Determining your key performance indicators and setting quantifiable goals to help you to monitor and measure your marketing success is not always easy. In most cases, the numbers do not follow a straight linear path to a reliable conclusion. For that reason, many people use KPIs when analyzing their campaigns.
What is KPI?
If you’re not familiar with the term, KPI refers to Key Performance Indicators that have been created to help you to determine your level of success in marketing. With KPIs you can establish your expectations and using that as a measure and determine whether or not your efforts are having a positive impact. Learning how to use this valuable tool will make it much easier to determine whether or not your campaign is yielding the results you want or not.
How to Determine Your Marketing KPIs
One of the first things you need to do in determining your KPIs is to decide what metrics to measure. This is an important step, because if you choose wrong, the feedback you get won’t really help you to determine an accurate result from your campaign. To ensure that your measures are applicable, analyze each one to determine if they will have any type of impact on your business’ overall targets or goals.
To help you do this, consider your KPIs as part of a conversion. Anytime you have a valuable interaction online with someone outside of your company, you could consider this as part of a conversion. Only you can know what efforts will actually work as a conversion or not.
If you are still wondering what to measure, consider these two points.
Measure things that are in line with achieving your company’s goals.
Look for leading indicators that give you a sign of which direction the economy is moving. This can let you know if your endeavors are worth your time and effort.
On the other hand, you should avoid trying to use anything that you cannot have an impact on as part of your KPIs. Nor should you include any metrics that lean towards vanity but has no direct impact on how the traffic moves; for example, an ambitious managing director who is aiming for a position at the top of Google or a keyword that doesn’t generate any new traffic. These do not work towards changing any significant part of the business so should not be factored into your KPIs.
Measure things that are in line with achieving your company’s goals. Look for leading indicators that give you a sign of which direction the economy is moving.
In some cases, your KPIs need to be specific to a certain channel while others will be more focused on the overall objective of your business. You will most likely need both in order to get an accurate measurement of your results. It is important to note that when you are dealing with channels it is not necessary for all of them to have the same KPI. Some will have different levels of impact on the bottom line, so they each need to be measured differently.
Connecting Your Budget to Your KPIs
This is especially relevant when working with PPC Campaigns. No matter where you are in the whole scheme of things, if you’re a part of the business perspective, you will have your own opinions about which KPIs you think should be achieved and how they affect your budget. Inevitably, your clients will expect to see results based on the budget they have set aside; often before any research has been done or without any professional input.
For example, they may ask for a set number of conversions based on the amount of money they have set aside for the budget. Unfortunately, in such cases, the numbers may not add up. The cost in a pay-per-click campaign for example, may exceed the budget. You may need to suggest that they take strategies to lower the cost per click and/or raise the conversion rate. Regardless, the budget set aside may not be sufficient enough to get the returns they expect, and you will have to use your professional opinion and expertise in order to bring the two elements together.
When determining your KPIs, there is a lot to take into consideration. No matter what you do, it is essential to the success of your project to take the time to plan your KPIs carefully. One of the best benchmarks for success is the ability to choose a good KPI. You may not be able to hit the mark perfectly the first time, nor will you hit it just right every time, but the more effort you put into the planning phases of this marketing element, the more proficient you’ll be in predicting what can be accomplished and measure its success in your marketing efforts.