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 PPC Advertising so important?

If you have ever come across an ad appearing alongside search results on Google and other engines, chances are you are familiar with pay per click (PPC) advertising. PPC Advertising is a model of online advertising under which an advertiser pays for every click on their ads. Usually, commercial searches lead a consumer to such an ad. Examples could be looking up a nearby grocery store to searching for a high-end gadget.

Both marketers and publications are said to benefit from the PPC approach. The strategy is beneficial to advertisers because it allows them to advertise products or services to a specific audience that is actively looking for similar content or products.

The pay-per-click model is a major source of revenue for publications. Consider Google and Facebook, both of which offer free services to their users. Using online advertising, particularly the PPC model, internet businesses can monetise such free offerings.

Types of PPC Ads

PPC Ads are a branch of Search Engine Marketing. These ads most usually appear on search engines like Google and Bing. There are three main kinds of PPC Ads.

1. Text Ads

Google Expands Your Search Ads AGAIN! What You Need to Know | WordStreamThey are composed of texts from the advertiser and usually appear on search engines.

A particular text PPC reaches you via the means of keywords common between your search and the text.

A sample has been attached for your reference.

2. Display Ads

As the name suggests, display ads are composed of images or motion graphics. These ads usually reach a user via a website on the internet. Most websites have a space reserved to be sold to advertisers to put up display ads.

Advertisers are required to adhere to certain content and image size specifications issued by the website they post their ad to.

For example –

What Is Display Advertising? (The Definitive Display Ads Guide)

3. Shopping Ads

These ads are inclusive of an image of a product, its price and various details like colour, size, dimensions etc. They get displayed on a search engine or a shopping engine when certain keywords by the users match the words in the ad.

For example –

Did you know you can advertise on Google Shopping Ads for free?

How does a PPC advertising model work?

Keywords lay the foundation of the PPC model. These advertisements end up getting displayed in search engines only when someone searches for a keyword relating to the offered product or service. If you are looking to use pay-per-click advertising models, you must thoroughly research and analyse the most relevant keywords. Investing in suitable keywords can result in more clicks and, ultimately, better revenues.

However, researching keywords is not all. Instead, Google and other major search engines employ a fully automated method known as the Ad Auction to decide the relevancy and legitimacy of ads that appear on their SERPs.

An Ad Auction is a bidding system. This means that marketers must bid on the keywords for which they want their ads to be “triggered,” or displayed. Now if you are a business selling lipsticks, your users might enter keywords like makeup or cosmetics posts which the engine will run its algorithm based upon the Auction and will thus, display the most relevant ads.

It’s worth noting that the winner of an auction is usually chosen by the “rank” in which the money is offered. The ranking takes into account the quantity of money being paid as well as the quality of the content being offered by the advertiser. As a result, the content’s quality and relevance are just as important as the bid. Using statistics goes a very long way in boosting your ad’s appearance. Hence, the importance of content marketing is unprecedented.

How to make the best of PPC Ads?

Because you must pay for each ad click, it’s critical that you only bid on keywords that are relevant to your organisation. We do not want to spend more than the returns we can expect from these ads. Look out for the following to ensure great ROIs.

1. Using a Keyword Tool

The internet is home to many tools that offer insights into the keywords that will surely work for you. Some of these include – WordStream, Keyword Tool, Found etc.

These tools also assist you in looking out for tempting negative keywords. Negative keywords, if used, will prevent your ad from displaying. Make a separate list, if needed, for both negative keywords and those keywords that perform poorly.

2. Keeping track of your ad’s performance

Conversions can be tracked on all popular platforms, such as Google Ads and Bing Ads. They also allow you to monitor the ROI of not only the total account but also specific ad groups and keywords at a granular level.

This means you may use data and insights to improve the efficiency and efficacy of a campaign over time, hence increasing the channel’s ROI.

3. Maintaining a PPC Budget Sheet

You need to establish the amount of money you are willing to invest in an ad. Your monthly budget is 30/31 times your daily budget. However, maintain a tracking sheet and input the returns realised gradually as you invest more money.

4. Knowing your competitors

Doing a Google search for the phrases you’re contemplating on targeting is the simplest approach to find out who your competitors are. Additionally, you can target up to eight keyword phrases if you scroll to the bottom of the search results page. Checking all of them for commercial intent will boost your ad conversion rate.

To assist you with the further nitty-gritty of analysing your competitors, there are many tools that provide the service. Some of them include – KeywordCompetitor, SpyFu, SE Ranking etc.

5. Maintaining a comprehensive ad schedule

It is a well-known fact that visitors to your website are more likely to convert at various times of the day and not at all points.

Ad scheduling allows you to change bids (or completely cease bidding) based on the time of day and establish an ad schedule in advance to avoid wasting money on non-converting clicks.

6. Paying attention to your landing page

A landing page is a follow up to what your ad talked about. Your landing page allows you to make a trade, a special offer, a piece of information, or a bargain. Optimising a focused landing page is critical to the success of your PPC as it should be able to sell the product or service you’re promoting successfully. Make sure it is easy to navigate without distracting or intimidating the customer. It should necessarily feature a good call to action (CTA) and a thank you note.

Conclusion

PPC can and should be a profitable marketing channel for any and every organisation. It comes with a long list of advantages that other platforms lack. It is also pretty simple to set up on the most prominent platforms.

Knowing the ABCs of PPC advertising is essential before diving into platforms like Google Ads or Bing Ads. Take the time to learn how to properly launch and optimise a campaign, as well as how to create goals and track your results. You’ll have more visitors and conversions in no time!

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

Why is Search Engine Marketing so effective?

The act and experience of shopping are not the same anymore. There has been a major shift in the way purchases are made today. Bricks and mortar stores have lost their significance. This is because of the increasing popularity and excellent availability of e-commerce.

With the advent of the coronavirus pandemic, online shopping has witnessed a major boost all over the world. Billions of people shop online today. However, this digital revolution is accompanied by more online searches.

What do you do before buying any product or service?

The most common practice today is to search the same online, irrespective of where you purchase it from. According to Think with Google, “53% of shoppers say they always do research before they buy to ensure they are making the best possible choice.” The number ‘53%’ is so large. However, other sources claim it to be around 80% as well. Though the number can vary for different geographical locations, one can’t ignore a simple fact:

Most people today do an online search before making any purchase. 

With such massive changes in the way people shop, there also needs to be other upgrades to the entire shopping cycle. ‘Marketers go where customers go’ is a simple marketing lesson. So if people have turned to e-commerce and online search, then this is the most beneficial place for a marketer. This logic forms the basis of a popular marketing technique – SEM or Search Engine Marketing.

What is Search Engine Marketing?

This refers to a practice in marketing where a business uses paid advertisements to appear on search engine result pages or SERPs. The technique begins with marketers bidding on keywords that users might enter while searching for products or services on Google and Bing. Consequently, this provides the advertiser with a chance for their ads to pop up with the search results.

These ads are also known as pay-per-click ads and they can be in multiple formats. First, there are product listing ads that are more visual. Others that are small are usually text-based ads. Additionally, there are product-based ads that provide necessary information like price or reviews to the customers.

 

 

 

What makes Search Engine Marketing so effective?

There are many marketing techniques that can be easily incorporated into a company’s marketing strategy. However, search engine marketing is extremely effective.

This is possible because the marketing technique provides the opportunity to advertisers to put their ad exactly where customers search for it. Enthusiast customers who are in search of a product or service search about the same online. This is where search engine marketing works and presents your advertisements exactly when they are planning of making the purchase.

The timing and the rationale behind search engine marketing are its major strength. Hence, it is an effective way to grow your business.

How is SEM different from SEO, Search Marketing, and PPC Marketing?

The terms SEO and SEM might seem confusing but there’s a major difference between the two. The latter is a paid advertising tactic whereas the other is not. SEO or Search Engine Optimization improves organic visibility in search. Additionally, they do not have an “Ad” designation on their results because they are not paid.

On the other hand, Search Marketing refers to any technique used to increase a brand’s visibility in search. So, this can include Search Engine Optimization (SEO) or Search Engine Marketing, or even both.

PPC Marketing refers to Pay Per Click Marketing. This is a strategy where a brand creates a digital ad and they are charged for it every time a user clicks on it.

Even though PPC ads in the search results are considered SEM, all PPC Ads are not SEM. This is possible because PPC also uses channels other than a search like Facebook Ads. It also includes Google display ads that charge brands when a user clicks on a banner ad on a website. Hence, the term PPC refers to an SEM-based strategy but it can also be used for display ads or social marketing.

How does Search Engine Marketing work?

The first step after making the decision to invest in Search Engine Marketing is to enter an ad auction. Let’s take the example of Google Ads. This means every Googe Ad visible on the web goes through an ad auction.

The first step to enter this auction is to identify the keywords you want to bid on. Additionally, you will have to clarify how much you want to pay for a click on these keywords. When Google finds out the keyword you bid are included in a user’s search query, then you are entered into the ad auction. However, not every ad will be visible on every search linked to the keyword.

This is because some keywords do not have much commercial motive that will allow them to include ads on the page. For example, search queries like “what is business” do not show ads.

Besides this, even a keyword suitable for an ad might not always win the bidding. This is because an ad auction also considers two other factors. First is your maximum bid. The other being the quality score of your ad.

Quality Score refers to the estimated quality of your ads along with keywords and landing pages. This score which is given on a scale of 1-10 is displayed in the keyword Status column of your Google Ads account. The factors included in your Quality Score can be:

  • How likely a user is to click on your Ad
  • The landing page experience
    Relevance of your Ad to a use

This means companies should work on improving their quality scores to leverage the benefits of search engine marketing.

Summing Up

Search Engine Marketing has been one of the most trending marketing tactics of recent times. The ongoing digital revolution has been motivated by the pandemic. With e-commerce becoming extremely common and popular, online searches have followed them. Based on this logic, Search Engine Marketing helps businesses to grow.

If you are a business looking to grow, we at Shaktiki can help you with marketing solutions including SEM.

Get in touch with us now.