In marketing, the customer is your audience. Every idea, decision, or strategy is customer based. Today we live in a digital age in a digital world. For example, each day, billions of people log onto a Facebook, Twitter, or other social media account. Thus, the digital world is the largest stage to grab your audience’s attention. Businesses are learning to adapt quickly due to this arising digital culture created by the Internet, in many cases primarily by using a social media platform. Businesses are turning their marketing focus to a social-media-obsessed generation, their largest customer. The sociological impact of this, over time, has drastically changed the way that businesses look at and analyze demographics.
KPI, or key performance indicators, are tools used in an analytical process of evaluation to help a business measure its performance and resulting varying levels of success. These tools –– or indicators, a raw set of values –– when fed into systems to analyze and summarize that information, can help the company optimize their online marketing efforts in order to capture the largest audience possible and to increase their client and customer base.
Learning the basics of digital marketing, something you can do with this Udemy course, can help one better access their performance, and help find the key performance indicators necessary to evaluate their current and future success within a digital world.
Understanding KPI Marketing
The primary function of key performance indicators, and therefore KPI marketing, is performance management within businesses. The larger and more successful the business, the more often these evaluations are needed to help businesses with their optimization and to keep their success rate stable and increasing. Practically speaking, KPI marketing is a process that helps businesses to strategically develop objectives that will ultimately add value to their company.
Key Performance Indicators Specifically for Marketing
There are many KPIs that are crucial to take into consideration when it comes to the creation of basic marketing strategies (as detailed in this Udemy course), as they play into the customer analysis and research that are necessary elements of successful marketing. There are dozens and dozens of KPIS that you can consider, and not all of them will be relevant to you and your business’s needs. However, here are some to keep in mind:
- Sales Revenue: How much are you actually making through sales? Are there patterns in your sales revenue related to your marketing efforts?
- Customer Retention: All customers are important, but having customers who come to you time and time again for goods and services is a big boon.
- Marketing ROI: It costs money to make money. Be sure that you are seeing real returns on your investment when you develop your marketing plan.
- Site Traffic: How many unique visits to your site are you getting? What’s your conversion rate? These factors can be among your most important KPIs.
- Organic Search Traffic: How much of your traffic is coming through organic searches? Know this, and you will have better insight into where to direct your KPI marketing efforts.
- Social Media Reach: Social media is important – you already know that. Now, what’s the real extent of your social media reach? How many people are you really connecting with?
These are all types of KPI you may want to take into consideration when developing a KPI marketing plan. You may not use all of them, or you may use many more. To identify which specific indicators are necessary for your marketing company, one must first:
- Have a defined business plan,
- Have requirements for said business plan,
- Have a quantitative or qualitative measurement of the comparisons and results of these set goals,
- And lastly, investigate inconsistencies and resources to achieve these goals.
Once these preliminary steps are taken, you are one step closer to acquiring the correct KPIs needed to help improve the chances of success of your business. Some basic examples of uses of KPIs for marketing are new customer acquisition, demographic analysis, to understand the status of existing customers, and customer attrition.
Digital Marketing and how its Changed the KPIs
Since the 1990s and the exponential growth of the Internet and its popularity, technology has adapted by creating devices that allow portable, Internet access for anyone, anytime, anywhere. These smartphones and tablet computers have overtaken society, and thus our culture has transformed. As such, digital marketing ––sometimes referred to as “online”or “Internet”marketing ––utilizes these devices to better promote their products using the resources of digitalizing their strategies to adapt.
Thus, the KPIs no longer look the same. While the customer is still the audience, and an indicator such as new customer acquisition can still be applied, it is done through a digital lens. Not only that, but because technology moves at such a rapid pace, KPIs continually change, and at a more rapid pace than ever seen before.
One of the many ways digital marketing and its KPI has adapted is in content marketing via social media. Content marketing focuses on the sharing of media and publishing content to acquire new customers, and what better way than through the fastest growing market of social media?
This process of gaining attention through social media sites, which could lead to more website traffic, has taken the marketing world by storm. The most common KPI for this field are:
- Referrals ––pattern of how referrals to content-based landing websites respond in comparison to other landing websites;
- Social sharing ––how many shares, and the behavior of the visitor, which can be viewed primarily in their comments as many social media websites offer this;
- Engagement metrics ––bounce rates (how quickly viewers are leaving the website) vs. time spent browsing.
In this new system, learning how to market on a social media platform is critical for the evaluation of one’s marketing strategies, and such marketing tools and training are vital to understand what key performance indicators are necessary as the way one markets oneself continues to change from paper to digital. For those completely ignorant to the social media world and how to market in such an environment, Udemy offers a thorough introduction to social media marketing.
Thus, in a world dominated by tweets, liking statuses, and “Instagramming” pictures, learning the basics of digital marketing, something you can do right here on Udemy, is essential to keep a business alive and thriving. As the demographics change, so too will the key performance indicators follow suit.