KPIs or Key Performance Indicators are relevant metrics to be analyzed when creating marketing strategies for companies in digital. This monitoring is necessary to assess whether the campaigns developed are performing as expected.
Imagine you have a digital need, like increasing the number of visitors and conversion on your store's website, for example. For this, a campaign is carried out on media such as Google and on social networks (Instagram and Facebook) to publicize the site and direct its audience to it. From that, how do you know if this strategy is working?
The Key Performance Indicator (KPI) points out data that helps a performance marketing team to find opportunities for improvement and execution flaws to correct them in time to achieve the goals of a campaign. It is essential to measure stock returns. Based on this analysis, it is possible to change the route or give direction to the strategy as a whole.
In this text, you will understand a little more about the subject and learn about the main fundamental KPIs to be analyzed.
Contrary to what many people think, KPI is not the same thing as a metric. The difference is that metrics are at an operational level and indicators at a tactical level. While the first measures values and quantity, the second is calculated measures, usually represented by percentage with a broader and more targeted view.
Now, find out which are the main indicators that need to be analyzed in a performance marketing strategy.
Return on Investment (ROI) shows whether the money invested in a campaign has brought a satisfactory return to the company. ROI encompasses various expenses, including outside of digital marketing, expresses an overview of the financial health of the operation.
The average ticket is how much each customer spends, on average, in the virtual store. This indicator is calculated by dividing the revenue (revenue) by the number of sales in a period of time.
A very low average ticket can provide important insights, such as showing that the product recommendation system needs to be improved or that customers are struggling to find what they want in your e-commerce. This marketing KPI allows a new strategy to be traced to intensify your business.
This KPI indicates the percentage of your website visitors who took an action, such as filling out a form or clicking a button to complete a purchase. It's critical to find out if your campaigns are attracting a qualified audience that can actually buy from your company.
The click through rate (CTR) indicates the ratio between the clicks on your ad and the number of times it was seen. So it is the division of the number of clicks by the number of impressions. In an ad with 5 clicks and 100 impressions, for example, we will have a CTR of 5%.
Cost Per Click is how much you pay for each click your ad receives. In Google Ads and other platforms, you can set a maximum CPC value. However, most of the time it pays a lower amount, known as the real CPC, calculated on several criteria.
The Cost per Thousand Impressions is an alternative to charging CPC. With it, instead of paying for clicks, you pay whenever your ad is displayed a thousand times. Which can be interesting depending on your strategy.
A lead is basically any consumer who has shown interest in the products and/or services your business offers, either by subscribing to your newsletter or downloading an ebook in exchange for your contact details. Thus, this indicator indicates the number of leads your business has.
No lead is a guaranteed customer. He will only be a customer after crossing the entire sales funnel to the final stage: the purchase stage. The leads at this stage are called Sales Qualified Leads (SQL). And this indicator points out exactly how many SQL leads your business has.
The Lifetime Value means “lifetime value of the customer”, is a projection of how much in future revenue and profits a customer can generate for the e-commerce during his whole life.
The Cost per Conversion (CPA) indicates, on average, how much each conversion costs your business. This indicator is available on Google Ads, Facebook Ads and other platforms.
ROAS is an acronym for Return on Advertising Spend. It's like a unique ROI for Ads. Thus, it indicates what has been the return of paid media strategies used by e-commerce.
Examples of key KPIs in each channel:
Now you know the importance of Marketing Indicators or KPI and which are the main ones that need to be analyzed to know if the strategies are giving a good result and what needs to be adjusted. 4leads is an expert in analyzing data and metrics, as well as interpreting them in a simple way for customers to understand.
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