To be strategic in business, it is necessary to analyze the correct digital marketing indicators. Learn more about them in this post!
With more and more opportunities and competition in marketing media, you can’t waste your time with mistakes in marketing strategy. That is why it is necessary, today more than ever, to be aware of some digital marketing indicators to ensure that your campaigns are on the right track.
These numbers can help you know which parts of your strategy are working well and which parts need adjustment. Having this information in time can be decisive in turning problems into opportunities.
However, how do you know which way to go? There are many metrics available in the digital environment, which can confuse even those who already work with it. For this reason it is very important to choose the right indicators to constantly improve and innovate your strategies.
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What are digital marketing indicators?
Before naming the main KPIs that you should analyze, it is important to explain the concept of KPIs or digital marketing indicators as a whole.
KPI stands for Key Performance Indicators. In other words, they are the essential metrics to define whether a strategy is working well or not.
They are data that will help you in making decisions. Without them, you cannot know precisely what future steps to take.
In addition, KPIs are essential to generate performance reports, with the main numbers that a business must present, showing utility, profitability, engagement, reach, among other information.
Let’s see an example. If the objective of your business’s digital strategy is to increase the reach of your website, monthly monitoring of the number of visitors is essential.
Therefore, the number of visits can be treated as one of the main indicators of the blog and also one of the ones that exerts the greatest influence on the results, since it shows, with numbers, if the strategy is being successful or not.
Why apply KPIs in your marketing strategy?
Every company should apply KPIs in their marketing strategy to measure results more intelligently, especially in the case of small businesses.
Any strategy, no matter how good, needs to be constantly monitored and supervised. Only in this way is it possible to promote improvements in processes and identify possible deficiencies in the business.
In a small business with limited resources, this becomes even more important. Since, with concrete data, you know where and how to invest, without wasting resources, in actions that will not be effective.
Also, working with well-defined KPIs is a way to monitor the constant growth of your company, not only to set goals, but also to find partners and investors.
If the company is really profitable and shows scalability, it needs to have numbers to back it up.
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Most important digital marketing indicators
Now that you know what digital marketing indicators or digital marketing KPIs are, it’s time to explain the ones that your brand should monitor frequently.
Discover the digital marketing indicators that could make your business grow!
1. Conversion rate
The idea behind monitoring digital marketing indicators is to be sure that your actions are working, right? So you need to start with a metric that gets right to the point and shows you how successful your initiatives are achieving.
The points to the percentage of people influenced by your content who converted in some waythat is, they bought a product, subscribed to a newsletter, marked a visit or any other action you are looking for.
This rate reveals the effectiveness of your campaign. In other words, a low conversion rate means that you are not convincing your target audience that your offer has value.
2.ROI
All areas of a company need to get used to calculating the (return on investment). The ROI aims to show how much a certain action, campaign and even some segment is generating in terms of financial gain.
The idea is to always have a return greater than the initial investment. Monitoring the ROI helps to walk towards that goal, also allowing you to trigger an alarm when you perceive that something is not right.
Do you want to know how to calculate the ROI of any initiative of your company? Then look at this formula: ROI = (value of the profit obtained – total value of the investment) / value of the investment.
3. Bounce rate
Is your content really pleasing the public? A great way to be sure is to measure your . But what is rebound?
This digital marketing indicator indicates when a visitor arrives at your website and immediately leaves it. This indicates that perhaps this person did not find what they were looking for, or that the page was irrelevant.
To prevent your bounce rate from increasing, you need to analyze your content and what your audience is looking for. Thus, you can prepare relevant content.
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4. Click-through rate
Some actions are intended to drive your audience to a certain landing page. Monitoring the effectiveness of your marketing pieces at that moment is very important to understand the performance of your campaign. So, it was time to know the click-through rate.
If people aren’t clicking on your offers, you need to do something. It could be that the writing is not persuasive enough or maybe your image has not inspired that action.
The calculation of the click rate is quite straightforward: just divide the number of people who clicked on your offer, by the total audience. As you must already be imagining, the idea is to keep that amount always growing.
5.CPM
The acronym CPM stands for Cost Per Thousand Impressions. This digital marketing indicator is generally used to measure the results you achieve in paid media campaigns focused on visibility and brand recognition.
In other words, since the objective is that many people see you, it makes sense to calculate how much you are going to pay for disclosure per volume of views. Most of the social media platforms today give the option to use CPM, such as Google Ads and Facebook Ads.
Do you want to know how to measure it? It is simple: just divide the total cost of the campaign by the number of impressions the ad received, and then multiply the result by 1,000. Being on the right track means keeping that value as low as possible.
6.CPC
This is another of the digital marketing indicators related to the collection of media campaigns. The CPC stands for Cost Per Click, and as its name already indicates, it has to do with a very specific action, which is the click to the destination of the ad.
In many cases, it may not make sense to want only views. It may be that you want to bring people to your website, for example. So, the form is the CPC modality so that the click rate is the.
Calculating CPC is quite simple: just divide the cost of the campaign by the number of clicks you achieved. That is, a low CPC should always be the most desired.
7.CPA
CPA stands for Cost Per Action. This is also one of the digital marketing metrics used to measure paid social media spend. Using it, the most important metrics for your brand will be the actions.
Actions? They occur when you want someone to convert, buy a product, sign up for a service or newsletter, fill out a registration form, among other things.
The CPA is calculated by dividing the total cost of the campaign by the number of actions that have been achieved. In this way, it can be said that a low CPA means that you are managing to sell more with less.
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8.PLC
Another critical metric is CPL, which stands for Cost Per Lead. Its mission is to define how much a potential client costs.
It is a metric that helps to evaluate the quality of your marketing strategy, especially if you work with high-priced products. If you spend a lot just to get an edge, it’s a sign that there’s something wrong with the strategy.
To calculate CPL, simply divide the value of your total marketing spend by the number of leads you earned. In this way, it will be easy to have the average value of how much each lead cost your business.
9. CAC
CAC (Customer Acquisition Cost) is another of the most important KPIs for any business. Its objective is to assess what the real cost of acquiring a customer is for a business.
Unlike CPL, which measures the value of each lead (business opportunities), CAC measures how much each customer who actually made a transaction costs.
It is calculated in a similar way, that is, dividing the total spent on marketing actions by the number of clients obtained.
10. ROAS
Finally, we have ROAS, an acronym for Return Over Advertising Spend, which measures the return obtained by the ads published by a brand.
To calculate ROAS, you divide the total value of sales by the amount spent on paid ads. In this way, the average income of each ad is obtained.
This data is essential to understand if the investment in paid ads is generating positive effects on sales.
Start monitoring your digital marketing indicators
Now is the time to do a detailed analysis of your strategy. There is only one way to know if it is generating value for your company: by following your digital marketing indicators. Only then will you have a Data Driven business, that is, powered by data.
Take into account your goals and objectives and start analyzing the metrics. From there, see what needs adjustments and learn how to make your work more and more strategic.
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