How to measure your Key Performance Indicators?

How would you know if your marketing efforts are effective or not if you aren’t tracking them? That’s when KPIs, or Key Performance Indicators, come in handy! KPIs allow you to track the indicators that are most important to your company so that you may continue to grow.

A key performance indicator (KPI) is a metric or a quantitative measure that you may use to assess the performance of your company. Digital marketing KPIs are measures that are directly linked to your digital marketing plan. Whether it’s brand awareness, lead generation, sales growth, or SEO. They contain data like your online sales revenue, website traffic, SERP, conversion rates, page conversion, marketing qualified leads (MQL), engagement rate, total revenue. Basically, anything quantifiable and actionable is a part of your digital marketing plans.

Your Key Performance Indicators can originate from social media platforms like Linkedin, Facebook, and Instagram, as well as pay-per-click (PPC) solutions like Google Ads or Bing Ads. Any lead conversion tool, marketing activity, or your sales personnel are all possibilities.

Why Do You Need to Track Your Key Performance Indicators?

KPIs and Metrics: How to Measure Digital Marketing Success | SEO

To have a clear view of what’s working and what isn’t, you’ll need to track your KPIs. You’ll never know where to invest if you make a profit at the end of the day but have no understanding of where it came from. Or what component of your marketing plan was responsible. For example, a single source of website traffic may be responsible for nearly all of your qualifying leads and sales. While you might be wasting money on marketing channels that aren’t generating any.

 

Thanks to multiple systems such as Google Analytics and Google Ads, almost anything can now be tracked. It’s simple to observe where your consumers come from, your cost per lead, how much it costs to acquire a customer, which digital marketing strategies worked best, and so on. With this knowledge, you may eliminate the components of your plan that aren’t profitable and concentrate on improving the ones that are.

What KPIs should you track?

It’s not a “one-size-fits-all” decision when it comes to digital marketing KPIs. The greatest KPIs to track for one organisation aren’t always the same for another.

To determine the ideal KPIs for your company, start with your objectives and move backwards. There’s no need to track email marketing KPIs if your lead follow-up is solely done over the phone or in person.

It is of utmost importance that your KPIs meet basic criteria, commonly abbreviated as SMART, of being-

  • Specific
  • Measurable
  • Acceptable
  • Realistic
  • Time-bound

How to Create Smart Goals and KPIs | By All KPIs | All KPIs

To put it another way, the KPI must deliver a particular result that digital marketers can assess. One that can be identified when achieved. One that is related to your goals and that can be assigned a date or timeframe.

Some of the important Digital Marketing KPIs

The exact combination of Key Performance Indicators you track depends depend on your organisation and the channels you’re targeting with your digital marketing campaigns. Most businesses will also benefit from having some broad marketing measurements and KPIs. Some of general marketing KPIs include –

Rate of Conversion

What percentage of visitors convert to leads and leads to customers is known as the conversion rate. If you want to measure each channel independently, this is a generic marketing KPI that can also apply to any of the other categories. You might also keep track of how many leads or conversions you’ve received.

Cost per lead

Everything your team does to generate new leads is an investment. Advertising, web design, and social media management all consume a significant portion of your company’s money. To understand how much it costs to attract a potential consumer, add the cost per lead KPI to your dashboard.

A lower cost per lead could indicate a better customer experience or greater brand awareness. The contrary result shows that you should review your marketing plan and concentrate on channels that are more profitable.

The cost-per-lead is also an important sales KPI because it lets you measure the performance of your sales force.

Customer Lifetime Value (CLV)

A customer’s lifetime value is the amount of money an average consumer earns over time. Depending on your average retention rate and back-end product or service offerings, this could take days, weeks, months, or years.

Customer Acquisition Cost

The acquisition cost is the amount of money required to acquire a consumer. Advertising, sales calls or visits, and anything else that goes into your prospecting and conversion process are all examples of this.

Return on Investment (ROI)

The ROI is a result of the last two KPIs. When you compare your client acquisition cost to revenue earned, it informs you how much profit you make.

Retention Rate

This marketing KPI depicts the number of customers that use your product for an extended period of time and purchase it again. You can see how engaged your consumers are by keeping track of their retention rate.

Here’s a basic formula to remember: ((CE-CN)/CS) x 100 = Retention Rate

CE stands for the total number of customers at the end of a term
CN stands for the number of new customers acquired over a given time period
CS stands for the number of customers at the beginning of a term

What KPIs to not track?

The ease with which digital marketing KPIs such as website traffic, e-commerce analytics, churn, and organic search can be tracked can be a double-edged sword. It makes it simple to measure key metrics, but it also makes it simple to track things that aren’t important, wasting time and attention.

Consider whether the data will provide you with any relevant insights on ways to improve your bottom line when determining which KPIs to track. It’s probably a vanity measure if the metric isn’t something you can act on or influence, hence it’s not worth tracking.

For example, you might be tempted to track vanity metrics like Facebook likes or Twitter followers, but why measure them if you’re not currently running a social media campaign to increase likes or followers? It’s not a useful metric.

Conclusion

Tracking KPIs is extremely important. This is beneficial if you already have particular objectives in mind, but it might be extremely daunting if you don’t know which data sets to examine. Therefore, it is critical is to choose your marketing KPIs properly. You can determine the success of your plans and continue to improve by focusing on only the most important indicators in terms of your business.

Contact us at Shaktiki today to book a free consultation call.

Why is Collaborative Marketing up and coming?

Collaborative marketing is a means to pool the resources of like-minded organisations in order to achieve similar growth goals. It is one of today’s marketers favourite strategies for a variety of reasons. A huge return on investment made both monetarily and in terms of the efforts allotted definitely tops the chart. When collaborating one of the basics things to be mindful of is the degree of like-mindedness of the business you choose to collaborate with.

Factually speaking, a recent report found that businesses that collaborated on joint initiatives were $430,000 better off than those who chose not to. And that the degree of openness to collaborations was directly proportional to growth in revenues.

Talking about the benefits of collaborative marketing, it helps you boost your reach, improve brand awareness and strengthen your brand image. Depending upon the type of tactic you choose to go with, you might also end up cutting costs and benefit from combined expertise.

How does collaborative marketing with other businesses work?

A great venture requires great planning. Plan and define your goals before you move forward with a particular partnership. Get everything in an agreement and design a joint social media calendar to avoid potential misunderstandings.

Effectively identifying a business you choose to collaborate with lays the foundation for a successful collaboration. When collaborating, your main aim is to increase brand awareness. Therefore, choose a business that echoes your aim and offers a complimentary service or product. Do not collaborate with your direct competitors.

Collaborative Marketing

After you are done selecting, it is time to reach out. When you are looking to boost your reach, make sure your collaboration pitch leverages existing statistics of your reach and the degree of your existing brand awareness. On the other hand, if you want to work on a collective ad campaign, propose a potential budget you are looking for from their end.  This is necessary for them to stay on the same page as you.

Do not reveal too little or too much. Your pitch is your way to foster a potential collaboration that will require both trust and loyalty from both parties’ ends.

What does collaborative marketing entail?

These collaborations work in many ways. The two most common standards of collaboration are discussed as follows. You can either collaborate with businesses to promote your brand or service (which should complement theirs) on their social media. Or, you propose to pool resources and launch a joint product or a collective ad campaign, an offer or even a pop-up shop.

Some strategies sprouted from the aforementioned standards are discussed in length below.

Another type of collaboration that might come to your mind is that with influencers. However, those collaborations come mainly under influencer marketing. Influencer marketing involves entering a paid partnership with an influencer.  In return, the influencer markets your product or service by talking about it on their social media handles. Read more about influencer marketing here.

Common collaborative marketing strategies

Co-branding or Partnership Marketing

It refers to pooling resources and splitting costs to come up with a joint campaign. Now the campaign could essentially be an ad, an offer, or a pop-up shop. Collaboration can also have two brands talk about each other on their social media via content marketing.

An example of partnership marketing is Spotify and Starbuck’s music ecosystem. Under the initiative, Starbucks employees got a Spotify premium subscription, via which they can curate playlists to play throughout the day in the shop. Read more about the co-branding marketing genius here.

Starbucks Spotify

Brand partnerships

As suggested by the term, it involves long-term partnerships with brands to foster anything from an ad to a whole new product. It helps brands meet their goals collectively. An example of a partnership that required curation of a product is Burger King’s with the Impossible Burger. They made history by becoming one of the first national fast-food brands to release a meatless burger.

Whopper

Another example where a long-term brand partnership that did not require birthing a new product is McDonald’s and Coca-Cola’s. The burger-selling giant entered into a partnership with a soft drink giant, agreeing to exclusively sell Coke products at their outlets.

Social media collaborations

These types of collaborations basically entitle brands to collaborate with other brands with the purpose of promoting each other on their handles. This is done via leveraging content marketing to give product shoutouts to each other. Publishing their interview or releasing a podcast episode.

social media channelsOur favourite means to achieve high returns is launching a giveaway. They are quite easy to set up. You collaborate with a brand to come up with specific terms and offer products in an exclusive giveaway for both your audiences. By offering the best of both worlds at minimal costs, you end up getting rewarded in terms of boosted reach. As a marketer, it is important to market the giveaway in turn by using social media ads.

Joint ad campaigns

Pooling costs to launch an ad campaign with a partner is also a way to collaborate. You find a business that offers a complementary service and launches a campaign together. The campaign, thus launched, will have both your marketing expertise at work, which is a win-win. Facebook Ads are an effective tool to realise your marketing goals.

Facebook Ads

You can also choose to come up with a deal offer for your customers. Imagine you are a business that sells organic coffee. Now, you can collaborate with a brand that sells ice cream. A joint ad campaign will talk about how great a combination both your products make and offer a discount of say 20% when bought together.

Both the businesses end up acquiring a huge chunk of the other’s customer base without spending a bomb.

Conclusion

Collaborations with other businesses is a two-way street, hence it is important to stay faithful till the terms of the collaboration are met. You need to be aware of your expectations as well as strive to accommodate and address your partner’s too. Also, do not skip on re-evaluating your strategy with each collaboration. Do not give up on the strategy as a whole in case a collaboration does not end up working well. 

Collaborations are a great and upcoming marketing strategy given the fact that almost every pair of businesses complementing each other’s work. Intrigued? Well, we don’t see why you wouldn’t be. Happy collaborating! We at Shaktiki are here to help you with anything and everything marketing. Contact us here.