In this digitally evolving industry what brands today find difficult is to stay relevant. Ranking as one of the tops among your competitors is surely a daunting task but to be consistent in the leading position is an uphill battle.
What is KPI?
To track your campaign performance on digital platforms Digital Marketing KPIs are tools you use to figure out how much are they fulfilling your marketing objectives. It is very important to ideate campaigns that fetch you maximum engagement. According to Forbes, at least 75% of your campaigns should produce a 1-5% engagement rate. If you are scouting for the best digital marketing company in Kolkata to multiply your profits through lucrative campaigns then we are your cherry-pick!
KPIs focus on increasing revenue, gaining website traffic, and increasing brand awareness. It gives a clear picture of how the campaign is doing on platforms and how much the marketing strategy has impacted the business. It is crucial to upkeep with trends and what is driving traffic, action, and engagement.
KPI metrics give you a concurrent view of where your campaign stands on digital platforms and lays out an elucidated track of your digital marketing analytics. Digital marketing teams KPI tools to achieve desired outputs and make form better strategies by analyzing the progress and insights of their marketing strategy. KPIs make your marketing performance quantifiable through various measuring tools.
Now let’s take a look into the most important KPIs in Digital Marketing.
1. COST PER LEAD(CPL)
CPL or Cost Per Lead enables you to generate new leads. It provides data to determine whether the business is procuring new clients cost-efficiently. It is when the company pays a preordained amount of money for each lead. CPC is calculated by dividing the total investment of the marketing campaign by the total number of new leads. It is generally used by direct response marketers for customer acquisition. It is an effective pricing model to analyze through which you can dish out your budget wisely.
2. COST PER CLICK(CPC)
Cost Per Click is the analytics of how much amount you pay for every click in your PPC (Pay Per Click) campaign. CPC is basically paid advertisement when the company has to pay a certain amount when users click on their ads. You can obtain your CPC by dividing your total spend on the campaign by the total number of clicks. To figure out the results of PPC you have to measure your CPC first. When your CPC starts to drop and clicks increase that is the sign of a successful campaign.
3. CONVERSION THROUGH RATE (CTR)
CTR is one of the most commonly tracked KPIs, it gives you a clear-cut picture of how your content is generating traffic and driving action. If you are not satisfied with your CTR this tool helps you comprehend how you can work and improve on your strategy to achieve results. You get accurate data on how many leads were converted into consumers. CTR is measured by dividing the number of clicks by the number of impressions(the number of times your ad appears). A higher CTR is necessary to achieve better results in PPC. If the number of clicks is increasing in comparison to the number of impressions that signifies that your marketing strategy is effective.
4. CUSTOMER ACQUISITION COST (CAC)
CAC calculates the cost involved in turning prospects into customers, these stats determine the total spend for acquiring consumers. Measuring CAC is essential for both companies and investors. It gives clarity on the effectiveness of your customer acquisition strategy. With the help of CAC, you can also figure out what strategies are benefitting the business by increasing conversions. You can measure your CAC by dividing the total marketing spend by the number of acquired consumers. It is vital to monitor your CAC to make sure your business is on the right track.
5. MARKETING ROI
ROI or Return on Investment determines the revenue generated by your marketing campaign. ROI stats help you monitor your lead generation, improved engagement, and cost-benefit. It is necessary to track the ROI of each of your marketing activities. ROI gauges the proficiency of your investment in the marketing campaign. A higher ROI is a sign of a good marketing campaign. You can measure your return on investment by dividing the profits of your investment by the cost of the investment and then multiplying it by 100.
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