Digital Marketing Top Performance Indicators

1. Five KPIs Every Digital Marketer
needs to track
TRACKING RESULTS

2. What is a KPI
 The beauty of digital marketing lies in the fact that nearly everything can be tracked. Free
tools like Google Analytics give you instant access to the actions, behaviors and locations of
prospects visiting your website, and more robust tools like Marketing Automation software
can trace attribution across channels like email, social media and events.
 But this data is useless if it doesn’t relate to your business goals. That’s where Key
Performance Indicators (or KPIs) come into play. A KPI is a measurement that will directly
affect your marketing objectives. For example, if your goal is to increase sales efficiency,

3. 1. Digital Marketing Return on Investment
 This is the most important KPI for digital marketers because it effectively
answers the question, “Is this digital stuff even working?” Not surprisingly,
this simple question is also one of the most difficult to answer. To calculate
dmROI, you need to be able to directly attribute new sales to your online
marketing efforts. Putting processes in place to track and increase ROI
should be a top priority for any digital marketing manager.
How to Measure dmROI: (Total Revenue Attributed to Digital – Total Cost of Digital
Marketing)/(Total Cost of Digital Marketing)

4. 2. Website Conversion Rate
 Your website should be your number one salesperson, tirelessly working for
you 24/7 to attract new leads and guide them through the sales funnel. This
can be tracked by measuring the number of form submissions, tracked
phone calls and tracked emails coming from your website. If one of your
major tactics is increasing website visitors every month, you should monitor
conversion rate like a hawk
How to Measure Conversion Rate: (Form Submissions + Tracked Calls + Tracked
Emails)/(Total Website Visitors) = Conversion Rate

5. 3. Cost per Lead by Source
 The number of leads alone does not designate a successful digital campaign. You want
to keep lead acquisition costs low so that you can maintain healthy margins and see
meaningful growth. By measuring cost per lead for different web sources, you can
focus on digital activities that will be the most profitable for your business and reinvest
your marketing dollars accordingly.
How to Measure Cost Per Lead: (Total Spent on Campaign)/(Total # of Leads)
[note: do this for each source]

6. 4. Revenue per Lead by Source
On the flip side of Cost per Lead, we also want to measure the approximate
sales value of each new lead. This will help you forecast future sales based
on expected traffic and conversion rates. This KPI will help you determine
where your most profitable leads are coming from so that you can reinvest
in those channels.
How to Measure Revenue per Lead: (Total Attributable Revenue)/(Total # of Leads)
[note: do this for each source]

7. 5. % of Sales from Digital
 This last KPI is often overlooked but will justify the role of the digital
marketing manager for many companies. By increasing the share of total
sales attributed to digital marketing, you will effectively justify your value
to the company’s bottom line and make a case for more investment in
your department. Building a sound strategy and supporting it with the
right people and technology is key to increasing this number over time.
How to Measure % Sales from Digital: (Total Revenue Attributed from
Digital)/(Total Monthly Sales)