comes to delivering emails to client email addresses.
13. Bounce Rate
The bounce rate is a measure of whether your email was sent to the intended audience.
There are two types. They differ based on why an email was not delivered.
- A soft bounce is caused by temporary issues like the recipient’s email being too large, the server being down or their inbox full.
- A hard bounce is caused by persistent errors such as an incorrect email address, non-existent emails, closed emails, or a server blocking delivery.
14. List Growth Rate
The list growth rate refers to the rate at which your email lists expand. The better, the higher.
Every digital marketing agency must track this KPI as the goal is to increase subscribers. How will you track the growth or shrinkage of your list if you don’t keep track?
You can connect MailChimp to Whatagraph to get information on your list growth rate if you are using a tool like MailChimp. On average, you should aim to achieve 2.5%.
15. Unsubscribe Rate
The unsubscribe percentage is the percentage of email recipients who unsubscribe from your email list within a few minutes of opening an email. The lower the unsubscribe rate, the better.
Paid Marketing KPIs
16. Cost per Click (CPC)
CPC refers to the average cost per click for an ad.
17. Click-Through Rate
CTR is the number of times an ad has been clicked on. It is usually expressed in percentages. It indicates how likely people are to click on your link/ad after seeing it.
Social Media Marketing KPIs
18. Return on Ad Spend (ROAS)
ROAS indicates how much money your advertising campaign generates. What kind of return do your clients or you get on the money you spend on your ads?
19. Follower Growth Rate
The follower growth rate is an indicator of how fast your client’s account on social media is growing in followers, compared to your old follower count.
Also read: Top 10 PPC Management Software and Tools
20. Comment, Likes, and Shares
This KPI tracks and measures user engagements on clients’ social media accounts. It also identifies how many comments, likes, shares, and followers they receive.
21. Social Media Conversions
Social media conversions refer to the desired actions that the target audience takes on social media. There are many types of conversion actions. Make sure you choose carefully.
How do you choose which metrics to track?
There are no ‘one-size fits all KPI. The metrics listed above provide the best insight into the performance of your marketing strategies.
Marketing agencies need to consider their goals and the KPIs that are most relevant to their initiatives in order to determine which metrics they should track.
What KPIs you are most concerned about must be tracked according to the SMART criteria. These are the KPIs that you should be monitoring:
- It is possible
- It’s important to do so promptly
Also, you can choose any KPI:
- Digital marketers must be able to assess the outcome.
- When a goal is achieved, it must be reviewed.
- You must be relevant to your goals
- You must be given a deadline.
KPI reporting is essential for marketing strategies. When launching an ad, an SEO campaign or an email campaign, it is important to choose the right metrics to track your progress. These are the most popular digital marketing KPIs.