KPIs, Metrics and Goals of Digital Marketing
1. Measuring in Digital Marketing
There are many aspects that can be measured in digital eld , and we must know
exactly what to measure in order to make proper use of that information, take
advantage of it and lead our business to success . Sometimes businesses
measure too much and get enormous amount of data they don't know how to use
and data they don't really need. One has to have clear global vision to understand
what the more important indicators are and how to interpret / use them for proper
management of information and business.
De ne goals of business / campaign -> de ne the data to focus on -> read the
data correctly and draw conclusions to reach goals and optimise business
elements.
KPI - Key Performance Indicators
( Help developing a clear scorecard that will allow us to identify numbers and
trends of business evolution. )
Measuring is key to drawing conclusions for optimising strategies, correcting
mistakes and changing patterns in order to achieve pro tability or any other goals ,
as well as seeing if investment in any actions resulted in pro t.
Users leave large amounts of personal data, behaviour and preference data online
daily , which allows us to collect and analyse that data to bene t the Brand and
Business goals.
“What can't be measured can't be controlled,
What can't be controlled can't be managed,
What can't be managed can't be improved.”
Bene ts of measuring and controlling metrics:
1. Managing budget e ciently ( managing pro tability of each channel and
online action to optimise and distribute costs and results )
2. Improving e ectiveness of our actions and optimising conversion rate ( so
larger amount of users and target audience perform transactions upon
interacting with our digital channels and marketing actions )
3. Improving pro tability and ROI from investment in Ad Campaigns and other
actions
4. Performing better assessment of marketing actions and digital channels
performance , gaining valuable insights that enable well founded decision
making
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5. Gaining valuable insights on customer behaviour and preferences , enabling
us to predict and anticipate their needs and desires and improving brand’s
o ering, as well as customer experience across all channels and touchpoints
6. Detecting channels and marketing actions that perform best for speci c goals
and target audiences
7. Detecting most pro table channels and marketing actions
2. Goals and Objectives
Our goals and objectives have to be concrete results that can be measured and
reached by implementing a certain strategy.
Our digital strategy goals and objectives need to align with the general marketing
strategy.
Goals and KPI de nition system : SMART
⁃ SPECIFIC ( concrete results that can be measured, as in “increase web tra c
by X% compared to previous month )
⁃ MEASURABLE ( quanti able by using indicators to help us measure
performance , as in “increase average repeat purchases to X per year by 1
customer )
⁃ ATTAINABLE ( that our operations and work ow will be able to handle, as in “
reach 95% of customer service calls being attended within 30 seconds” )
⁃ REALISTIC ( that can be gained given the resources we possess)
⁃ TIME LIMITED ( possessing a limited time frame or a deadline that cans serve
as a base to measure, follow and assess our progress , as in “ increase
conversion rate on a speci c product by 20% by X date” )
Brand Goals:
1. Brand Awareness
2. Tra c , Engagement
3. Customer loyalty
Direct Response Goals:
1. Leads
2. Conversions
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Metrics and KPI
⁃ Measure - raw data unit, such as a number of value ( Ex: We sold 300 units )
⁃ Metric - group of measures/measure with an additional data point like
amount of time , amount of attempts, etc. that can be applied to a certain
goal, or track speci c processes/ asses performance of a process ( Ex: We
sold 300 units of product X over the last quarter )
- KPI - combination of a metric with the same metric from the previous quarter/
period of time. (Ex: 1st quarter - 100 units sold ; 2nd quarter - 300 units sold ; KPI
- sales growth of 200% quarter on quarter. )
KPI allow us to see how well we perform in our strategy to reach the goals
associated to the KPI, see if our strategy succeeds or fails , and with what % or
Rate.
KPI are indicators aligned with our goals, combination and conclusion of most
important metrics that we will use to measure the result of our actions of online /
digital marketing and evaluate their success or failure.
Advantages of KPIs :
⁃ Allow to measure progress of our actions
⁃ Constant, real-time monitoring of results derived from our actions , measuring
failure or success of our strategy
⁃ Detect and analyse patterns
⁃ Help solve problems and identify opportunities
⁃ Allow implementing improvements and adjustments to our strategy aligned
to our goals
We can split KPI types by channel :
⁃ Web Analytics
⁃ SEO
⁃ SEM
⁃ Display Ads and Programmatic Advertising
⁃ E-mail Marketing
- Social Media
- Mobile and App
- Universal
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Web Analytics KPI and Metrics ( how our web evolves , our tra c, how visitors
behave - allow us to optimise tra c ow , user experience , content, usability , SEO
, etc .)
-Users ( number of users who enter our web, per device. If one person enters
from a phone and a computer , metrics will show 2 users. )
-Sessions (/ # of visits to a web. Includes all visits that come from the the same
IP , so one person from one device would create 6 sessions if they accessed a
page 6 times. )
-Viewed pages ( # of pages seen on our web)
Person reads 2 articles on a web each time they connect. They connect 3 times a
day, via same phone with Same IP -> One user, three sessions , 6 pages viewed.
- Bounce Rate (% of users who enter our web and leave without any interaction .
This will indicate how relevant our pages and content is for users , as well as how
the web performs technically . )
-Session Duration (amount of time users stay on our web . If it's a landing page
with a contact form it's okay for the time to be low , but if we want for users to
browse through our content it should be higher . )
- Conversion Rate KPI ( when users perform a speci c action we want from them
on our web - mainly purchase , but can also be lling a form, subscribe to
newsletter , download, etc. )
Macroconversions relevant actions that directly a ect our pro tability or expected
result, mainly purchase of a product or service .
Microconversions actions that don't a ect pro tability directly, but potentially lead
to a macro conversion . Like subscription to newsletter, a phone call to request
info , etc.
SEO KPI and Metrics: ( Google Analytics, Google Search Console )
-Organic tra c (Analysis of users, sessions and viewed pages through visits that
arrive from Google search - organic tra c channel. )
- Indexed pages ( number of individual pages within a web that have been
analysed by Search Engine bots and added to Search Engine database)
-Reference domains (other domains that contain links to our web. )
-Keywords
If we have a goal of a speci c type of conversion, we can measure Conversion
Rate as well.
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SEM KPI and Metrics (Google Ads and Google Analytics )
- Tra c ( users, sessions and viewed pages our SEM campaigns generate )
-Bounce Rate ( highly taken into account by Google SE when indexing a web )
-Session duration
- Impressions (amount of times our content or ad has been seen. Anytime a user
opens a web or an app and our ad is visible)
- Clicks ( # of times users clicked on our ad and landed to our web - called
sessions on Google Analytics )
-CTR / Click Through Rate (# of users who clicked on our ad compared to total
of users who saw it)
CTR (%)= (# of clicks ÷ # of impressions) x 100
Ad showed 10000 times , we received 500 clicks.
CTR - 5%
Amount we pay for each click.
-CPC / Cost Per Click ( Amount we pay for each click. Maximum CPC- max
amount we're willing to pay. Indicated to Google when creating a campaign.
E ective CPC - real and nal cost we paid per each click, has to be lower than
max CPC.
CPC (%) = (Cost (total invested) ÷ Clicks gained) x 100
-CPA / Cost Per Acquisition
- Conversions (transactions that came through based on our goals - sales ,
subscriptions, contacts , etc. Allows us to measure success of our ads)
-Conversion Rate ( % of conversions compared to total of users who entered our
web or goal/landing page)
CR(%)=(Conversions ÷ Clicks)× 100
Out of 500 clicks we got 10 purchases. CR - 2%
Display Ads and Programmatic Advertising KPI and Metrics ( Actions that
can generate large impact for our brand , get leads or conversions . )
- Impressions
-Clicks
- CTR ( in Display this KPI is usually lower than in SEM campaigns )
-CPM / Cost Per Mille( Cost per every 1000 impressions ) Standard way of banner
ads purchasing . Can be measured in various ways depending on metrics we
have :
1) CPM = (Cost÷ Impressions) x 1000
We invested $5000 in an ad campaign and got 100000 impressions. CPM-50$
2) CPM = CTR x CPC x 100
We paid 955€ per each click and average CTR of our campaign is 2%. CPM = 11€.
(CTR is 2 %, to calculate CPM we need to convert it -> 0,02 × 0,55 × 1000)
- CPC/ Cost Per Click
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E-mail Marketing KPI and Metrics
-Contact Growth Rate (metrics related to our subscribers list , that allows us to
see it's growth or decline . Ideally should be steadily growing over time. Most
important subscribers are those who t into our target. )
- Unsubscribed Rate (rate at which we lose subscribers . It's growth is a bad
indicators we must determine the reason for as fast as we can . Over owing emails
, irrelevant content , etc. )
-Delivered Rate (total of emails that got delivered relative to total sent . Errors in
database or junk can cause lower rate)
Delivered Rate (%)= ((Emails sent - Bounced emails) ÷ Emails sent) x 100
-Opened Rate (# of the opened emails relative to total of emails delivered.)
-CTOR / Click Through Opened Rate (# of users who clicked on a link in the
email compared to total opened. )
CTOR (%)= (Clicks ÷ Opened Emails) x 100
-VR / Vitality Rate ( (% of email that have been shared on SM or forwarded)
Social Media KPI and Metrics, Subdivided by Goals
1.Visibility
-Impressions ( # of times a piece of content was displayed to the target audience )
- Reach (# of users exposed to a piece of our content or an ad )
We should analyse the connection between impressions / reach and time of
posting / type of message/content and format, to get better advantage from these
metrics .
-Mentions( times our brand has been mentioned. Can also be measured by
mentions of speci c hashtags )
2.Interaction or Engagement Rate
( times users interacted with us via Liker, comments, shares, etc.)
ER / Engagement Rate - amount of interactions SM content earns relative to
reach of followers or audience
Engagement metrics: (we may choose to include all or some of these in our ER
calculations.)
. Likes
· Mentions (tagged and not tagged)
. Vides views
· Comments
. Reactions (emoji)
. Shares
· Saves
·Link clicks
. Click - throughs on CTA
.Replies
. Texts
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· Direct Message
· Retweets
. Sticker taps ( stories)
· Pro le visits
·Emails
. Use of branded hashtag
· Get directions (Instagram)
5 calculation methods:
1. ER by Reach (ERR), % of users who interact with our content after seeing it.
Most common method.
ERR = (Total Engagements per Post ÷ Reach Per Post) x 100
For average ERR , add up all ERRs from the posts we want to get an average on,
and divide by # of posts.
Average ERR = Total ERR % ÷ Total Posts
( Post 1 (3.4%) + Post 2 (3.5%)) ÷ 2 = 3.45%
2. ER by posts. Engagements by follower on a speci c post. Rate at which
followers engage with your content. Best for speci c posts.
ER Post = (Total engagement on a post ÷ Total followers) x 100
Average ER by Post = Total ER by Post ÷ Total posts
(Post 1 ( 4.0%) + Post 2 (30%)) ÷ 2 = 35%
( Best to use if our reach uctuates often)
3. ER by Impressions. To measure how often comment appears on screen. Best
for paid content,
if we're running paid content and need to evaluate e ectiveness based on
impressions.
ER Impressions = (Total Engagements on a post ÷ Total Impressions) × 100
Average ER Impressions = Total ER Impressions ÷ Total Posts
4. Daily ER. To get a sense of how often our followers engage with our account on
a daily basis. New and old posts are taken into equation. Best for long-term
analysis)
Daily ER = (Total Engagements in a day ÷ Total followers) x 100
Average Daily ER = (Total Engagements for X days ÷ ( X days * followers )) x 100
If we only want to measure daily comments , we can adjust " total engagements "
accordingly.
5. ER by Views. If video is a primary vertical for your brand , we can calculate how
many people engage with our videos after watching them. Best for video)
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ER View = (Total Engagements on video post ÷ Total Video Views) x 100
Average ER View = Total ER View ÷ Total Posts)
If the goal of our videos is engagement, this is a good way to track it.
View tallies often include repeat views for a single user (non- unique views ).
While that user may watch the video multiple times, they may not necessarily
engage multiple times.
+ Cost Per Engagement. For sponsored content , when we work with an
in uencer and wish to know the ER and wether our investment is paying o .
CPE = Total amount Spent ÷ Total Engagements
3.Community Growth
-Total of followers/ fans ( New followers - Unsubscribed )
- New / Eearned Subscribers ( during a period of time)
- Lost Subscribers
4.Conversion (Interactions we get with our web that come from SM, or social
commerce)
-Clicks ( visits to our web from SM )
- CTR ( % of clicks / visits to our web ÷ total impressions on our part/s )
Mobile and App KPI and Metrics
1.General
-Total # of downloads
- Attribution (# of downloads we got from a speci c tra c source. In case we run
campaigns and use help of 3rd parties. )
2.Publicity
- Conversion Rate
-App Store Ranking (Higher ranking can increase downloads and help reinforce
marketing strategy.)
-Rating and Reviews
3.Engagement
- Duration of session (helps de ne strategies to improve user experience)
-Usability (How intuitive the app is for the user , how users navigate, how often ,
for how long , which time of day + demographic variable and device. We can
create new features on our app for better participation and increase pro t)
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-Retention and Dropout Rate
Retention- frequency at which users come back to our app after downloading it for
the rst time Let's us see how many users stay relative to previous periods of
time . Dropout -> % of users who stop using Our app within a speci c time frame
relative to other time periods . 20% of apps are only used once .
-User Experience (UX) and Navigation Flow
4.Monetization
- ARPU / Average Revenue Per User (Average revenue from active users . Lets
us segment users by " value" )
- LV /CLV/ Customer Lifetime Value
(LTV; CLTV) - Prognosis of the revenue from the entire relationship with the
customer. Depends on app type.
-Time to rst purchase (Average time between download and rst conversion. )
-Revenue (Total revenue we get from the app through purchases premium
versions , updates, games, subscriptions, etc.)
- CPI/ Cost Per Instal (For measuring and evaluating ad campaigns . Allows us to
see which channels bring most installs and pro t and which ones aren't worth it )
- Devices ( from which devices our app gets installed)
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Universal KPI
( related to conversions and pro tability of our marketing actions)
-CR / Conversion Rate ( how frequently a click or visit results in a conversion .
Clicks stand for links , CTA, ads, or posts , while visits stand for website tra c.)
CR(%) = (Total Attributed Conversions ÷ Total # of Clicks / Visits ) x 100
-CPA / Cost Per Acquisition (How much each conversion costs)
/Cost Per Action
CPA = Total Amount Spent ÷ Total Attributed Conversions
(Total sport on marketing activity ÷ Acquisition, Action, Conversion - any action
that is being measured . ( purchase , signup , etc. ))
- CAC / Customer Acquisition Cost
CAC = Total Sales and Marketing Expenses ÷ # of New Customers
-LTV / CLTV / (Customer) Lifetime Value (How much we expect to earn from
each customer in total )
LTV = Avg. Revenue Per User x Avg. Length of Relationship
-CPL / Cost Per Lead (Cost we paid for each new contact or lead we obtained
from marketing action)
CPL = Total Attributed Leads ÷ Total Amount Spent
-ROI / Return of Investment (Calculates successfulness of our investment ,
wether we are getting more money than we are putting in.)
ROI(%) - ((Revenue - Investment) ÷ Investment) x 100
If it's a product ad : + costs to conclude a sale like delivery costs and the initial
cost of a product.
ROI for brand awareness goals would require di erent measures, considering that
the bene t from awareness actions is not always monetary gain, and can be more
long term.
In these cases we better use other KPI related to a speci c action.
- Lead-to-Customer Conversion Rate
( how many leads turn into customers . Allows to gure out wether sales team
needs higher volume of leads , quality leads , additional supporting content to help
close those leads or provide better service , etc . ( Benchmarks for di erent
industries will give us an idea of what the optimal rate for us would be . )
-Multi-touch Attribution
(very few people research and buy during the same web browsing session . Most
people will start their search or stumble upon a product, go on our web and look
around , then days later search for our brand or click through an ad and purchase .
To get the whole image of the customer journey we can measure di erent
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touchpoints. W-Shaped Attribution Model credit 30% - rst click 30% - click that
created lead conversion 30% - click that created opportunity 10% all other
touchpoints.)
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