Many businesses have made the intelligent move to create an online presence for their brand. Strictly relying on traditional media for advertising is simply not enough anymore.
The internet gives you a broader reach. However, it can be difficult to measure the success of your ad campaigns online if you don’t know where to look. This is where KPIs come in.
What Does KPI Mean?
KPI stands for Key Performance Indicator. KPIs are measurements that show how successful or unsuccessful your business’s online marketing has been. They provide you with quantitative data so you can make informed decisions about where to spend your budget.
If you have a specific goal for your business, you could track your progress towards that goal by monitoring a specific KPI related to it. For example, if you want to get more conversions, you could look at the ratio of total sales to total leads.
Essentially, KPIs are data you can use to create strategies to increase profitability. Here are some examples of KPIs you can start monitoring for your own online business.
This KPI measures how many people visit your website within a certain amount of time. It also has subcategories that measure how long a visitor stays on your site, how many unique visits you receive, how long the average visitor stays, and the like.
Your website traffic will show you how popular your website is. High traffic means your ads are working to draw in visitors. Long visits indicate that your visitors are engaged by your content and are therefore more likely to spend. More unique visits mean you are drawing in more new potential customers and expanding your customer base.
Traffic to Lead Ratio
Just because you have a lot of website traffic does not mean that you automatically have a similar amount of leads. Without leads, you won’t get a lot of sales. If you’re generating a lot of website traffic, but your visitors are failing to convert to leads, that shows you that your advertising is working, but something in your website is letting your customers down. This could be many things like the price of your products not meeting their expectations, the website itself being difficult to navigate, or even the aesthetics of it being off-putting.
Cost Per Click
No one is going to put up your ads for free. There are many popular websites that offer a pay-per-click marketing campaign. Pay-per-click means what it says on the tin; rather than paying a website a sum of money to run your ads, you pay them a certain amount every time a person clicks on your ad. The sum you pay per click depends on how much you wish to pay. You and your competitors bid for ad placements on popular websites like Facebook, Instagram, or Google. The amount you bid is the Cost Per Click or CPC.
For this KPI, you’ll want a high click rate to low CPC ratio. What this means is you’re paying small amounts of money per click for websites to host your ads, but you’re receiving a lot of website traffic via those ads.
Even if you are a brick-and-mortar business, having a strong online presence is important to stay competitive in today’s market. KPIs are a lens through which you can gauge the effectiveness of your online campaign.
Need help with digital marketing for a small business? Reach out to Vaxa Web today! We’re a full-service digital agency in West London that works closely with our clients to achieve their goals.