Marketing Mistake 6: Not Knowing Important Digital Marketing KPIs

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

Important digital marketing KPIs

But before I tell you what metrics to track, I’m going to talk about the metrics NOT to track. This is called vanity metrics. Simply put, vanity metrics are all the metrics 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 metrics 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 certainly are because these metrics actually act as social proof. When someone comes to your social media profile or website and sees how many people are recommending you or saying good things about you, of course they will want to do business with you. But as a business, that’s not what you should be focusing on. These metrics are actually the result of what you do in your marketing. If you market your business well and provide great service or product to your customers, you will automatically get those great reviews.

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

Let’s say your campaign objective is ‘brand awareness’. Next, the first metric you should measure for this campaign is reach, which is how many people have seen your campaign. Remember 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 awareness of your brand. Another way to measure your brand awareness is to look at views. Views can come from a web page or social media post. If your brand awareness marketing campaign is actually an offline campaign – perhaps you set up a booth at an exhibition – then the number of visits to your booth would be a measure of brand awareness.

The next objective, which requires a little more commitment from your customer, is the ‘objective of interest’. This is where you want your customers to start personally engaging with you. Any interest-based marketing campaign should be measured against these metrics. Common metrics of interest are leads, signups, subscriptions, downloads, and more. Anything that requires a potential customer to take action and give you their contact information counts as an interest goal.

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

Break down KPIs

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

All of those lenses I talked about are actually your macro lenses. These are your larger goals that you want your business to achieve. But each of these goals is defined by smaller actions a client would take to achieve that goal. So when looking at your macro lens, make sure you’re looking at the smaller measurements as well. These smaller metrics will help you identify the weak 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 conversion metrics, you’re obviously counting the number of sales on that side. But what if you get no sales? How to optimize the marketing campaign so that it translates into sales? This is where your smaller measurements come in. One way to break this down into smaller metrics is to look at how many people have come to your website. Obviously, if there aren’t enough people visiting your website, you won’t have enough to convert. You can check out my previous ,Blog learn how to compare conversions for any campaign.

  • To get X number of sales, you need to recalculate and say how many people you need to bring to your website. Thus, the budget becomes an opportunity for improvement.
  • The second thing you might look at is the number of people who came to your website, but then left the website after viewing just one page. Examining this data will tell you which pages are performing poorly. Maybe there are certain pages that people visit and then they leave because they don’t understand what you’re trying to get them to do. Maybe there are pages that are doing really well and people are going to the next page and maybe going to a sale from that page. You can review your data and decide which pages are performing the best. And if you know you can get the top performing pages in front of people visiting your site.
  • The third you can look at is the number of people who added a product to their cart but left. If you look at this data, you may be able to identify a trend. Maybe people add one product more than others and abandon the cart after adding that product. You need 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 indicate that the people in your Facebook ads aren’t quite 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 big metric by focusing on the smaller metrics that contribute to it.

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