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Digital Marketing KPIs List

Digital marketing KPIs are designed to effectively evaluate your company’s overall digital marketing strategy, including brand reputation management, customer engagement, social media marketing, and website activity objectives.

Digital Marketing KPIs Reporting Dashboard

Digital Marketing – Website Activity Objectives

Digital marketing website activity objectives are designed to improve customer engagement, increase sales, increase the percentage of return visitors, reduce the bounce rate, and drive organic traffic to the site.

  • Increase the number of unique visitors – The number of unique visitors to your site is a vital metric that will help you determine the effectiveness of your digital marketing campaigns and strategies.
  • Increase the number of returning customers – It is widely accepted that one of the most demanding digital marketing objectives to meet is to convert brand visitors into returning, loyal customers. Therefore, it is vital to measure the number of return visitors to determine the number of visits it takes before they convert.

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  • Increase time spent on website metrics – The longer visitors remain on your brand’s website, the greater the chance that they will convert into loyal customers.
  • Improve the navigation path to the CTA – Website navigation path metrics are a critical measure of how well your website is performing when it comes to engaging visitors, ensuring they remain engaged, and driving them through the conversion funnel.
  • Reduce your website’s bounce/exit rate – The website bounce rate is a metric that measures the number of people who land on your website and leave immediately, without beginning the process of navigating through the site. It is crucial to reduce the bounce rate metric to improve lead and customer conversion rates.
  • Improve lead generation rate – The lead generation metric shows what percentage of website visitors are engaging with the site’s content. This figure will tell you if your CTA is successful or not.

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Digital Marketing – Sales and Revenue Objectives

The digital marketing sales and revenue objectives are designed to increase sales figures and overall revenue as a direct and indirect consequence of the brand’s digital marketing strategy.

  • Increase revenue per customer – Calculating how much money is generated per customer will help identify your brand’s most lucrative market segments.
  • Improve total revenue per customer metrics – Improve the effectiveness of your digital marketing campaign by tracking and improving revenue per customer.

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  • Increase total sales numbers – Measuring the total number of sales, or the total number of purchases, per digital marketing campaign shows how effective the campaign is.
  • Improve conversion rate – Improved conversion rates translate directly and indirectly into profitable revenue. Therefore, it is vital to increase the number of visitors to your website that convert into returning customers. The higher the conversion rate, the greater the marketing spend ROI.
  • Improve revenue per marketing channel – It is essential to measure the performance of each marketing channel utilized to ensure the improved metrics and success rates of subsequent campaigns.

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Digital Marketing – Profitability Objectives

A robust digital marketing strategy must begin with clear, actionable, and achievable goals. And, the primary aim of the successful strategy is to drive profitability objectives. A company cannot exist if it is not profitable.

  • Reduce cost per lead metrics – Because it costs money to generate new business, it is essential to measure the cost per lead metric. This is to track the value of your marketing spend and the ROI per lead.
  • Improve profit per customer – Customer profitability metrics are calculated by subtracting the customer acquisition costs from customer-generated revenue. This is an essential number to measure to reduce costs and improve profits per customer.

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  • Improve Return on Investment metrics – Return on Investment is the ratio between the net profit and the cost of the investment. The digital marketing strategy ROI is the ratio between the net profit gained from the strategy and the marketing spend for the strategy. Improved ROI translates into increased income versus decreased marketing spend.

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Digital Marketing – Customer Engagement Objectives

Customer engagement is the key to profitable digital marketing in the Engagement Economy. Therefore, it is vital to engage with consumers in a meaningful way to determine what they expect from the brand.

  • Improve customer lifetime value – A loyal customer will yield accumulative value over time (months and years). Therefore, measuring a customer’s lifetime value will enable you to identify what that value is, as well as how to increase it.
  • Improve customer retention rate – The customer retention rate indicates the percentage of customers the brand has retained over time. The retention rate is juxtaposed to the percentage of customers lost over the same period. (churn rate) A high customer retention rate is critical as it links sales figures and overall profit.

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  • Improve number of social media likes and shares – A substantial part of your brand’s digital marketing strategy should include frequent posts on social media. Likes and shares are your target audience’s way of showing they’re paying attention. This is a useful customer engagement metric. The more likes and shares, the more engaged your customers are.
  • Increase social media followers – Social media engagement affects brand awareness, sales, and search engine rankings due to the positive signals it sends. Therefore, it is becoming increasingly important to improve social media followers.
  • Improve social engagement metrics – Customer engagement is an important part of the successful digital marketing strategy. Although likes and shares are important, engaging with your brand by commenting on stories and participating in online discussions is more valuable. In the digital age, consumers approve of a brand when the brand engages with them.

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Digital Marketing – Brand Reputation Objectives

Brand reputation management is a fundamental aspect of growing and maintaining a business. A positive brand reputation establishes loyalty and improves customer confidence in your brand’s products: driving sales, growth, and profitability.

  • Increase brand awareness – In order to convert your brand’s target audience into returning customers, they have to know that you are open for business. This is a vital metric to measure because it shows your brand’s market penetration levels.
  • Improve brand market share metrics – The higher your brand’s market share, or the greater the market penetration, the more profitable it will be. Therefore, keeping track of this number is the first step to increasing your brand’s market share.

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  • Increase search engine rankings – Brand reputation plays a fundamental role in determining where your brand ranks on search engines like Google. Therefore, it is essential to track this metric to improve its ranking.
  • Increase positive comments and reduce negative comments – Tracking this metric is essential to monitor brand reputation. Good comments foster a good impression of your company and brand. Negative comments do the opposite. Therefore, it is vital to ensure that the number of positive comments far outweigh the negative ones.
  • Increase the number of media mentions – In the Engagement Economy, consumers have the most say over a brand’s performance. Media mentions by top sites also add value to the brand’s reputation. Tracking the number of online brand mentions to monitor what the press is saying about you and how often your brand is mentioned.

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SaaS Objectives

The Software as a Service (SaaS) model comprises software developed and hosted by a company with monthly user licenses offered to customers needing to utilize the software’s functionality. Measuring the SaaS company’s ability to increase sales and drive business growth is a critical part of ensuring the SaaS company’s success.

  • Improve the monthly unique visitors metric – The monthly unique visitors metric counts the number of unique visitors to your website in a given period like a month. Note: If a visitor revisits your site more than once using the same device and browser, they will only be counted once.
  • Improve the number of signups – The number of signups translates into the number of new customers that the SaaS company acquires within a given period. This metric is the most important because the SaaS business model functions by driving the number of signups up as high as possible every month.

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  • Increase the number of Product-Qualified Leads (PQLs) – The PQLs are one of the most critical metrics for the SaaS company to track. A PQL is an individual or company that has experienced the software’s value through the free trial model. PQLs are more likely to convert into customers than any other lead because of their customer experience.
  • Improve the Qualified Lead Velocity Rate (LVR) – The Qualified Lead Velocity Rate (LVR) is the growth percentage of qualified leads from month to month. It measures the number of leads in the pipeline that are converted to customers. To consistently grow your customer base, there must be a regular number of PQLs every month.
  • Improve the organic versus paid traffic ROI – Organic traffic metrics include visitors who arrive from an organic or non-paid Internet source. Organic traffic numbers do not include visitors who have reached the SaaS website via paid traffic sources like pay-per-click (PPC) ads.
  • Improve the viral coefficient – The viral coefficient is defined as the number of new customers the average existing customer brings in. When your current clients help you acquire new customers through “word of mouth,” the customer growth metrics are exponential. This metric is not the number of new referrals; rather, referrals converted into customers.
  • Improve the Average Revenue Per Account (ARPA) – The average revenue per account (ARPA) is a profitability metric that measures the company’s revenue generated per customer account. It is mostly used by companies that run a subscription-based business like a SaaS-based business. And it shows which products or services are profitable and which generate the least revenue.
  • Improve the conversion rate to customer – The conversion to customer rate is the number of people who converted from a website visitor into a returning customer. This rate is calculated by dividing the number of conversions by the total number of visitors. The higher your conversion rate, the lower your company’s cost of sales is.
  • Improve the Customer Acquisition Cost (CAC) – The Customer Acquisition Cost (CAC) is the total cost of sales and marketing efforts needed to acquire a customer. It is an essential metric to measure because the SaaS model requires that the CAC be as low as possible to increase profitability ratings.
  • Improve the Monthly Recurring Revenue (MRR) – The Monthly Recurring Revenue (MRR) is the lifeblood of the SaaS business model. The SaaS business cannot exist without MRR. This metric is vital to track as a single figure, irrespective of how many pricing plans and billing cycles you have. The higher the MRR, the greater the company’s income.
  • Improve the number of support tickets created – A part of running a SaaS business is the inevitability of the fact that you will receive a number of customer complaints, questions, and suggestions. The number and type of support tickets created to demonstrate whether or not there are challenges that must be attended to.
  • Improve the Average First Response Time (ART) – The Average First Response Time (ART) is the average time taken for a customer service agent to respond to the customer’s initial message or support ticket. The ART is calculated by adding all of the first response times and dividing the sum by the total number of resolved support tickets.
  • Improve the Average Resolution Time – Customer support issues or tickets must be resolved quickly. While it’s essential to respond to users immediately, it is imperative to resolve customer issues as soon as possible. The average resolution time is the average amount of time it takes your support team to resolve or close a ticket completely.
  • Improve the Net Promoter Score (NPS) – The Net Promoter Score (NPS) measures how loyal customers are to your business. A high NPS score is considered the gold standard of customer service. This customer perception metric is measured by a single question survey asking how likely customers will recommend your business to their social circle.
  • Improve the number of active users – The number of active users translates into the number of customers that are actively using your product. This metric is a benchmark to determine the health of a SaaS company’s customer base. The higher this metric the stronger the signs that your SaaS company is a healthy-functioning business.
  • Improve the customer retention rate – The customer retention rate metric measures the number of clients who have consistently used your product for a long time or over a predefined period. The metric shows your product’s health over time. Customers must use your product; otherwise, you will lose customers instead of increasing customer retention rates.
  • Improve the Customer Lifetime Value (LTV) – The Customer Lifetime Value (LTV) measurement is a prediction of the total worth of a customer to the business over the entire length of your relationship with the customer. This is an important metric to keep track of as it costs less to retain customers than to acquire new customers.
  • Improve the churn rate – The customer churn rate is the percentage of customers who navigate away from the company’s business offerings during a given period. A high churn rate shows customer dissatisfaction or that there are better offers from the competition. The higher the churn, the cost of customer acquisitions increases exponentially.

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The rationale behind the need for digital marketing KPIs has arisen out of the fact that digital marketing has emerged as the core marketing methodology for almost every business organization, irrespective of size and number of employees. Consequently, there is a need to measure digital marketing efficiencies. Finally, they are intended to measure profitability, sales, and revenue metrics in relation to digital media marketing campaigns and strategies.

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