KPI – How to correctly evaluate digital marketing.
With the right KPIs, it is possible to evaluate the results of all stages of a digital marketing strategy at a specific period and frequency.

KPI – How to correctly evaluate digital marketing.

“What can be measured can be improved” – Peter Drucker.

One of the characteristics of Digital Marketing is that it is fully measurable and all online actions can be measured, certified and calculated according to the return obtained by each initiative.

In view of so much available data, it is of fundamental importance to define the KPI (Key Performance Indicator) most suitable for each action to be monitored. With the right KPIs, it is possible to evaluate the results of all stages of a digital marketing strategy at a specific period and frequency.

The basic premise is that KPIS are relevant to the company’s objective, since the wrong indicators are likely to show wrong performances, compromising the evaluation of the strategy.

Characteristics of a good KPI:

  • Have a direct relationship with the proposed objective: The indicators chosen must clearly show whether the actions are achieving results. The number of likes on a page is not so relevant to the goal of increasing sales, for example.

  • Be easy to understand and measure: Everyone involved must unequivocally understand the data that the indicators are showing, with no room for ambiguous interpretations.

  • Be useful on an ongoing basis: A good KPI should contribute to the continuous improvement of the company, providing information that allows the adjustment of processes in the pursuit of its objectives.

KPIs vs. Goals:

The use of indicators totally disconnected from the company’s objectives, in addition to compromising the evaluation of the digital marketing strategy, can generate frustration and questions about its effectiveness. Below we list some examples of KPIs related to some possible digital marketing objectives:

  • Loyalty / Engagement: Number of likes, shares and comments of posts on social networks, number of pages visited on the website and rejection rate of these pages are valid KPIs for this purpose, which is related to the public’s interactions with the company.

  • Recognition of authority: Likes on Facebook, followers on Twitter and visits on the website or blog are indicators that prove the presence of the brand in people’s minds.

  • Conversions: If the company’s goal is to generate more conversions and reduce the cost per sale, the following KPIs can be used: number of leads generated, time to complete a sale, total number of sales and cost of acquiring customers.

  • Presence / Coverage: In this case, basically what needs to be answered is the number of people being reached with our posts on social networks, blog articles, image views on Instagram, videos on YouTube or Vimeo, etc.

  • Capture: Monitoring capitation on social networks will require tags with values recognized by the web analysis tool in all messages and campaigns. In this way it is possible to measure its effects on traffic and conversions. It is also possible to include a financial reference value for viewing an ROI estimate, based on the average cost per visit generated by campaigns such as Google Adwords or Facebook ads for example.

  • Customer retention: Maintaining customer proximity in order to guarantee success and increase the chances of new purchases can be measured through indicators such as: Support tickets and Lifetime Value Estimation (value spent by the customer with the company during the cycle and purchase).

  • Generation of new leads: Obtaining data through exchange for relevant content in the form of e-books, infographics, etc. can be monitored by surveying the number of leads generated and the cost per lead.

  • Increase in sales: Indicated for those who work with e-commerce, the KPIs that indicate the success of the strategy to increase sales can be: number of sales, cost per sale (in the case of sponsored links, for example) and conversion rate .

Inbound marketing allows you to track a large volume of data that can generate bulky reports every month. That is why it is very important to know what to track, how to refine analytical reports and identify the KPIs that are actually relevant. Most importantly, they prove ROI and not just popularity.

 

Leandro Correa

Beat Communication

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