What are KPIs and what they measure?
The measurement of KPI (Key Performance Indicators) is essential when it comes to analysing and measuring our Marketing Online activity. This is why it’s important to know them and analyse them, as a good KPI management will yield better results for out Marketing campaign. For this reason a periodical research, aimed at analysing and measuring the KPI, is crucial for our Marketing strategy.
To begin with, let’s have a closer look to what a KPI is. The Key Performance Indicators are the metric used to measure if our project is in good shape. A metric is a measurement unit used to know how our business is evolving.
The most important KPIs
The KPIs or metrics more important are those that affect the objectives of our company. They are the metrics that directly affect our online business. It’s important to establish KPIs in order to measure how close we are to the marketing targets we decided to reach.
Not every KPI is necessary in order to carry on a Marketing Campaign analysis, but it’s important to know the main ones and to decide which ones are worth to measure. The most important KPI are:
Return on Investment (ROI)
We call ROI o Return on Investment is the total revenue minus the total cost divided by the total cost again, everything multiplied by one hundred:
The Social KPIs are the indicators that measure objectives and interactions in a social network. The most important social KPI is the Interaction, particularly if we are interested in measuring if our campaign is effective in terms of Engagement on Social Networks.
A second indicator is the growth in followers within the different social networks where our business is active. In this case it’s not just important to have big numbers, but the quality of followers plays an important role. It’s for this reason that we have to constantly monitor how this metric grows together with the engagement metric explained before.
The main metrics or KPI for social networks are:
- Facebook: number of followers; number of new followers; unlikes; organic or paid reach; the ratio of reach, comments, and post clicks and shares; number of gained leads; number of link clicks.
- YouTube: number of videos; number of subscribers; number of views; organic and paid visualizations; clicks on links, comments and number of shares.
- Instagram: number of content published; number of followers and new followers rate; reach; likes, comments and answers; clicks and links in the bio, paid clicks; CPC, CPM and CPA.
- Twitter: number of tweets; number of followers, new followers and unfollows; impressions, clicks and reach of a tweet; impressions, clicks and reach of an hashtag; RT; paid clicks, CPC, CPM and CPA.
Increase in sales
We need to prove that our Marketing Strategy is yielding an increase in sales.
KPI for e-Commerce
It’s important to know if an online business is actually successful and if there’s anything that needs improvement. The main KPIs for e-Commerce are: traffic sources, number of visitors, new visitors and unique visitors, time spent navigating, average number of pages viewed during a visit, exit pages, CPL and CPA, percentage of customers abandoning the cart or the checkout, clients using the chat or email, number of sales and value of sales, total requests per hour, day, week (or other time units), conversion rate, requests from new or consolidated clients, most sold or most returned products.
KPI for Google Adwords
Some of the examples of KPI for Google Adwords are: number of clicks, conversion rate, keywords, average ad positioning, CTR, CPC, CPM, CPA, ROI, value and number of sales, bounce rate, time of visit, number of views.
KPI for Facebook Ads
From time to time, companies invest in Facebook ads, but as always in these cases it’s important to monitor the results of these ads. The most important KPIs for Facebook ads are: campaign cost, ROAS, impressions, CPC, CPM, frequency, CPC, CTR, CPL, conversions.
There are four kind of traffic sources or media we can use to channel visits to the website of our business. The traffic categories are:
- Direct traffic: are the visitors that write our website URL directly in the browser.
- Referenced traffic: is the number of visitors that we receive through other websites or social networks.
- Organic traffic: visitors that land on our website through search engines. They come from you SEO strategy.
- Campaign traffic:. visitors that come to our website through one of our campaign, e.g. through Google Adwords or campaigns on social networks like Facebook, Twitter, Instagram, Pinterest, LinkedIn, YouTube…