Is your digital marketing generating the leads you need? If not, now is the time to catch up on your KPIs.
Key Performance Indicators (KPIs) are the measurements that indicate whether a company’s marketing tactics are working effectively. KPIs differ slightly per organization, of course, but there are a common set of digital marketing metrics all companies should measure.
Whether you are looking to enhance your email, social media, digital ads or website marketing performance, KPIs are the best tools you can use to reach higher goals. Marketing success is the result of measuring and adjusting tactics (optimization) to bring in more traffic and more leads.
In this article, we look at the common KPIs for websites and pay-per-click advertising (PPC).
Click-through rates (CTR) are a measurement of how often a PPC ad or a link is clicked. CTR is most used to measure digital advertising effectiveness. It is a qualitative measurement. A higher CTR means your ads are more effective. It also means greater interest in your company and its products. Anybody can post an ad or a link on the web; CTR tells you if that link was appealing enough to be worthwhile.
How it works: The number of clicks that your ad receives divided by the number of times your ad is shown: clicks ÷ impressions = CTR.
Conversion rates are useful when you want to know how well your advertising is convincing visitors to click on an ad and then complete a predetermined action — for example, completing a form or making a phone call. By measuring how many people not only clicked, but actually converted, you get a deeper glimpse into your digital marketing effectiveness. A high conversion rate is an indicator of how effective your calls-to-action are.
How it works: The number of customers converted from site visitors to paying customers divided the number of clicks that can be tracked to a conversion during the same time period: converts ÷ total ad click converts
Time on site and pages per visit. These are website measures that go hand-in-hand. Time on site measures how long, on average, visitors spend on your website, per visit. A longer time on site suggests you have good content that visitors are spending longer time engaging with. Pages per visit, as the name suggests, tells you how many pages visitors look at, per visit. Both of these measures tell you what visitors are interested in and how interested they are.
Bounce rate is measure of how many website visitors navigate away from your site after viewing only one page. A high bounce rate indicates that visitors aren’t liking what they see or are seeing the wrong content when they get to your site and they aren’t staying around. The goal is to have a bounce rate under 50 percent. If you
How it works: Total number of bounces across all the pages on the website ÷ total number of entrances across all the pages on the website
Website visits is is a count of all visits to your website, regardless of how many times a particular individual came to the site. It is an all-encompassing, aggregate number. It is the equivalent to how many times the door was opened. The more you are seen the more visitors you will gain.
Website unique visitors is the number of unique individuals who visit your website. If the same person returns to your site, they are only counted once as one unique visitor.
Return Visitors Versus New Visitors. New visitors is an important performance indicator because it tells you how much “new blood” your website is attracting. A high percentage of return visitors means people are coming back to your site because they view it as a valuable resource containing useful information. Return visitors also indicate that your other marketing efforts, such as social media and email marketing, are working.
Why are KPIs Essential?
Utilizing measuring and adjusting tactics you use to bring in traffic can lead to marketing success. If you are looking to make more leads, the more you understand about KPIs, the better. Keeping track of your visitor interactions and optimization measurements is important for knowing what steps to take next.
At Biznet, we are marketing experts helping companies utilize marketing tools to produce more lead generation. We offer high quality services that will ensure a beneficial experience. Check out our digital marketing services page to see all we can do to help you when your marketing questions arise. Or give us a call at 248-560-9000.