Key Performance Indicators
\nInternet Data Analysis for Business
\nDMKT305-1901A-01<\/p>\n
Key Performance Indicators for Digital Marketing
\nKey performance indicators are those measurable values that can be used as an accurate representation of how a company is performing in terms of meeting its set business objectives. It is thus, essentially a useful mechanism\/tool for evaluating the level of success in achieving a given desired objective by an organization (Klipfolio, 2019). There are several metrics that can be used as key performance indicators in trying to evaluate organizational performance. The following table illustrates the various key performance indicators as applied to an integrated digital marketing drive.
\nGoal\tKPI Measurement\tExplanation\tFormula
\nIncrease sales by 20 percent
\nIncremental online conversion rate.\tOnline conversion rate, in this case, refers to the ratio of leads generated by digital marketing platforms that are actually converted into actual sales.
\nThis will involve focusing on how the firm\u2019s customers use the company\u2019s web site, and also specific product pages. It will also involve, reviewing landing pages and interaction viewing advertisements. From this information we can make adjustments that will enhance the number of leads to convert them into online sales.
\nConversion rate = Total number of sales \/ Number of leads * 100<\/p>\n
Evaluate the financial viability of integrated digital marketing platforms<\/p>\n
The projected rate of return
\nThe projected rate of return is an estimation of the averages of all the expected returns from a given investment.\tThe projected rate of return = (Total sum of expected revenues * their probability) \/ number of expected outcomes.
\nEvaluate the financial viability of integrated digital marketing platforms<\/p>\n
Break-even point\tBreak-even point is an estimation of when a given investment will ultimately be able to balance the costs of production with the revenues and thus obtaining a net margin of zero instead of a loss. It is expected that new ventures start by earning negative revenue and then they break even after which they are expected to generate profit
\nBreak-even point- total revenues-Total costs =zero.
\nIncrease email marketing performance by 10 percent
\nEmail Marketing engagement scores\tThis KPI measures how interactive the marketers are with their potential leads. It is expected that the more the engagement the higher the brand awareness and consequently the potential for generating new sales leads
\nEmail Marketing engagement scores = number of lead generated \/ the number of email contacts
\nIncrease email marketing performance by 10 percent
\nEmail Forwards \tThis KPI is a measure of the likeability and appropriateness of the contents of the marketing emails. A potential client would only forward those emails they like and thus creating a wider brand reach.
\nEmail Forwards= total number of emails forwarded.
\nIncrease email marketing performance by 10 percent
\nEmail subscribers versus unsubscribes metrics \tThis KPI is a measure of the likeability and appropriateness of the contents of the marketing emails. If the content of the emails is not relevant or appealing to the potential client then they would most likely unsubscribe from the company\u2019s mailing lists.
\nEmail subscribers versus unsubscribes metrics= number of email subscriptions\/ number of unsubsriptions.
\nIncrease brand awareness \tFollowers growth in social media platforms \tThis metric measures the number of new followers and compares them against the desired goal.
\nFollowers growth= new followers\/ total number of previous followers *100
\nReduce online marketing costs by 10 percent \tCustomer Acquisition Cost\tCustomer acquisition cost is a measure of the total cost of acquiring a new customer.
\nCAC= Total costs incurred in securing a new customer.
\nIncrease brand awareness and increase leads by 15 percent \tSocial Media Engagement\tThis key performance indicates how much the marketing team interacts with the fans of the organization and their products.
\nSocial Media Engagements= Comments+ Shares + Likes + Reach + Clicks
\nReduce online marketing costs by 10 percent\tLifetime value: customer acquisition cost
\n(LTV: CAC)\tThis metric is very important since it offers valuable insights into the efficiency of spending decisions in marketing by comparing the cost of acquiring a new customer against their lifetime value. Based on this metric the management can make the necessary cost-cutting measures while ensuring that the marketing drive remains efficient
\n(LTV: CAC) = Gross Margin % X (1 \/ Monthly Churn) X Average Monthly Subscription Revenue per Customer: Sales and Marketing Costs \/ New Customers Won<\/p>\n
Reference
\nKlipfolio. (2019). KPI Examples. Retrieved January 16, 2019, from https:\/\/www.klipfolio.com\/resources\/kpi-examples<\/p>\n","protected":false},"excerpt":{"rendered":"
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