When we talk about a key performance indicator (KPI) in a general sense, we are referring to variables that allow you to measure a specific performance. In the business world, KPIs can be used in various ways. Especially in the online marketing world, KPIs are used extensively, partly because many things are measurable within internet marketing.
Below, you’ll first learn what criteria a KPI must meet in order for you, as an online marketer, to use it effectively. Later in this article, we’ll provide numerous examples of KPIs that can provide you with exceptionally useful information in online marketing.
What criteria must a KPI meet?
As we mentioned in the introduction: a KPI makes things measurable and thus provides information about specific performance metrics. If you use the same KPIs on a regular basis, you can logically measure whether you are making the desired progress. And if this progress is not being made, you will immediately know which areas of your organization still need improvement.
Ideally, a KPI should have a logical connection to a specific objective. Therefore, when discussing objectives and KPIs, it is best to always keep the SMART principle in mind. The letters SMART stand for Specific, Measurable, Acceptable, Realistic, and Time-bound. In this way, a KPI will clearly and concretely indicate whether a specific objective has been achieved.
Examples of online marketing KPIs
In the world of online marketing, it is common to work with KPIs. Below are a number of examples of KPIs that frequently appear in this field:
Website visitors
This factor is, of course, always important in online marketing. This KPI can also be broken down into sub-KPIs. For example, you can also determine which pages were visited, how often, and for how long. Consider these KPIs, for instance:
- Number of visitors over a period.
- New visitors or the percentage relative to the total number of visitors.
Bounce rate
The bounce rate indicates how many visitors viewed only one page on your website. In Google Analytics, this refers to a single page load per website visit.
Bounce rate calculation: number of visits where a single page is loaded / divided by total visits.
For example: 10 visitors with one page / 100 visitors in the same period = 10% bounce rate.
Conversion
Because let’s face it: having enough website visitors isn’t enough on its own. A sufficient number of these visitors must also do what you want them to do, such as making a purchase or getting in touch. This conversion is often expressed as a percentage.
Costs and returns
Data relating to finances and the efficiency of investments made. By first mapping out total marketing expenses and then the number of leads and/or paying customers, you can effectively assess this efficiency (cost per lead or customer).
Online marketing tools
Tracking KPIs isn’t always a simple task, especially when it comes to in-depth data. That’s why it’s good that there are various online marketing tools available that make it much easier to generate this data. The most well-known program you can use for this is likely Google Analytics. Another Google tool that allows you to gather a lot of information is Google Ads. In addition, there are various data dashboards and CRM systems that can go a long way toward helping you report on KPIs.
