You can ask any Marketing Manager, Digital Director or even an external team like digital agency about the distinct advantage of digital marketing over ‘traditional’ marketing, and the answer is that everything is measurable and understandable in digital about results marketing benefits that bring to the business.
There are many tools for measuring performance and getting detailed information about our users and their actions, but like any tool, you need to understand how it works first and how to use it to reach conclusions based on your digital efforts. In the next article, we will review our methods and how we measure successes in the digital world.
First, what is KPI?
A KPI (key performance indicator) is a measure that can explain to us how great company goals are being reached.
Let’s provide you an example, if you’re a campaign manager who generates digital campaigns for providing leads to the sales departments, then you might set KPI’s about what ad offers the most accurate results per user’s session.
You need to make sure that your KPI’s are based on your company strategy: sales strategy, marketing strategy, operation strategy, etc. KPI’s must be practical and quantitative.
Why are key performance indicators important?
- Performance management
- Boost morale
- Target measurement
Once there is complete transparency between the team members and between the various teams, everyone looks at a common goal, and there is cooperation between everyone to achieve high performance. The organization is the first to enjoy this but also what more fun is that teamwork brings success.
KPI’s answer is raising morale as well. Why? Because your employees, managers and even yourself can enjoy the ability to evaluate your performance, yet if some of the performance has not met 100 percent of the goals, you can improve and learn to the next time, it helps morale and brings the whole team to success.
KPI helps to measure goals. Once we have a clearly written target on the wall, we know how to measure it. We can break it down into sub-goals – by teams, by achievements, etc.
The transition from offline to online and how does it improve our measurement abilities?
- In the past when we wanted to measure metrics, we defined goals, but it was challenging to measure results and understand what was wrong during the process and how we can be improved in the next time.
- As of today, when we know in the digital world where each user came from, what was his flow, on what ad he/she clicked on, and which ad converted best = brought us the best business results in front of other ads, we improve our ability to measure results and be able to draw conclusions that will lead to an immediate business increase.
- In general, in the digital world, it is easy for every marketer to set annual, monthly and even weekly goals per customer, per category, and other metrics that help us to make our business indices better.
What is necessary to focus on when doing digital measurement
Firstly, we should ask ourselves “what do we want to achieve,” this will be our base, and then we can measure if we have achieved it.
The different goals are divided as follows:
- Performance targets – Leads or sales and their indices – Lead price and return on investment (ROI). In this situation, we have evident and significant success measures:
- How much does it cost us to sign up for a mailing list?
- How much it cost us to generate a lead.
- How much does it cost us to produce a sale or to transit a lead to a customer?
- Traffic targets – traffic to a website / landing page / other digital asset
- The main target here is to maximize the site traffic, in this case, we have some difficulties in measuring our results because it’s not a numeric measurement like the number of leads.
- We’ll focus on bringing traffic, where we promote content – for example, a new article on our blog, or a PR article about the business.
- In this case, the measure of success is to minimize as much as possible the price we pay for incoming traffic = the price per click.
- As we increase site traffic and decrease CPC, we succeed in measuring.
- Engagement targets – likes, comments, video views, new page fans
- Time spent – how long visitors spend on the site. When we promote content (like an article), we would like to see time spent parameter that reflects a reading of the article by its length.
- Abandonment rate – we would like to see a significantly lower bounce rate, as this indicates the interest that users discover in the content of the site.
- Other possible metrics – video watching, download a file, answer a questionnaire, we’d like to follow all these steps and see how many visitors are doing them. Performing a variety of activities on the site naturally indicates the level of interest and users engagement.
There are two types: social media engagements and website engagements. Here are the measurement parameters for your website:
- Exposure goals – number of exposures and the number of people (Uniques) exposed to our content.
Today, using digital tools we can know with high accuracy the user’s exposure metric, such as which users were exposed, what they viewed and other parameters of engagement
Exposure targets measure in two main metrics – impressions – how many times my ads have been exposed in total, and unique impressions – how many people have seen my ads (on Facebook this measure called reach).
In the digital world, it is easy for every marketer to set annual, monthly and even weekly goals per customer, per category, and other metrics that help us to make our business indices better.
How can we help you measure success?
Omnis Digital Agency will help you understand the indicators you use today, if these are not existing, we will create those for you, we will improve the various digital areas and show you through the indices the results we can achieve.
Contact us today.