What is KPI (Key Performance Indicator) in digital marketing?

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What is KPI (Key Performance Indicator) in digital marketing?

What is KPI (Key Performance Indicator) in digital marketing?

In an increasingly saturated market, marketing is an essential tool to stand out from the competition and directly reach the target audience. However, any marketing campaign must be measured to assess its effectiveness and make changes as necessary along the way. To make these measurements, it is necessary to determine the KPIs.

What is KPI in marketing?

The term KPI refers to the acronym in English for Key Performance Indicator , which translates as Key Performance Indicator, and refers to a series of metrics that are used to analyze the effectiveness of the actions carried out in a company . Also known as quality indicators or key business indicators, they can be used in any sector, although they are very common in marketing.

The KPIs provide useful information to determine whether the planned objectives have been met and facilitate decision-making on certain commercial or advertising strategies . They allow knowing if the actions are giving the expected results or, on the contrary, it is necessary to apply corrections.

What are the main KPIs in marketing?

In the area of ​​marketing there are dozens of KPIs, although they all meet a series of requirements that guarantee their reliability. A key performance indicator must be specific, objective, quantifiable, concise, relevant, periodic and, of course, measurable. An eMarketer survey of marketers revealed the most important KPIs in their work:

  1. Conversion rate. This KPI in digital marketing refers to the percentage of users who perform a specific action, from a purchase to a download, a registration or a reservation. It is a key indicator because it clearly shows how effective the marketing strategy is and is obtained by dividing the number of goals achieved by the unique users who visit the website.
  2. Return of investment. It measures the economic performance obtained when making an investment, allowing to know how much money has been generated with a campaign on social networks or email marketing, to assess whether it has been profitable or has not given the expected results. This indicator allows you to set more realistic goals and identify the actions that generate the greatest return to make smarter investments.
  3. Customer lifetime value. This KPI refers to the total revenue that a business can expect from a customer’s account, so it reflects the value of the customer. It is a particularly important metric because it allows you to identify the most valuable customer segments to optimize lead nurturing strategies . Also, taking into account the cost of customer acquisition helps determine how long it takes to pay back your investment when you get a new customer. Check out more interesting stories on at our Tesla Blog.
  4. Web traffic sources. This KPI refers to the ways in which users access a website. Basically, users can access it directly by typing the url of the site in their browser, through search engines or sponsored ads on them, as well as by clicking the link on another website or social network. This key performance indicator allows you to know which channels generate the most traffic and conversions to retarget marketing strategies.
  5. Qualified marketing lead. This indicator confirms that a marketing strategy is well focused since it indicates a qualified lead that has shown interest in the brand or content on different occasions and can become a potential customer when they are within the MOFU phase ( Middle of The Funnel ). ).

Of course, there are many other marketing KPIs, such as social media engagement level, bounce rate, number of newsletter subscribers, or repeat visitors. Before launching a marketing campaign, you will have to choose the most relevant KPIs according to its objectives and what you want to measure, in order to have reliable data.

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