Hey, welcome back to another edition of the common mistakes first-time entrepreneurs make in their marketing. Trust me, I made them too. In today’s blog, I will be talking about digital marketing KPIs i.e. the metrics that you should track to know if your marketing is working or not.
Digital Marketing KPIs
But before I tell you which metrics to track, I’m going to talk about metrics not to track. These are called vanity scales. Simply put, vanity metrics are any metrics that an audience can see. For this reason, we focus on improving those metrics rather than the ones that really matter to our business.
Some examples of vanity metrics could be followers on any of your social media platforms, likes and comments on your posts and reviews/ratings. It’s not that these metrics aren’t important – they certainly are because these metrics actually act as social proof. When someone comes to your social media profile or your website and sees how many people recommend you or say good things about you, they will of course want to do business with you. But as a business, that’s not what your focus should be. These metrics are actually a result of what you do in your marketing. If you market your business well, and if you provide a great service or product to your customers, you will automatically get those great reviews.
Like I said, for marketing to be successful, you really have to focus on the right metrics, and those metrics are determined by your goal.
Let’s say the goal of your campaign is ‘Brand Awareness’. Then the first metric you should measure for that campaign is reach, which is the number of people who viewed your campaign. Keep in mind that your campaign can be digital or print. What matters is how many people saw that campaign because that’s what you want to achieve. You want to increase awareness of your brand. Another way to measure awareness of your brand is to look at reviews. Views can be for a web page, or it can be for a social media post. If your brand awareness marketing campaign is actually an offline campaign – you may have put up a booth at a fair – then the number of visits to your booth will be a measure of brand awareness.
The next goal, which requires a little more involvement from your customer, is Objective of interest. This is where you want your customers to start doing business with you in person. Any marketing campaign that focuses attention must be measured for those metrics. Common metrics of interest are leads, signups, signups, downloads, etc. Anything that requires a potential customer to take action and give you its details, is an objective of the interest.
The third important goal is ‘the transfer’. This is where you really want your customers to do business with you. Of course, if you sell a product, sales are a conversion target, or anyone who converts to a customer will be counted in the conversion metric.
Detailing the key performance indicators
The common mistakes entrepreneurs make here are looking at vanity metrics (as I mentioned before) and not looking at the entire conversion funnel.
All of these goals you talked about are actually your overall goals. These are your biggest goals that you want your business to achieve. But each of these goals is determined by the smaller actions the client might take to achieve that goal. So when you look at your overall goal, make sure you also look at the smaller scales. These smaller metrics will help you identify the weak link in your marketing campaign and then you can improve on it.
Let me explain with an example. For an e-commerce site, if you look at conversion metrics, you obviously count the number of sales in that aspect. But what happens if you don’t get any sales? How do you optimize your marketing campaign so that it leads to sales? This is where the smaller scales come in. One way to break this down into smaller metrics is to look at the number of people who came to your website. Obviously, if not enough people come to your website, you won’t have enough to convert. You can check my ex AndArticles Find out how to measure conversions for any campaign.
- To get X number of sales, you will need to recalculate and decide how many people you need to bring to your website. So the budget becomes an opportunity for improvement.
- The second thing you can look at is how many people came to your website, but then left the site after looking at only one page. Looking at this data will tell you which pages are underperforming. Maybe there are certain pages that people visit and then leave because they don’t understand what you’re trying to get them to do. Maybe there are some pages that are doing well and people go to the next page and maybe sell from that page on. You can look at your data and select the best performing pages. And if you know you can get the best performing pages in front of the people who come to your site.
- Third you can look at is how many people have added a product to their cart, but left. If you look at this data, you will probably be able to identify a pattern. People may add one product more than others and abandon the cart after adding that product. You have to do some research to find out why this happens or you may find this visitors from a certain source. It could be from a Facebook ad, where they come and add a product to their card, but they don’t check out. This could indicate that the people from your Facebook ads aren’t really willing to buy or they aren’t the right audience.
So you can really break down the larger scales into smaller scales. As I showed from this example, there are plenty of opportunities for you to improve your large scale by focusing on the smaller scales that contribute to it.
Let me know if this blog has helped you look at your goals and metrics more clearly than before. And I’ll be back next week with another marketing mistake I made.