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5 KPIs to Track for Your Digital Marketing Campaigns

Key performance indicators

Marketing has come a long way from the days when ad executives had to buy commercial time, cross their fingers, and hope for the best. The internet completely revolutionized the industry and introduced new ways to see exactly what was working and what wasn’t.

These analytics are a digital marketer’s Holy Grail. To make sure customers are guided throughout their customer journey and that their campaign strategy is working, digital marketers rely on KPIs.

Key performance indicators (KPIs) are one of the most important assets in a digital marketer’s arsenal. But the never-ending stream of data that flows to your desk is easy to get lost in, so it is important for marketers to narrow down the metrics that matter the most. Here are our top five picks.

Return on Investment (ROI)

The return on investment is probably the most important metric of them all. After all, it’s the best way to gauge if your strategy is profitable. Failure to accurately track and calculate your ROI is a recipe for disaster.

Being able to tell which campaigns are exceeding expectations and which campaigns are eating your budget will give you the opportunity to focus on what works. Tracking ROI will ensure your campaigns are actually serving your company.

Conversion Rate (CVR)

Every digital marketer should be extremely familiar with conversion rates. In the simplest terms, CVR measures and tracks the percentage of users who have successfully completed the desired action a marketer intended.

Conversion rates are essential for digital marketers because they can show how well customers received your message. A low conversion rate is a signal that something in the campaign was either hard to understand or not enticing enough.

A high CVR is confirmation that customers are receiving the marketing message and following through to a sale, sign-up, or whatever product lies at the end of the buyer’s journey.

Customer Acquisition Cost (CAC)

Customer acquisition cost is simple to understand. The definition is in the name. CAC delves into the total sales and marketing spending that will be required to acquire a new customer.

The CAC is a key KPI to track, mainly because knowing how much a customer costs in the present will give a digital marketer a good idea of how much they will cost in the future. A full understanding of the CAC is vital when you want to improve your profit margins.

Click-Through Rate (CTR)

The CTR gauges the entire number of clicks against the number of people in total who saw an ad. Explore the CTR for an average company in your niche and make a plan to beat it.

Customer Retention Rate (CRR)

The CRR assesses the number of customers a company retains over a given period of time. This KPI is one of the best ways to measure customer loyalty. CRR weighs how good a company is at gaining new clients, but also whether they’re keeping customers satisfied.

Repeat customers are the most profitable, which means that customer retention is crucial for any business.

Improve Your Campaign Strategy Today

Tracking KPIs and fine-tuning your campaign strategy can be overwhelming. Partnering with a professional firm like Net Profit Marketing will transform your analytics and grow your business substantially.

Contact us today to learn more about how we can overhaul your campaigns and grow your profits!

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