# Marketing

Why is having KPIs important for digital marketing strategies?

Red Rocket TeamNov 4, 20244 min read

The position of a marketer actually appeared several centuries ago. However, marketing gained widespread popularity and demand when computers became a common thing for people. Marketers help businesses to become better, attract more customers and get ahead of their closest competitors. This is very important because every year, more than 4 million companies appear that can catch the attention of your potential customers.

That's why having experienced marketers on staff who know how to move your company forward and increase brand awareness is essential. Certainly, some of the most key items on the staff are analyzing and tracking digital marketing KPIs. What are they, and what are the most important metrics for marketers? All these questions will be answered in this article because we have a lot of interesting information.

Understanding importance to measure KPIs for digital marketing campaign

Imagine that you are a director of a small company and you have the task of fully staffing a team of employees with managers. How will you evaluate the results of completing this task? Surely, you just need to determine the number of managers recruited to your company. The situation is similar to digital marketing. The feature is that the average marketer has a whole set of responsibilities and tasks, so the performance metrics can also be different.

It's no secret that the marketing funnel consists of three stages: awareness, consideration, and decision. For your efforts to be effective, you must track results throughout all three stages. For example, first you look at the number visited the website or app. Next, it's important for you to see what behavior users had and how much time they spent on your resource. The last stage is to see how many specific actions were performed by customers (purchase, subscription, leaving an application, and much more). Only this comprehensive approach to measuring KPIs for digital marketing will help you see how successful your company has been.

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7 Main key performance indicators for marketing

Some famous businessmen and marketers say that launching an advertising campaign without tracking key performance metrics is a pointless job. This way you invest your money and don't realize whether you are getting normal results or not.

As we said above, there are many KPIs in marketing that will be useful to pay attention to depending on what task you have in front of you. We have gathered seven examples of KPIs in marketing for you. They help you evaluate your advertising campaigns and optimize them if necessary.

1. Traffic

What to use for measuring: Google Analytics

Do you remember the marketing funnels that have already been mentioned in this article? The first one is awareness when a user visits your site and familiarizes themselves with your product or services. This is the stage where it is important to track how many people have visited your website or mobile app due to an individual ad campaign.

Today, there are many relevant methods to get traffic to a website. For example, one of the most effective ways to attract as many users as possible to visit your resource is search engine optimization. In simple words, people find your site themselves with the help of search networks and key queries. If you are engaged in SEO or link building, you should constantly monitor traffic indicators. Don't forget to compare your current traffic numbers with those of previous months. It will also be useful for you to look at your competitors' visitor counts to see how your business is doing.

2. Click-Through Rate

What to use for measuring: Google Ads and Facebook Ads Manager

Obviously, you don't have to limit yourself to SEO promotion to succeed in your niche. You can promote your brand, website, content, products, or services in many different ways. For example, one popular way is mailing to potential customers or other companies to collaborate. At this stage, it is important to evaluate the next digital marketing KPI, which is called click-through rate (CTR). What is it?

This indicator shows you how many clicks you received from a particular link or ad. For example, you sent 100 links to different email addresses, and now you need to see how much clickability you have. To do this, you need to divide the total number of clicks by the total number of impressions. The resulting number should be multiplied by 100 to see the result as a percentage.

It is considered that the normal CTR should be about 5 percent. This figure can be both higher and lower. It all depends on your niche, company characteristics, and goals.

3. Cost-Per Click

What to use for measuring: Google Ads and Facebook Ads Manager

It is no secret that the most effective promotion on the Internet is the pay-per click advertising model. Thus, you form a certain budget, prepare a banner or other object for promotion. Such advertising can be different, including social media, search engines, videos and more. As in other cases, it is important for marketers to calculate the cost per click to understand how effective this advertising campaign is. CPC is another important metric from the list of KPIs for digital marketing campaign. Here's how it works in real life:

After making an analysis, you determined that you were willing to allocate an advertising budget of $1,000. As a result, the total number of clicks from this ad was 500. It is necessary to divide the amount of the budget by the number of clicks received to see the CPC. In this case, this figure is 2 dollars (1000/500).

The price per click depends on many factors, including target audience and region. It is believed that the audience from the USA is the most expensive in the world. Normal rates here are 2-5 dollars per click. However, the niche in which you work also affects the pricing.

4. Sales Volume

What to use for measuring: CRM system

Your major concern as a business is to make a sale and profit. The sales volume KPI can be interpreted as the total number of products sold or the total revenue in a given period of time. Monitoring the sales volume ensures that revenue is generated as required to enable the organization to continue running profitably. You should measure sales volume in terms of monthly frequency, and the results make up a comparison with the prior time periods. An advertising campaign may be suboptimal and need tweaking or you may need to weight your budget towards higher metrics of marketing channels.

What if you don't have the opportunity to spend thousands of dollars a month to promote your brand? Don't worry, today there are a number of methods to grow online with a minimal budget. Start with advertising that doesn't require a lot of money, and gradually promote yourself online.

5. Number of Feedback Received

What to use for measuring: Zendesk, Trustpilot, and Google My Business

Customer insight gives valuable information about their satisfaction and preference towards a given product. Satisfaction, in contrast, can be managed by proactively seeking and recording feedback at different intervals or inviting it by means of surveys, comments, or reviews. In particular, the quantity of feedback is what shows the number of responses collected. The more responses one collects, the more one gets to know strengths and weaknesses that are likely to be seen on social media, in a digital campaign, a call center, or in-store.

It is also possible for marketers to differentiate feedback or responses based on factors such as location or history of purchase to help locate possible areas of further improvement. Finally, those who find the time to give feedback are usually the most committed customers; hence, high feedback response rates are a measure of relationship commitment. Tracking this will help in making better-targeted messages, benefits, and touchpoints.

6. Return on Investment

What to use for measuring: Google Analytics

Smart key performance indicators include return on investment (ROI). Marketing ROI is one of the most significant marketing effectiveness measures. Why? ROI reflects the actual return achieved as a result of sales and marketing efforts. It is different from other measures of activity, such as click-through rates or number of impressions, since ROI directly relates the profit or revenue made to the cost of investment in marketing.

This makes it possible for marketers to assess the effects that different campaigns and tactics have on the monetary affairs of a given firm. This means that marketing costs are earlier than marketing revenues, and a higher ROI indicates that marketing is making more money than it is spending.

7. Customer Acquisition Cost

What to use for measuring: Facebook Ads Manager, Google Ads and HubSpot

The more new customers you attract, the better for your business. You may think this until you see the customer acquisition cost (CAS) metric. Interestingly, sometimes a new customer may cost more than they can bring you in profit. If this is the case, you need to rethink your customer acquisition tactics to improve efficiency.

Generally speaking, CAS displays how much money you have to spend on marketing campaigns, mailings, and advertising to get a new customer. It is important that this value is positive for your company.

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Final thoughts

As you might have already realized, KPIs for digital marketing managers and companies generally play a very important role. Monitoring them is what helps you understand whether you are moving in the right direction now or not. It is believed that not monitoring the metrics means running a business with your eyes closed. Some key metrics can help in budgeting and understanding the marketing costs for the company.

Frequently asked questions

What is a marketing KPI?

A marketing KPI is a measurable value that reflects the effectiveness of a marketing strategy, tracking progress toward specific goals such as engagement, conversions, and revenue growth.

How do key performance indicators help?

KPIs provide clear metrics that help teams assess strategy performance, identify strengths and weaknesses, and make data-driven adjustments to achieve marketing objectives.

What are the most important KPIs for a manager?

For managers, key KPIs include customer acquisition cost (CAC), return on investment (ROI), customer lifetime value (CLV), and conversion rates, which offer insights into campaign success and financial efficiency.