First of all what is a KPI?
A KPI (Key Performance Indicator) is a measurable value that demonstrates how effectively a company is achieving key business objectives. There are several KPIs that you should be tracking. Organizations use them at multiple levels to evaluate their success at reaching targets.
High-level KPIs may focus on the overall performance of the business, while low-level KPIs may focus on processes in departments such as sales, marketing, HR, support and others.
In this article we will be looking at the main KPIs you should be tracking.
Why are KPIs important?
A Key Performance Indicator ensures clear direction within a company and their client.
When KPIs are clearly established, everyone knows where the priorities and goals are and can work to achieve them to move the business forward.
It also allows you to act quickly in case of a problem or test a new feature.
KPIs for E-commerce
If you’re doing e-commerce, the cart abandonment rate is a key performance indicator or KPI you should absolutely be tracking. It is an indicator that tells you the percentage of visits you want to follow.
As such, you will be able to identify the problems faced by users during the purchase process and make the right decisions afterwards.
In e-commerce, it is also advisable to follow other indicators, such as:
- Bounce rate
- Retention rate
- Conversion rate
- Customer lifetime value
- Return and refund rate
KPIs for Email marketing
To track the performance of your newsletter campaigns, simply monitor the statistics provided by the dashboard of the platform used. The key performance indicators to be taken into account are:
- Open rate
- Click rate
- Email deliverability rate
- Unsubscribe rate
The open rate indicates the proportion of emails that have been opened by your recipients. If the rate is low, it is advisable to review your email and find where the user might be losing interest.
A click rate is the percentage of open emails whose recipients clicked on the links. This indicator gives you a clear idea of the quality of your content.
Also, it is important to have an indicator that lets you know if your emails are getting to the recipients’ Inbox and not in their spam folder.
Finally, you can track the unsubscribe rate which refers to the number of people who clicked the unsubscribe link to stop receiving your emails. Repetitive, irrelevant or spammy looking emails might be the cause so be careful with your campaigns.
Marketing Automation KPIs
To measure the performance of your Marketing Automation, the indicators to monitor are:
- Conversion rate
- Open and Click rate
- Generated income
- Generated leads
- Cost per lead
Social media KPIs
We will now take a look at some KPIs for social media you should be tracking. To measure your performance on social networks, it is important to follow some KPIs specific to each social network.
When analyzing Facebook, you must track the scope and impressions of your publications, interactions, the number of fans (less relevant than it used to be), engagement rate and response rate.
On Instagram, the KPIs to monitor are quite similar to those of Facebook. However, it is important to follow the hashtags, mentions, “regrams”, and many more.
As for Twitter, it’s important to track the growth of your account, as well as the performance of your tweets.
The KPIs to watch for are:
- Engagement rate
- Fan growth
Regarding YouTube, it is advisable to observe certain indicators, namely:
- Number of shares
- Likes / dislikes
Ad campaign KPIs
In PPC, we use KPIs to determine how successful our campaigns is going.
Understanding the key indicators performance is crucial when running a successful campaign.
Measuring properly your campaign performance is the only way to demonstrate ROI both to your clients and to your employer.
Here are the top KPIs to track in your campaigns:
- Click-Through Rate (CTR)
- Quality Score
- Cost Per Click (CPC)
- Cost Per Conversion/Acquisition (CPA)
- Conversion Rate (CVR)
- Impression Share (CPM)
- Customer Lifetime Value
KPIs should be based on what makes the most sense for the client and their goals.
Stick to what clearly indicates progress according to your clients’ standards and don’t overload them with extra KPIs just to look good – less is more when it comes to client reporting.