Knowing KPIs in Digital Marketing

08 February 2022

Key Performance Indicators (KPIs) are measuring tools to see if aspects of your business performance and marketing activities are working as intended. KPIs can be tied to your entire business, from employee performance to sales.

The result indicator can be different depending on how you want to show it. This can be seen when you present this calculation. When dealing with directors, you will focus on sales revenue. With social media executives, however, you'll focus on social engagement, or the cost per thousand impressions (CPM) of your advertising budget.

There are several terms in digital marketing that often appear in KPIs that you need to know:

1. Conversion rate                                     

Conversion rate is the percentage of visitors who take an action so they can become your customers. By directing visitors to what they are looking for by optimizing messaging, content and page layout, you can increase your website's conversion rate.

2. A/B Testing

To find out what marketing methods are suitable for use, you can do A/B testing. This is an experiment in which two different versions of a campaign or content are tested on an audience. Then, see which one works better.

A/B testing can be used for any type of business, be it B2C, B2B, or whether you offer a product or service, you can use A/B testing to learn more about your audience.

3. Organic traffic

Having an advertising budget is a great thing, but not all companies have this. Especially for new businessmen. They usually don't have an advertising budget. The traffic that comes to their website is the result of organic searches, not paid advertising. Although the number of visits is usually small, this is not necessarily a bad thing. Leverage referrals, content, marketing and SEO to increase traffic.

4. SEO (Search Engine Optimization)

SEO (search engine optimization) helps visitors to find what they are looking for. SEO can increase your website traffic, so search engines are expected to choose to display your content in search results. For that, in addition to interesting content, SEO must pay attention to URLs, title tags, headings, and links.

5. Bounce rate

Bounce rate is the percentage of visits to the website, without doing anything. This means that visitors leave immediately after seeing only one page on the website. This can happen because visitors feel the content is not interesting or there are too many ads.

To deal with this problem, you can improve your marketing campaigns, update website content, and reduce advertising. Then, choose advertising words that are effective and correct. Because, visitors will feel frustrated when looking for goods or services, but when looking for them on the internet they are referred to websites that have nothing to do with what they are looking for.

6. Engagement rate

Engagement rate is a tool for measuring content performance on social media to find out the high or low interaction of followers on content, such as likes, shares, and comments. Engagement rate is calculated by taking the total number of interactions per post divided by the number of followers.

Engagement rate is very important to see the performance and what type of content you publish. The higher the engagement rate, the higher the content liked by your followers.

In general, KPIs are usually applied to the team in question. Not only that, you also need a metric that can be monitored in real terms as an indicator of the success of the business being undertaken. Therefore, this assessment indicator is very important to be understood by marketing activists, both as employees and business people.

Key Performance Indicators (KPIs) are measuring tools to see if aspects of your business performance and marketing activities are working as intended. KPIs can be tied to your entire business, from employee performance to sales.

The result indicator can be different depending on how you want to show it. This can be seen when you present this calculation. When dealing with directors, you will focus on sales revenue. With social media executives, however, you'll focus on social engagement, or the cost per thousand impressions (CPM) of your advertising budget.

There are several terms in digital marketing that often appear in KPIs that you need to know:

1. Conversion rate                                     

Conversion rate is the percentage of visitors who take an action so they can become your customers. By directing visitors to what they are looking for by optimizing messaging, content and page layout, you can increase your website's conversion rate.

2. A/B Testing

To find out what marketing methods are suitable for use, you can do A/B testing. This is an experiment in which two different versions of a campaign or content are tested on an audience. Then, see which one works better.

A/B testing can be used for any type of business, be it B2C, B2B, or whether you offer a product or service, you can use A/B testing to learn more about your audience.

3. Organic traffic

Having an advertising budget is a great thing, but not all companies have this. Especially for new businessmen. They usually don't have an advertising budget. The traffic that comes to their website is the result of organic searches, not paid advertising. Although the number of visits is usually small, this is not necessarily a bad thing. Leverage referrals, content, marketing and SEO to increase traffic.

4. SEO (Search Engine Optimization)

SEO (search engine optimization) helps visitors to find what they are looking for. SEO can increase your website traffic, so search engines are expected to choose to display your content in search results. For that, in addition to interesting content, SEO must pay attention to URLs, title tags, headings, and links.

5. Bounce rate

Bounce rate is the percentage of visits to the website, without doing anything. This means that visitors leave immediately after seeing only one page on the website. This can happen because visitors feel the content is not interesting or there are too many ads.

To deal with this problem, you can improve your marketing campaigns, update website content, and reduce advertising. Then, choose advertising words that are effective and correct. Because, visitors will feel frustrated when looking for goods or services, but when looking for them on the internet they are referred to websites that have nothing to do with what they are looking for.

6. Engagement rate

Engagement rate is a tool for measuring content performance on social media to find out the high or low interaction of followers on content, such as likes, shares, and comments. Engagement rate is calculated by taking the total number of interactions per post divided by the number of followers.

Engagement rate is very important to see the performance and what type of content you publish. The higher the engagement rate, the higher the content liked by your followers.

In general, KPIs are usually applied to the team in question. Not only that, you also need a metric that can be monitored in real terms as an indicator of the success of the business being undertaken. Therefore, this assessment indicator is very important to be understood by marketing activists, both as employees and business people.

Prasetiya Mulya Executive Learning Institute
Prasetiya Mulya Cilandak Campus, Building 2, #2203
Jl. R.A Kartini (TB. Simatupang), Cilandak Barat, Jakarta 12430
Indonesia
Prasetiya Mulya Executive Learning Institute
Prasetiya Mulya Cilandak Campus, Building 2, #2203
Jl. R.A Kartini (TB. Simatupang), Cilandak Barat,
Jakarta 12430
Indonesia