Key performance indicators (KPIs) can be measured in the use of companies to monitor and evaluate strategic activities and business goals. KPIs are important to businesses because they can show you the way to more customers and sales. Also, when your budget is relatively small, that budget needs to be as efficient as possible. Tracking the right KPIs provides that.
While small business owners usually have no problem creating core performance indicators for overall sales and production, deciding how to monitor and measure digital marketing metrics can be more troublesome. As technology becomes more integrated into our lives, the importance of having KPIs for your small business’s digital market is getting bigger.
Every small business should use digital marketing KPIs. Although each company has its own digital marketing KPIs, it is possible to understand the most popular ones and start tracking and measuring them, according to your business goals.
Top 5 Digital Marketing essential performance indicators for small businesses:
1- Cost Per Click (CPC)
- Definition: the cost you pay for a single click on your ads. Usually calculated by dividing the total cost of your clicks by the total number of clicks.
- Why it matters: knowing your CPC and using this marketing metric can help you optimize your quarterly media activities, creating goals. When your CPC is high, desired return of your advertising investment is highly unlikely.
2- Cost Per Action (CPA)
- Definition: the cost you pay for its return or acquisition. A conversion or receiving a sale involves activities such as: searching for your business, filling out a lead form, downloading an e-book, selling a product.
- Why it matters: it is vital in order to calculate your cost of customer acquisition. Also, it shows you the areas you need to focus on more. For example: Your e-book has three times more CPA than your SEO efforts. Then, it is logical to focus on SEO efforts more to be more cost efficient.
3- Click Through Rate (CTR)
- Definition: the ratio of people who see your ad, incoming link, post, or search result and then click to go to your website.
- Why it matters: CTR shows you how efficient you are when trying to reach your target audience. A low CTR can indicate that you are not targeting your ideal audience or that you have the wrong content.
4- Monthly Website Traffic
- Definition: the number of users who visit your site through organic search, referral links, correct URLs, or third channels.
- Why it’s important: It is important to know the total number of people to compare it with the total number of people who buy your products or services. The data will show you the way. Let say your traffic is good but the sales numbers are not, increasing the promotions would be a better solution then trying to attract new customers.
You can collect your website data using Google Analytics. Also, you can determine which source you get your visitors from and act on that data.
5- Exit Rate and Bounce Rate
- Definitions: Bounce rate is the percentage of visitors who just arrive at your site and go away from your site without viewing any other pages of your website.
Exit rate for a page of your website is the ratio of people who left from that particular page. In bounce rate, arriving and leaving occurs on the same page, while which page a visitor arrived on is not important in exit rate.
- Why it matters: If you know which pages has more bounce rate and exit rate, you evaluate your website better. Also, you can ask more accurate questions such as whether that page has been adequately optimized, whether the target audience has been brought to the site, or why visitors do not interact with your different pages.
Apart from these 5 performance indicators, email opening rate and incoming connections also take an important place. When it comes to Facebook and Google advertising, you can track most of the KPIs from Wask’s dashboard. Also, affordable price of Wask and efficient ads it produces reduce your initial investment, therefore provides a better return of investment. Now sign up for free to Wask here and start managing your ads.