The marketing indicators are indispensable tools for any business strategy.
This is because they give you an in-depth understanding of how your campaigns are performing and provide valuable data about your business and audience, as well as providing a solid basis for optimizations.
There are countless marketing indicators, each aimed at a different aspect of various strategies. Read on, understand what Key Performance Indicators (KPIs) are and get to know the 15 main ones for your strategy.
What are KPIs?
The acronym KPI stands for Key Performance Indicator, or in Portuguese, Key Performance Indicator and is used to assess whether certain marketing actions are performing as expected.
Through these indicators, it is possible to find opportunities for improvement and failures in execution in order to correct them in time to achieve a campaign's objectives.
Analyzing marketing KPIs is fundamental to measuring the return on actions. Based on this analysis, it is possible to change course or give direction to the strategy as a whole.
Difference between Metrics and Indicators
Metrics and indicators help position management to make strategic decisions in the company.
Both help to achieve the results set out in the marketing plan. However, we can say that metrics are at an operational level and indicators at a tactical level.
For example, metrics are measured in values and quantities, while indicators are calculated measures, usually represented by percentages, with a broader and more targeted vision.
15 Key Digital Marketing Indicators
Check out the 15 main digital marketing indicators for evaluating the performance of your online strategies.
ROI
The acronym ROI stands for Return on Investment. This indicator shows how much profit or loss the company is making on an investment made. ROI encompasses various expenses, including those outside of digital marketing, and gives an overview of the financial health of the operation.
Average Ticket
The average ticket is how much each customer spends on average in the online store. This indicator is calculated by dividing turnover (revenue) by the number of sales over a period of time. If an e-commerce store makes 800 sales in a month, earning 100,000, for example, the average ticket during that period will be R$125.
Conversion rate
Converting means turning simple visitors into leads. In other words, offering something in exchange for their contact details so that you can continue to guide them through the funnel. The conversion rate indicates precisely how many customers you manage to convert through your strategies.
Google Ads also has a conversion indicator. The conversion rate, in this case, indicates the average number of conversions per interaction with the ad. That is, how many people who click on your ad actually buy a product or subscribe to your newsletter, for example.
Rejection rate
Also known as the bounce rate, the bounce rate indicates the percentage of single page sessions. That is, visitors who started a session by entering a page on your site, but for some reason did not interact and left.
CTR (Click-Through Rate)
The click-through rate (CTR) indicates the ratio between clicks on your ad and the number of times it was seen. In other words, it's the number of clicks divided by the number of impressions. An ad with 5 clicks and 100 impressions, for example, would have a CTR of 5%.
CPC (Cost per Click)
CPC, Cost Per Click, is how much you pay for each click your ad receives. On Google Ads and other platforms, you can set a maximum CPC value. However, most of the time you pay a lower amount, known as the real CPC, calculated on various criteria.
CPM (Cost per Thousand Impressions)
CPM, or Cost Per Thousand Impressions, is a billing alternative to CPC. With it, instead of paying for clicks, you pay whenever your ad is shown a thousand times. This can be interesting, depending on your strategy.
Number of Leads
A lead is basically any consumer who has shown an interest in the products and/or services you offer, either by subscribing to your newsletter or by downloading an ebook in exchange for their contact details. This indicator shows the number of leads your business has.
SQL (Sales Qualified Leads)
No lead is a guaranteed customer. They will only become a customer once they have passed through the sales funnel to the final stage: the purchase stage. Leads at this stage are called Sales Qualified Leads (SQL). And this indicator shows precisely how many SQL leads your business has.
Lifetime Value
Lifetime Value, on the other hand, is a projection of how much future revenue and profit a customer can generate for e-commerce throughout their lifetime. Calculating this indicator is more complex, as a number of aspects need to be taken into account. These include the value and recurrence of purchases.
Cost per Conversion (CPA: Cost per Acquisition)
Cost per Conversion (CPA), on the other hand, shows on average how much each conversion costs your business. This indicator is available in Google Ads, Facebook Ads and other platforms.
ROAS
ROAS is an acronym for Return on Advertising Spend. It's like an exclusive ROI for Ads. So it basically indicates what the return has been on the paid media strategies used by the e-commerce business.
Traffic source
This indicator is usually available on analytics platforms.
Revenue
The revenue of an e-commerce business comprises everything the business makes in a given period of time. In other words, it's everything that comes in from the sale of products. It's important not to confuse it with profit, which is revenue minus expenses.
Transactions
The transactions indicator shows the number of electronic financial transactions that e-commerce carries out in a given period of time. In other words, all sales made regardless of the payment method used by the buyer.
Although they may seem like a lot, these are just a few of the many indicators available in digital marketing for you to monitor and analyze your strategies. But it's important to know that you don't need all of them.
Ideally, you should choose the ones that best suit your type of business, the campaigns you run and the strategies you use.
Check out these other articles on our blog that may interest you:
Digital Marketing Funnel: What is it and how to optimize it?
Why invest in the top of the funnel with paid media?
7 Ways to invest in the top of the marketing funnel with Pareto
