The document discusses key performance indicators (KPIs) that organizations should know, focusing on KPIs for digital marketing. It defines KPIs as quantifiable metrics that measure the success of activities and projects. The document then provides examples of KPIs for sales, marketing, social media, and SEO. Common KPIs include sales growth, return on investment, keyword rankings, follower count, and traffic sources. Overall, KPIs help organizations evaluate performance, understand their position in the market, and identify areas for improvement.

1. KPI’S YOU SHOULD
KNOW
Tested Digital Expert Ltd

2. Background:
 Let’s begin with the definition of a KPI, the
acronym stands for a Key Performance Indicator.
KPI’s help evaluate the success of a specific
activity an organisation partakes in, such as a
Marketing strategy. An organisation would set a
quantifiable measurement before a project and
then measure the outcome against the KPI, thus
illustrating the performance of the task. KPI’s are
usually integrated in long term plans, such as
executing a Digital Marketing strategy through a
Gantt chart.

3. Types of KPI’s:
 There are various examples of
key performance indicators
which are suitable to each
type of organisation. However
in this article we will explore 4
different Digital Marketing
sections, which you can
implement into your Marketing
strategy to gain more insight
about your follower base.

4. Sales KPI’s:
 Sales Growth – is quite simply used to measure the rate at how much your
sales revenue is increasing or decreasing. Sales form a major part of an
organisations decision making strategy, therefore using such metrics will
allow you to set goals to measure your current performance and improve
your business’s profitability.
 Sales Opportunities – are in essence the possibility and opportunity value
of closing a sale.
 Product Performance – as with any business, some products sell more
than others. This performance metric ranks products based on their
popularity. Products lower down in rankings means that they may need
more R&D/ Marketing.
 Sales Target – measures the number of sales made and compares this to
a previous target figure. This is ideal for future sales projections and
motivating employees to aim higher.
 Average Purchase Value – this KPI is used to calculate the (average)
value of each sale made. It’s also used to measure your consumers’ buying
behaviour.

5. Sales KPI’s:
 Sales by Contact Method – determines which contact methods (face-
to-face/ telephone etc) are most successful at producing sales. A
combination of sales methods may be used depending on the
organisation, but the cost of such methods should also be considered
when implementing a new strategy.
 Sales Bookings – this KPI calculates the number and value of sales
bookings in a specific period of time. A booking is essentially a sale
where the purchase has been made official (approved).
 Quote to Close Ratio – this metric measures how many quotes were
sent out to potential customers against the number of deals made
official.
 Sales Per Rep – this particular metric is comparatively more in depth,
as it measures the ability/productivity of each Sales Rep against one
another. In order to increase sales by determining employee’s
strengths and weaknesses.

6. Marketing KPI’s:
 Return on Investment (ROI) – this KPI calculates the amount of
capital a Marketing campaign generates against its cost. This is an
essential KPI in Marketing as it allows you to monitor your strategy
regularly and indicates whether you should continue with it.
 Incremental Sales – calculates the contribution of your marketing
expenditure regularly. Although this performance metric similar to
ROI, it closely measures the relationship between Marketing and
revenue.
 Traffic Sources – measures where visitor traffic to your website
comes from in detail by comparing their popularity (search/referral
etc).
 Purchase Funnel – analyses your customers buying behaviour in 5
steps (awareness, interest, consideration, preference and purchase).
This KPI involves mapping a customers purchasing journey through
measuring conversion paths.

7. Marketing KPI’s:
 Goal Completion Rate – this indicates the amount of people who
completed a goal (marketing objective) such as subscribing to a blog. This
metric is related to the Purchase Funnel as it forms part of the interest and
consideration stages.
 Keyword Performance – calculates specific keyword rankings in search
engines to indicate how successful any SEO efforts are at sending traffic to
your website.
 End Action Rate – this KPI measures the effectiveness of your marketing
campaigns by monitoring the last action taken by your audience (e.g.
bounce rates, purchases etc).
 Cost Per Lead – assesses the effectiveness of your marketing campaigns
in terms of generating “leads” for every pound (£) spent.
 Email Marketing Engagement – measures how effective email campaigns
are at engaging your audience through metrics such as click rates.
 Social Interactions – calculates the level of interaction from your audience
though social media campaigns.

8. Social Media KPI’s:
 Key Social Metrics – assess the impact of your social media
strategy on other marketing channels (conversions/website
referrals).
 Social Followers vs. Target – calculates the amount of followers
you have attained on a social media channel (e.g. Twitter) in
comparison to the target amount set, thus illustrating your progress.
 Social Interactions – quite simply measures the level of
engagement on a specific social platform (e.g. YouTube
Subscribers), which informs you of your social media presence and
how effective your campaigns are.
 Social Events – monitors social “events” on a regular basis, such
as the number of likes/mentions you have received. Each
interaction will have a different value, for example a Facebook
“share” will be more effective than a “like”.

9. Social Media KPI’s:
 Social Traffic & Conversions – this KPI measures how
successful a social media campaign is at generating goal
conversions and website traffic.
 Social Visits & Leads – calculates how effective your social
media strategies are at sending visitors and leads (new
prospects) to your website.
 New Followers – measures the number of new followers you
have achieved over a specific period of time.
 Facebook Page Demographics – collects and analyses
information about your followers; such as follower age,
gender and location. In order to give you more understanding
into whom your target market is primarily made up of.

10. SEO KPI’s:
 Keyword Opportunity – measures the opportunity of improving your
keyword search rankings by comparing them competitors’ current rankings
and traffic volume in search engines (e.g. Google).
 Keyword Click Through Rate – computes how frequently your website/ad
listing is clicked compared to the number of people conducting a particular
search.
 Search Traffic Performance – this KPI measures the number of visits to
your website that are either organic/paid search.
 Keyword Ranking – calculates your ranking based on targeted keywords
in search engines and then analyses their ranking over time. This KPI is
essential in Search Engine Marketing (SEM).
 Domain Authority – determines the “trust” factor if your website domain
based on the number and authority of links to your domain. Using such a
KPI can in effect, help increase the amount of trust that search engines
place on your domain.

11. Conclusion:
 Overall, Key Performance Indicators form a major part in
providing vital information to measure and analyse an
organisation’s strategic progress. These metrics also educate
organisations regarding their; current position in the market,
competitiveness, audience statistics and potential critical
issues they should develop. Lastly, KPI’s promote
implementing long term goals through regularly tracking and
measuring the marketing strategy.
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12. References:
 http://smallbusiness.chron.com/importance-
kpi-4581.html