Five KPIs Every Digital Marketer needs to trackTRACKING RESULTS

What is a KPI

The beauty of digital marketing lies in the fact that nearly everything can be tracked. Free

tools like Google Analytics give you instant access to the actions, behaviors and locations

of prospects visiting your website, and more robust tools like Marketing Automation

software can trace attribution across channels like email, social media and events.

But this data is useless if it doesn’t relate to your business goals. That’s where Key

Performance Indicators (or KPIs) come into play. A KPI is a measurement that will directly

affect your marketing objectives. For example, if your goal is to increase sales efficiency,

1. Digital Marketing Return on Investment

This is the most important KPI for digital marketers because it

effectively answers the question, “Is this digital stuff even working?”

Not surprisingly, this simple question is also one of the most difficult

to answer. To calculate dmROI, you need to be able to directly

attribute new sales to your online marketing efforts. Putting

processes in place to track and increase ROI should be a top priority

for any digital marketing manager.

How to Measure dmROI: (Total Revenue Attributed to Digital – Total Cost of Digital Marketing)/(Total Cost of Digital Marketing)

2. Website Conversion Rate

Your website should be your number one salesperson, tirelessly working for

you 24/7 to attract new leads and guide them through the sales funnel.

This can be tracked by measuring the number of form submissions, tracked

phone calls and tracked emails coming from your website. If one of your

major tactics is increasing website visitors every month, you should

monitor conversion rate like a hawk

How to Measure Conversion Rate: (Form Submissions + Tracked Calls + Tracked Emails)/(Total Website Visitors) = Conversion Rate

3. Cost per Lead by Source

The number of leads alone does not designate a successful digital campaign. You

want to keep lead acquisition costs low so that you can maintain healthy margins

and see meaningful growth. By measuring cost per lead for different web

sources, you can focus on digital activities that will be the most profitable for

your business and reinvest your marketing dollars accordingly.

How to Measure Cost Per Lead: (Total Spent on Campaign)/(Total # of Leads)  [note: do this for each source]

4. Revenue per Lead by Source

On the flip side of Cost per Lead, we also want to measure the

approximate sales value of each new lead. This will help you

forecast future sales based on expected traffic and conversion

rates. This KPI will help you determine where your most profitable

leads are coming from so that you can reinvest in those channels.

How to Measure Revenue per Lead: (Total Attributable Revenue)/(Total # of Leads)  [note: do this for each source]

5. % of Sales from Digital This last KPI is often overlooked but will justify the role of the digital

marketing manager for many companies. By increasing the share of

total sales attributed to digital marketing, you will effectively justify

your value to the company’s bottom line and make a case for more

investment in your department. Building a sound strategy and

supporting it with the right people and technology is key to

increasing this number over time.How to Measure % Sales from Digital: (Total Revenue Attributed from Digital)/(Total Monthly Sales)