In digital marketing, there are many different metrics that can be tracked and monitored for success. The most important of these is the digital marketing KPI or Key Performance Indicator. A digital marketing KPI measures your digital performance in a specific area such as time on site, number of visits per visitor, bounce rates and conversion rate. But not all digital KPIs measure the same thing; some focus on traffic sources while others only look at conversions from an SEO perspective. This article discusses how to choose digital KPIs for your business by answering questions about what you want to know about your website visitors and which metrics will help you grow revenue.
Here are 12 digital marketing KPIs you might want to use:
Time on Site:
Time on site is a digital marketing KPI that tells you how long your visitors are staying on your website. This can help you identify if they found what they were looking for or not, and to provide relevant content accordingly. Use this digital marketing metric by placing it in the header section of all web pages so time spent per page is automatically tracked (without having to manually input each visit). You will need an analytics program such as Google Analytics
Number of Visits Per Visiter:
Number of visits per visitor measures whether people come back after their first visit to take action again. If there’s only one conversion from 1000 sessions then this would be low at 0.01%. A high number tells you that visitors are coming back to your website.
Number of Sessions:
Number of sessions measures how many times a digital marketing visitor comes to the site and includes all drop-offs such as cart abandonment or bouncing from page to page without taking action. It is an important digital marketing metric since it provides insights into customer engagement, including usability issues on pages where users stop engaging with content before completing their intended activity (e.g., purchasing).
Bounce rate refers simply to when people visit only one web page then leave. A high bounce rate indicates low digital performance – potential problems include unappealing offers, poor landing pages and not enough relevant content for new visitors. Tracking this digital kpi will help identify if changes need to be made to digital content and how well it’s performing.
Converting visitors into paying customers is the ultimate goal of digital marketing since this will grow revenue for your business. Tracking conversion rate allows you to know which digital strategies are working, so rather than focusing on all digital activities equally (which may lead to inefficiency), allocate resources where they can have the biggest impact. Conversion rate should not just refer to sales but any type of customer action that needs tracking such as newsletter signups or product downloads, etc…
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Total Revenue Per Visitor:
Another important digital kpi is total revenue per visitor – this tells you whether your campaign results in a profit from each new or returning customer who comes back after their first purchase.
Average Order Value:
Another digital marketing KPI is average order value (AOV) which tells you the revenue per transaction, and how much money each new visitor to your site spends on average when they purchase something from you. This digital metric will help with projecting future sales if trends continue in the same direction.
Cost Per Click (CPC):
CPC focuses on digital advertising campaigns such as PPC or social media ads; this digital kpi shows cost vs clicks allowing advertisers to see whether their digital ad spend was profitable for them or not since it’s calculated by dividing total costs by total number of clicks made during an advertiser’s campaign period. Since there are many different factors that can influence conversion rates, choosing one digital campaign over another is not always easy. This digital marketing KPI will help see which campaigns perform better and allow you to allocate more resources where they are most needed.
Number of Leads:
Number of leads shows whether visitors are taking action like signing up for a newsletter or downloading digital content after visiting your site; tracking this digital kpi will show which digital campaigns work best in bringing new users through the door, so allocate more resources where they’re needed most.
Average Revenue Per User (ARPU):
ARPU is calculated by dividing total revenue from all purchases made by customers during period under consideration, then divided by number of unique customers over that same time span. Tracking this digital metric will help with profitability projections since if trends continue, future sales based on previous activity would be similar however there’s always the chance things change.
Average Revenue Per Order (ARPO):
ARPO digital KPI is a digital metric that tells you revenue per order and how much money each new visitor to your site spends on average when they purchase something from you, this digital marketing kpi will help with projecting future sales if trends continue in the same direction.
Click-Through Rate (CTR):
CTR measures how often visitors click on links within online ads; tracking this digital kpi helps show which campaigns are most effective in driving digital traffic to your site. If CTR is low, switch digital marketing strategies for better results to maintain ROI.
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