KPIs, or key performance indicators, refers to metrics that are used to measure the success of a marketing campaign or tactic.
These KPIs help marketers and businesses alike see the value in their marketing and can help guide future marketing decisions. Establishing and monitoring KPIs can help justify your marketing efforts and guide future business decisions.
Establish Channel Specific KPIs
Marketing successes can take place on a variety of channels, from social media to your business website.
While some metrics – like reach and ultimately conversions or sales – make sense to measure across all channels, establishing specific KPIs to measure each specific marketing channel will provide the most insightful data.
Here’s an example. On your website, it may make sense to track the number of visitors, pages that get the most clicks, pages that cause people to leave the website the most, and the number of newsletter sign-up form fills. However, many of these things can’t be tracked on a social media platform like Facebook, so tracking things like engagement and impressions there would be more measurable.
The frequency in which you check your KPIs should be determined by a variety of factors as well, such as what you are measuring and how large your business is.
For certain businesses, it makes sense to track each newsletter sign-up and unsubscribe every single day. But if you run a large e-commerce website, tracking this daily would be a full-time job. Instead, measuring monthly or quarterly newsletter sign-up growth versus decline would be a better use of time and provide a bigger picture outlook.
It is important to note that no matter which KPI on what channel you are checking on, you should be checking in on it at a set frequency. This doesn’t have to be done daily. For most metrics and most businesses, measuring KPIs on a monthly basis is a good starting point.
Tie Budgets to Results
One of the biggest advantages of keeping track of your marketing KPIs is that it helps tie back campaign budgets to results. This can show your business data, like the average cost to acquire a customer and how much was spent on a marketing campaign versus how many sales that campaign generated.
These financial data sets will help justify the need for marketing campaigns to higher-ups within your organization and help you see which marketing campaigns are worth investing more money in for the future.
Without establishing KPIs, measuring the success of your marketing efforts will become vague and hard to compare to other tangible data.
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