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10 KPI'S Every Digital Marketing Manager Needs To Know (2014)
1.
SOCIAL MEDIA KEY PERFORMANCE INDICATORS Shiv
2.
SOCIAL MEDIA KEY
PERFORMANCE INDICATORS When it comes to setting and tracking marketing KPI's, many marketers and business owners are fully aware of the usual suspects; Sales Revenue, Leads, Cost Per Acquisition There are a number of other KPI's that you should be tracking in order to execute a more successful social media marketing campaign. I have listed the top ten most essential of them. © 2014 Shiv
3.
SOCIAL MEDIA KEY
PERFORMANCE INDICATORS 1. Return on Investment ROI is the single most important KPI for any marketing team to monitor and is the first KPI your marketing executive will ask for when assessing your team's performance To calculate ROI, you will need to track the number of leads generated through each of your marketing campaigns, such as a banner ad or Ad Words campaign Next, you will need to determine the opportunity value of each lead. To calculate this, find your average value per win and divide that value by your average lead to win ratio For example, if you know that the average value of a win is $20, and your lead to win ratio is 10:1, then you can say that the average value of a lead is $2. This number will provide an approximate value to help you assess the performance of your campaign as you bring in each new lead Leads = New prospects generated by a marketing campaign Incremental sales = New revenue generated by a marketing campaign Wins = New customers generated by a marketing campaign Success indicators; Incremental sales are greater than campaign investment. © 2014 Shiv
4.
SOCIAL MEDIA KEY
PERFORMANCE INDICATORS 2. INCREMENTAL SALES The Incremental Sales KPI measures the contribution of your marketing efforts to increasing sales revenue. This KPI emphasizes the close relationship between sales and marketing, and how that relationship benefits your organization The incremental sales KPI is one of the most consistent ways to measure your marketing return on investment as it demonstrates new revenue that can be directly attributed to a marketing campaign Success indicators; Incremental sales that exceed the initial marketing investment Indirect increase in sales that can be attributed to a marketing campaign Note; The problem for marketing teams is that campaigns may generate new leads or sales indirectly. For example, a banner campaign with a large volume of impressions may encourage people to complete what is called a "view through conversion." This means that a visitor may see an ad, visit the website in a separate browser tab or window, and then complete a goal without actually clicking on the banner ad. The result is the same, but the path and credit for the completion are very different. © 2014 Shiv
5.
SOCIAL MEDIA KEY
PERFORMANCE INDICATORS 3. TRAFFIC SOURCES The Traffic Sources metric measures which traffic sources are driving visitors to your website, and provides a comparison of each of those sources. The three main traffic sources are Direct, Referral & Search, although your website may also have traffic from campaigns such as banner ads or paid search Success indicators; An increase in volume from any traffic source, while maintaining consistent traffic from other channels A high or improving goal conversion rate related to any traffic source. © 2014 Shiv
6.
SOCIAL MEDIA KEY
PERFORMANCE INDICATORS 4. PURCHASE FUNNEL The Purchase Funnel analyzes your customer acquisition process to help you understand how potential customers discover your product or brand and, more importantly, how they eventually become a loyal customer. The key to the purchase funnel is analyzing conversion rates from one stage of the funnel to the next. The strength of the funnel is the ability to zero in on your strengths and weakness Success indicators; A high conversion rate through all stages of the funnel High volume through each stage of the funnel Improving conversion rates for stages performing poorly. © 2014 Shiv Awareness Interest Consideration Preference Purchase
7.
SOCIAL MEDIA KEY
PERFORMANCE INDICATORS 5. GOAL COMPLETION RATE Goal Completion Rate (GCR); Marketing metrics like GCR are an important part of the purchase funnel as it typically demonstrates your conversion rates from the awareness stage to the consideration stage GCR is a leading indicator of how well your website resonates with your target audience. Content strategist and website analysts will use your site wide GCR as a baseline value to compare all the pages on your website. Pages below the threshold will require optimization, while pages above the threshold should be analyzed so you can repeat your success elsewhere Success indicators; A high goal GCR shows that your campaign is encouraging your target audience to act A high lead to win rate shows that your campaign is generating highly qualified leads for your sales team. © 2014 Shiv
8.
SOCIAL MEDIA KEY
PERFORMANCE INDICATORS 6. KEYWORD PERFORMANCE Keyword rankings is a leading indicator which provides valuable information about your ability to improve on existing rankings or rank on new keywords. That said, SEO efforts need to account for the "big" marketing picture and analyze other factors such as goal completion rates and return on investment Success indicators; Improving rankings for a keyword or keyword group Improving click-through rates for ranked keywords Improving goal completion rates for organic traffic visitors. © 2014 Shiv
9.
SOCIAL MEDIA KEY
PERFORMANCE INDICATORS 7. END ACTION RATE While similar to the goal conversion rate KPI, End Action Rate provides a broad assessment of campaign performance by monitoring all possible outcomes The end action rate KPI is intended to provide your team with actionable information about your campaign performance. For example, if you are running a banner ad campaign with a specific landing page, you will want to monitor secondary metrics as well as goal completions. These secondary metrics will tell you how well the page resonates with your audience and if the campaign was generally well received. Many prospects aren't ready or willing to commit to a purchase or share contact information on their first visit to your website, but a good first impression can result in future engagements Success indicators; Campaigns that result in a high number of leads or wins Campaigns that generate positive events like social engagements or contact requests A reduction in negative events like bounces and exits. © 2014 Shiv
10.
SOCIAL MEDIA KEY
PERFORMANCE INDICATORS 8. COST PER LEAD The purpose of this metric is to provide your marketing team with a tangible dollar figure so they understand how much money is appropriate to spend on acquiring new leads The cost per lead metric also provides important data to use in your return on investment calculations. In fact, each stage of the purchase funnel should have similar metrics associated with it, such as cost per visitor and cost per win. Likewise, these metrics can be used to monitor individual campaigns such as AdWords, banner ads, or social ads, or the sum of your marketing efforts Success indicators; A low cost per lead with a high volume of quality leads. © 2014 Shiv
11.
SOCIAL MEDIA KEY
PERFORMANCE INDICATORS 9. EMAIL MARKETING ENGAGEMENT SCORE The Email Marketing Engagement Score metric measures how effective your campaigns are at engaging your audience by tracking key metrics like open and click rates. Each of these metrics represents a different type of engagement which will help you assess the performance of your campaign. Open rates are linked to subject line performance, the credibility of the sender, and the time the campaign was sent; click rates, on the other hand, are indicative of how well the content resonates with the audience and the relevance of the message Success indicators; A high and/or improving open rate A high and/or improving click rate. © 2014 Shiv
12.
SOCIAL MEDIA KEY
PERFORMANCE INDICATORS 10. SOCIAL INTERACTIONS Key interactions can play a pivotal role in a post or story going viral, so ensuring you are nourishing the right types of interactions is very important. As well, a strong social media measurement strategy will map these interactions to other marketing goals, such as website conversions or new wins When measuring social interactions, it's important to remember that not all social interactions are equally valuable; each social platform comes with a number of different ways to interact with your audience. For example, one could argue that a "retweet" is more valuable than a "favourite" on Twitter because a retweet ensures the content stays in circulation longer. Similarly, different social media sites will have varying importance to your brand. One brand may find that Facebook is a hotbed of positive engagement, while another brand really hits its stride on Pinterest Success indicators; • A high level engagement that corresponds to the completion of key marketing objectives • Viral posts that require little or no nurturing on your behalf • Sustained engagement over a long period of time. © 2014 Shiv
13.
SOCIAL MEDIA KEY
PERFORMANCE INDICATORS Sources: http://bit.ly/XsM8R http://bit.ly/XsMhVBU http://bit.ly/XsMyaU http://bit.ly/XsMDvi http://bit.ly/XsMKXL There are a number of social media content solutions providers in the market, to list a few; Radian6, Sysomos, HootSuite, Tweetdeck, Facebook edgerank & Google Analytics. © 2014 Shiv