Key Performance Indicators (KPIs) are a useful way for digital marketers to set expectations. It helps them gauge whether they’re having a positive impact on the business.
Outsiders might not understand how to measure digital marketing activity. But a digital campaign can use metrics and be easier to measure than a traditional marketing campaign.
KPIs are especially helpful to startups so they’re not groping in the dark. They’ll have quantitative proof of whether they’re doing well or not. As a result, they can plan the appropriate measures to address any weaknesses.
Smart marketing planning is integral to any business, even if they’re a startup. And it’s essential for measuring and tracking progress, as well as demonstrating value.
But what are the specific KPIs a startup should eye? This article will discuss that in-depth.
How to Choose Startup KPIs?
While it’s great to have quantifiable goals, it’s best to know what exactly should be measured.
Digital marketing is constantly changing and digital disruptions keep emerging left and right. That’s why, as a startup, it’s best to plan short-term and long-term KPIs.
Choose what to measure which can get nerve-wracking at first. But don’t worry, because it’s simpler than most people think, especially with a digital marketing agency for startups to help.
Startups need to quantify the factors that have an impact on the business’s targets and goals.
Usually, KPIs are connected to a conversion metric which is really helpful for data analytics.
But they need to be more specific and beneficial like users making a purchase or joining the organization’s membership. And for each conversion type set, they have to assign a certain target or goal.
Digital Marketing KPIs for Startups
1. Cost Per Lead
This metric refers to the individual cost for each lead earned. Measuring this makes it possible to know how much money is spent on the budget to get a new lead.
Its purpose is to help evaluate whether the organization is investing the right amount with the efforts applied to get it.
Study the time and resources applied to the strategy within a certain period for better accuracy. The company can play its investment in parallel with the number of leads obtained.
2. Cost Per Conversion
The reason why KPIs are set is to find out what was invested in turning leads into clients. It’s a crucial metric since it will help measure the quality of mid-funnel strategies.
Mid-funnel refers to the middle of the marketing funnel. It’s when clients display the intent to purchase the product.
The rule of thumb remains the same. The higher the conversion rate, the better for the business.
Using CRM software is recommended to measure how many conversions were performed in a certain period. Then, evaluate the cost and efforts used to achieve those statistics.
Divide the monthly cost of a source of leads by the number of conversions. It will enable the startup to find out how much each new customer costs.
3. Net Promoter Score
This KPI helps find the level of customer satisfaction the startup is providing. The marketing team can ask questions in a survey like: From 0-10, what is the chance they’ll recommend this product to their peers?
Then, arrange the customers in groups based on their ratings. Those who rated 9-10 are definitely brand enthusiasts. Meanwhile, 7-8 are satisfied but can still seek better products.
And finally, 0-6 might be dissatisfied customers who may even speak ill of the brand. Then, calculate the average of the ratings to get the customer satisfaction rating.
4. Monthly Website Traffic
This metric is more straightforward than the others. It literally shows the monthly traffic volume on the website. Google Analytics has this feature and will include details like the visitors in:
5. Visits per Channel
Data regarding traffic helps make the inbound strategies. Every business has the goal of attracting customers.
That’s why visits per channel are important. They can show which channels have the most significant traffic.
The startup will also know whether visitors come in via social media, organic searches, or Google Ads. Analytics is the best tool to use for this since it presents this detail in metrics.
Average Time on a Page
The average page time is one of the factors Google’s algorithm considers in SEO. If users don’t spend a lot of time on a page, Google thinks it’s not giving users enough information.
When using Analytics, they can track this KPI and monitor each metric by page:
Enhance content quality to improve the average time users spend on a page. For this tactic, consider hiring professional writers and content strategists.
7. Call to Action (CTA) Conversion Rate
Calls to action or CTAs are used to generate conversions when purchasing items. They can also be used for downloading content and accessing pages.
The metric for this is to measure activity and the rate of conversions obtained through CTA.
CTA conversion rate is offered by Analytics and other software. However, users need to configure which buttons to track in advance. They can access the indicator later to check the conversion rate.
8. Organic Search Traffic
This KPI is also simple. It allows users to visualize how many accessed their site from a Google Search. It’s a free traffic source and comes as a result of good SEO that satisfies Google.
Digital marketing KPIs are important in campaign monitoring and strategizing. Without them, it’s impossible to measure the effectiveness of investments and effort. It will put the whole company’s marketing plan at risk without any KPIs.
Having the data to manage a startup is advantageous. It will help them make informed decisions when improving their marketing strategy.
Choosing the right KPIs might be overwhelming at first. But it’s a lot simpler if they know what they’re looking for.
Monitoring the KPIs listed above will help the startup grow and possibly succeed.
Access to information is worth the investment. The modern age is practically an information war where people with the right data take the lead.