Part two of the “Basics of Digital Marketing” video series continues as we explore key performance indicators (KPIs) and the important role they play in marketing campaigns. A KPI can be defined as a metric that measures the performance and effectiveness of any business process or task. Its goal is to assess current results, optimize, and make adjustments to strategies.
Digital marketing performance results can be hard to understand if you aren’t using the right KPIs. Without proper understanding when implementing them into campaigns it is possible to oversimplify marketing performance, which could lead to poor results. Overall, each KPI should be specific to your business.
Marketers should use this information essentially as a roadmap for their digital strategy, guiding them along a path that provides information on what is working and what is not, better leading them towards their intended results.
As Danny mentioned, some examples of a KPI include:
- eCommerce transactions
- Form submissions on website
- App downloads
- In-store foot traffic
To properly implement KPIs into your campaign, a good idea is to set clear goals. To do this, they should meet the SMART principles, which include:
- Identify a specific business goal
- Be measurable
- Be achievable
- Be relevant for overall business goals
- Be time-phased
Another important tool for monitoring KPIs is Google Analytics, which helps determine the performance of your website, with the potential to convert site visitors into customers. This platform can track returning users, bounce rate, average time spent on the page, among many other important measurable parameters.
Basics of Digital Marketing Series
This is the second installment in our three-part digital marketing series. To view the first article in the series, click the link below.
Part I: How to Get Started
Part II: Key Performance Indicators (KPIs)
Part III: The Marketing Funnel