KPIs in Marketing: What are they and which are the most used?


One of the main differences of digital marketing versus traditional marketing is the ability to measure both the performance and the impact of all your strategies. However, given that all the actions you carry out to achieve your goals are increasingly digitized – which is especially common in the framework of digital transformation – it is common for you to begin to obtain all kinds of data that, in the end , are complex to interpret. To do this, you must be clear about what your KPI (Key Performance Indicator) are.

First of all, you must be clear that all the metrics and data that you obtain from your digital marketing strategies are not the same as a KPI. Although a KPI is also a metric, it differs from other data because it is considered as those indicators that are necessary to evaluate the performance and effectiveness of your marketing actions and strategies.

Thanks to the KPIs you can measure if you are, for example, preparing your content with the right keywords, or if your social media marketing strategies are giving the results you expect, or if your email marketing campaigns are really adding to the achievement of your goals.

Importance of KPIs in your marketing strategy

Unlike your marketing objectives, KPIs are those metrics, both qualitative and quantitative, that allow you to determine if each of your campaigns is giving the expected results through the different dissemination channels.

Choosing the right KPIs to analyze your marketing strategies will allow you to obtain adequate measurements of the progression of each of your strategies. Thus, you can correct in case the results are not as expected. Remember that those data that are really necessary to measure and evaluate whether the actions you have taken to achieve your goals are being successful or not, should be discarded for this analysis, as they do not provide information about effectiveness.

1. ROI – Return on investment

ROI is understood as that economic value generated as a result of the execution of all your marketing strategies. With this KPI, you can measure if your investment has yielded what you expected.

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To calculate ROI, you can use the following formula:

ROI = (Benefits – Investment) / Investment

So, if you spent $ 500 on creating a marketing strategy and got $ 1,500 in returns after execution, your ROI will be 200%.

2. Increase in sales

Increasing sales is one of the KPIs that allow you to determine if your strategies to get qualified leads for sales are working or not. To do this, it is useful to constantly monitor the relationship between both teams based on the qualified leads for sales that you get as a result of your strategies: if your sales team has managed to close more sales — or sales of higher value — thanks to the leads that your marketing team passes them, then your strategy is paying off.

3. Traffic to the website

Many of your marketing strategies focused on attraction and awareness can be measured in different ways. Undoubtedly, one of the objectives that we most often try to achieve with our strategies is the achievement of more traffic, both organic and from other sources.

This KPI, in the case of organic traffic — for example — is measured by analyzing all the actions we take based on the creation of content on our blog. Thus, we monitor the keywords and if their positioning is truly translating into more organic sessions.

4. Lead-to-customer conversion rate

Conversion and generating qualified leads for sale always go hand in hand. That your sales team inform your marketing team how many conversions of the leads that your strategies generated achieve in a given period is very important for the correct calculation of this KPI.

5. The positioning of the keywords

One of the most important KPIs that you should measure to analyze the performance of your SEO strategies has to do with the keywords on your website. Thus, you will know if the content you are developing based on your keyword research, or keyword analysis, is allowing you to appear in the first search results for a set of words whose volume is high. This KPI allows you to know how many keywords you have on the first page of results, in the first positions, among others.

6. The cost per lead

Cost-per-lead, or CPL, campaigns are primarily focused on generating as many leads at the lowest possible price. It is very common in online advertising campaigns, where after making an initial investment, it is analyzed how much each lead cost based on the total investment.

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Thus, the CPL is calculated as follows:

Cost per lead = Cost of generating leads or Investment / Total leads acquired

7. Email marketing engagement

When you do email marketing campaigns, one of the many KPIs that you can measure to determine how effective your campaigns are being is through engagement. Thus, you will be able to know if the content you are sending is receiving the interactions you expect. This KPI must be interpreted according to the context, because if you increase your base of leads or customers, it is normal for the interaction rate to decrease when calculated on a higher basis, which is not necessarily bad.

8. Life Time Value

The Lifetime Value is the net value of the income that a client generates for you during the time that he is your client. This calculation is normally a forecast because, in principle, it cannot be determined with certainty for how long a customer will be your customer, or what their frequency of purchases will be, or how much they will invest in each of them.

And although there are various formulas to calculate this KPI — as it depends on the variables used for the calculation — one of the simplest is the following:

LTV = Average Expense x Acquisition Recurrence x Customer Life

The above are just some KPIs that you can use to measure the performance of your marketing activities and strategies, but there are many others that you can use to analyze your different strategies for each channel. For example:

KPI to analyze your advertising campaigns

  • Campaign performance percentage (global and by segment).
  • Percentage of performance of keywords in your ads (which are the ones that produce the most conversions).
  • Number of search engine queries and percentage and positioning of each keyword.
  • Number of clicks in which conversions occur (based on a specified periodicity).
  • Percentage of performance of your display campaigns.
  • Percentage of performance of your video campaigns.

KPI to analyze your SEO strategies with Google Search Console

  • Indexed pages.
  • CTR improvement and positioning of terms or your keywords.
  • Improvement and increase of visits by external links or backlinks.
  • Improvement in the loading speed results of your website across different devices.
  • Organic sessions.
  • Number of keywords on the first page.
  • Number of keywords in first positions.
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KPI to analyze the performance of your email marketing strategies

  • The exact number of people who opened your email.
  • The open rate o percentage of opening of emails on the total of shipments.
  • The percentage of clicks on the URLs or links inside your emails.
  • The percentage of traffic coming from your emails to your website or social media profiles.
  • The bounce rate.
  • The number of people who unsubscribed after a certain submission.
  • The percentage of clicks on each single opening.
  • The CTR or Click Through Rate

Any marketer who wants to correctly execute marketing strategies in a situation that increasingly forces the adoption of digital tools, must fully understand their KPIs and how to measure them.

It is virtually impossible to develop marketing strategies and execute them without establishing regular KPIs and measurements. Through the KPIs you can determine if your business is reaching the objectives to grow more and more, or if, on the contrary, you must correct aspects of each of your strategies on the fly.

Although it may seem complex, the correct analysis of KPIs involves quantifying, iterating and subsequently parameterizing the factors of your strategies that contribute to the operation and growth of your company. All companies build their strategies based on KPIs that they monitor periodically. Thanks to them they can create reports on the management and determine if all that effort is worth it or not. Otherwise, that same information serves to correct the course.

The job of today’s marketers is not easy. To solve a challenge they must use several tools or depend on a single one that is impossible to use. The result is scattered data, lackluster marketing efforts, and wasted time battling software. But things don’t have to be this way.

Marketing Hub puts all the tools and data on one powerful, easy-to-use platform. You will save time and thanks to the KPIs you will have the necessary context to provide a personalized experience that attracts and converts customers on a large scale.

Jerry Gordon

About Jerry Gordon

Webmaster, nature and tech lover. Jerry manages the day-to-day operations at DigiToolsadvisor. He loves enjoying his free time, but most of all, trying new tools to master.