What Are KPIs And How to Use Them To Measure Success.

To measure the performance of your digital marketing campaigns at each stage of the funnel, you need to use different KPIs that reflect the specific goals and outcomes of each stage. Here are some examples of the most common and relevant KPIs for each stage of the marketing funnel:

Awareness stage

The awareness stage is where you attract potential customers to your brand, product, or service. You want to increase your visibility, reach, and recognition in the market. The KPIs for this stage include:

• Website traffic: The number of visitors to your website from different sources, such as organic search, social media, email, paid ads, etc.
• Impressions: The number of times your content or ad is displayed on a web page or platform.
• Click-through rate (CTR): The percentage of people who click on your content or ad after seeing it.
• Social media followers: The number of people who follow your social media accounts or pages.
• Social media engagement: The number of likes, comments, shares, retweets, etc. that your social media posts receive.

Interest stage

The interest stage is where you generate leads and prospects who show interest in your brand, product, or service. You want to capture their contact information, such as email address or phone number, and nurture them with relevant and valuable content. The KPIs for this stage include:

• Leads: The number of people who provide their contact information in exchange for something of value, such as a free trial, ebook, webinar, etc.
• Lead quality: The degree of fit between your leads and your ideal customer profile, based on criteria such as demographics, behavior, needs, etc.
• Lead conversion rate: The percentage of leads who move to the next stage of the funnel after receiving your content or offer.
• Email open rate: The percentage of people who open your email after receiving it.
• Email click rate: The percentage of people who click on a link or call to action in your email.

Desire stage

The desire stage is where you persuade and convince your prospects to buy your product or service. You want to showcase the benefits and features of your product or service, address their pain points and objections, and create a sense of urgency and scarcity. The KPIs for this stage include:

• Sales qualified leads (SQL): The number of leads who are ready to buy or talk to a sales representative.
• Sales conversion rate: The percentage of SQL who become customers after receiving a sales pitch or proposal.
• Average order value (AOV): The average amount of money that customers spend per purchase.
• Customer lifetime value (CLV): The estimated total amount of money that customers will spend with your business over their lifetime.
• Customer acquisition cost (CAC): The average amount of money that you spend to acquire one customer.

Action stage

The action stage is where you close the deal and make the sale. You want to finalize the transaction, deliver the product or service, and collect the payment. The KPIs for this stage include:

• Revenue: The total amount of money that you generate from sales.
• Profit: The difference between revenue and expenses.
• Return on Advertising Spent (ROAS)
• Return on investment (ROI): The ratio of profit to investment.
• LTV/CAC: This ratio is a strong indicator of profitability.
• Customer retention rate: The percentage of customers who continue to buy from you over a period of time.
• Customer satisfaction rate: The percentage of customers who express satisfaction with your product or service.

How to use KPIs in digital marketing campaigns effectively

Now that you know what KPIs to use for each stage of the marketing funnel, how do you use them effectively in your digital marketing campaigns? Here are some tips and best practices to follow:

• Set SMART goals: SMART stands for specific, measurable, achievable, relevant, and time-bound. Your goals should be clear, quantifiable, realistic, aligned with your business objectives, and have a deadline.
• Choose the right KPIs: Not all KPIs are equally important or relevant for your digital marketing campaigns. You should select the ones that match your goals, target audience, and marketing channels. You should also prioritize the ones that have a direct impact on your bottom line, such as revenue, profit, and ROI.
• Track and analyze your KPIs: You should use tools and platforms that can help you track and analyze your KPIs accurately and consistently. For example, you can use Google Analytics to measure your website traffic, impressions, CTR, leads, conversions, etc. You can use social media analytics tools to measure your social media followers, engagement, etc. You can use email marketing software to measure your email open rate, click rate, etc.
• Report and communicate your KPIs: You should create and share reports that summarize and visualize your KPIs in a clear and concise way. You should also communicate your KPIs to your stakeholders, such as your team members, managers, clients, etc. You should explain what the KPIs mean, why they matter, and what actions you are taking to improve them.
• Optimize and improve your KPIs: You should constantly monitor and evaluate your KPIs and compare them with your goals and benchmarks. You should identify the gaps and opportunities for improvement and optimization. You should also test and experiment with different strategies, tactics, and channels to see what works best for your digital marketing campaigns.

Conclusion

KPIs are essential for measuring the success of your digital marketing campaigns. They help you track and analyze the performance of your marketing efforts at each stage of the marketing funnel. They also help you set SMART goals, choose the right strategies and tactics, optimize your budget and resources, improve your customer satisfaction and loyalty, and enhance your brand awareness and reputation.

By using the tips and best practices here presented, you can use KPIs in digital marketing campaigns effectively and efficiently.

Happy marketing! 😊