What is KPI (Key Performance Indicator) in digital marketing?
Posted: Wed Dec 11, 2024 4:27 am
In an increasingly saturated market, marketing is an indispensable tool to differentiate yourself from the competition and directly reach your target audience . However, every marketing campaign must be measured to evaluate its effectiveness and make any necessary changes along the way. To make these measurements, it is necessary to determine the KPIs.
What is KPI in marketing?
The term KPI stands for Key Performance Indicator , and refers to a series of metrics used to analyze the effectiveness of the actions carried out in a company . Also known as facebook database quality indicators or key business indicators, they can be used in any sector, although they are very common in marketing.
KPIs provide useful information to determine whether the intended objectives have been met and facilitate decision-making on certain commercial or advertising strategies . They allow us to know whether the actions are giving the expected results or, on the contrary, corrections are necessary.
What are the main KPIs in marketing?
There are dozens of KPIs in the marketing field, but they all meet a number of requirements that ensure their reliability. A key performance indicator must be specific, objective, quantifiable, concise, relevant, periodic and, of course, measurable. A survey conducted by eMarketer among marketing specialists revealed which are the most important KPIs in their work:
Conversion rate. This KPI in digital marketing refers to the percentage of users who perform a specific action, from a purchase to a download, a registration or a reservation. It is a key indicator because it clearly shows how effective the marketing strategy is and is obtained by dividing the number of objectives achieved by the unique users who visit the website.
Return on investment. Measures the economic performance obtained from making an investment, allowing you to know how much money has been generated with a social media or email marketing campaign, to assess whether it has been profitable or has not yielded the expected results. This indicator allows you to set more realistic goals and identify the actions that generate the greatest return in order to make smarter investments.
Customer lifetime value. This KPI refers to the total revenue a company can expect from a customer account, so it reflects the value of that customer. It is a particularly important metric because it allows you to identify the most valuable customer segments to optimize lead nurturing strategies . Additionally, by taking into account the cost of customer acquisition, it helps determine how long it takes to recover the investment when acquiring a new customer.
Web traffic sources. This KPI refers to the ways in which users access a website. Basically, users can access it directly by typing the website's URL into their browser, through search engines or sponsored ads on them, as well as by clicking on the link on another website or social network. This key performance indicator allows you to know which channels generate the most traffic and conversions in order to reorient your marketing strategies.
Marketing Qualified Lead. This indicator confirms that a marketing strategy is well focused as it indicates a qualified lead that has shown interest in the brand or content on different occasions and can become a potential customer when within the MOFU ( Middle of The Funnel ) phase.
Of course, there are many other marketing KPIs, such as social media engagement , bounce rate, number of newsletter subscribers or returning visitors. Before launching a marketing campaign, you will need to choose the most relevant KPIs based on your campaign objectives and what you want to measure, in order to have reliable data.
If you are interested in everything related to marketing and measurement, with our Online Web Analytics Course you will learn to use the most useful tools on the market to develop digital marketing plans and make data-driven decisions.
Don't miss this opportunity. Discover what a Marketing career is all about and learn about all its professional opportunities .
What is KPI in marketing?
The term KPI stands for Key Performance Indicator , and refers to a series of metrics used to analyze the effectiveness of the actions carried out in a company . Also known as facebook database quality indicators or key business indicators, they can be used in any sector, although they are very common in marketing.
KPIs provide useful information to determine whether the intended objectives have been met and facilitate decision-making on certain commercial or advertising strategies . They allow us to know whether the actions are giving the expected results or, on the contrary, corrections are necessary.
What are the main KPIs in marketing?
There are dozens of KPIs in the marketing field, but they all meet a number of requirements that ensure their reliability. A key performance indicator must be specific, objective, quantifiable, concise, relevant, periodic and, of course, measurable. A survey conducted by eMarketer among marketing specialists revealed which are the most important KPIs in their work:
Conversion rate. This KPI in digital marketing refers to the percentage of users who perform a specific action, from a purchase to a download, a registration or a reservation. It is a key indicator because it clearly shows how effective the marketing strategy is and is obtained by dividing the number of objectives achieved by the unique users who visit the website.
Return on investment. Measures the economic performance obtained from making an investment, allowing you to know how much money has been generated with a social media or email marketing campaign, to assess whether it has been profitable or has not yielded the expected results. This indicator allows you to set more realistic goals and identify the actions that generate the greatest return in order to make smarter investments.
Customer lifetime value. This KPI refers to the total revenue a company can expect from a customer account, so it reflects the value of that customer. It is a particularly important metric because it allows you to identify the most valuable customer segments to optimize lead nurturing strategies . Additionally, by taking into account the cost of customer acquisition, it helps determine how long it takes to recover the investment when acquiring a new customer.
Web traffic sources. This KPI refers to the ways in which users access a website. Basically, users can access it directly by typing the website's URL into their browser, through search engines or sponsored ads on them, as well as by clicking on the link on another website or social network. This key performance indicator allows you to know which channels generate the most traffic and conversions in order to reorient your marketing strategies.
Marketing Qualified Lead. This indicator confirms that a marketing strategy is well focused as it indicates a qualified lead that has shown interest in the brand or content on different occasions and can become a potential customer when within the MOFU ( Middle of The Funnel ) phase.
Of course, there are many other marketing KPIs, such as social media engagement , bounce rate, number of newsletter subscribers or returning visitors. Before launching a marketing campaign, you will need to choose the most relevant KPIs based on your campaign objectives and what you want to measure, in order to have reliable data.
If you are interested in everything related to marketing and measurement, with our Online Web Analytics Course you will learn to use the most useful tools on the market to develop digital marketing plans and make data-driven decisions.
Don't miss this opportunity. Discover what a Marketing career is all about and learn about all its professional opportunities .