Marketing mistake 6: not knowing the important KPIs of digital marketing

Marketing mistake 6: not knowing the important KPIs of digital marketing

Hello, welcome to another edition of common marketing mistakes new entrepreneurs make. Believe me, I did too. In today’s blog, I’m going to talk about digital marketing KPIs, which are metrics to track to see if your marketing is working or not.

The important KPIs of digital marketing

But before I tell you which metrics to track, I’m going to talk about which metrics NOT to track. These are called vanity metrics. Simply put, vanity metrics are all the metrics that the public can see. For this reason, we focus on improving these metrics rather than the ones that really matter to our business.

Some examples of vanity measures could be followers on any of your social media platforms, likes and comments on your posts, and reviews / ratings. Not that these metrics aren’t important – they sure are because these metrics actually act as social proof. When someone comes to your social media profile or website and sees the number of people recommending or saying good things about you, of course, they’ll want to do business with you. But as a business, that’s not what your goal should be. These metrics are actually the result of what you do in your marketing. If you market your business well and provide great service or a great product to your customers, you will automatically get these great reviews.

Like I said, for marketing to be successful you really need to focus on the correct metrics, and those metrics are defined by your goal.

Let’s say the goal of your campaign is “Brand awareness”. Then the first metric you should measure for this campaign is reach, which is the number of people who viewed your campaign. Keep in mind that your campaign can be digital or print. What’s important is how many people have seen this campaign because that’s what you want to achieve. You want to increase your brand awareness. Another way to measure your brand awareness is to look at points of view. Views can come from a web page or from a social media post. If your brand awareness marketing campaign is in fact an offline campaign – you may have set up a booth at an exhibition – then the number of visits to your booth would be a measure of brand awareness.

The next goal, which requires a little more commitment from your customer, is the “Objective of interest”. This is where you want your customers to start engaging personally with you. Any interest-driven marketing campaign should be measured against these metrics. Common metrics of interest are leads, registrations, subscriptions, downloads, etc. Anything that requires a potential client to take action and provide you with their contact information counts as a goal of interest.

The third important objective is ‘conversion’. This is where you want your customers to do business with you. Of course, if you are selling a product, sales are a conversion goal, or anyone who converts to a customer will count towards the conversion metric.

Break down the KPIs

Common mistakes entrepreneurs make here are looking at vanity metrics (as I mentioned before), not your entire funnel.

All of these lenses I talked about are actually your macro lenses. It is your larger goals that you want your business to achieve. But each of those goals is defined by smaller actions that a client would take to achieve that goal. So, when looking at your macro lens, make sure you are looking at the smaller metrics as well. These smaller metrics will help you identify the weakest link in your marketing campaign, and then you can improve it.

Let me explain with an example. For an ecommerce site, if you look at the conversion metrics, you obviously count the number of sales on that side. But what if you don’t get any sales? How to optimize the marketing campaign so that it translates into sales? This is where your smallest metrics come in. One way to break them down into smaller metrics is to look at how many people have come to your website. Obviously, if there aren’t enough people coming to your website, then you won’t have enough to convert. You can check my previous one ,Blog for how to compare conversions for any campaign.

  • To get X number of sales you need to calculate and say how many people you need to get to your website. Thus, the budget becomes an opportunity for improvement.
  • The second thing you can look at is the number of people who came to your website, but then left the website after viewing a single page. Examining this data will tell you which pages are performing poorly. Maybe there are some pages that people visit and then leave because they don’t understand what you are trying to get them to do. Maybe some pages are performing great and people move on to the next page and maybe head to a sale from that page. You can view your data and decide which pages are performing the best. What if you know you can get the top performing pages in front of the people who come to your site.
  • The third one you can see is the number of people who added a product to their cart, but left it. If you look at this data, you may be able to identify a pattern. Maybe people add one product more than others and abandon the cart after adding that product. You have to do some research to find out why this is happening or you may find that the visitors are coming from a particular source. It could be from a Facebook ad, where they come to add a product to their card, but they don’t verify. This could signal that the people in your Facebook Ads aren’t really ready to buy, or they’re the wrong audience.

So you can really break down your larger metrics into smaller metrics. As I’ve shown from this example, there are plenty of opportunities for you to improve your large metric by focusing on the smaller metrics that contribute to it.

Let me know if this blog has helped you look at your goals and metrics much more clearly than before. And I’ll be back next week with another marketing mistake I made.

Leave a Comment

Your email address will not be published. Required fields are marked *