What is a KPI in Marketing?

A couple of decades ago, businesses that were beginning to enter the online world were not very clear about how to measure their results and only knew if they were doing well or not if they sold a lot or a little. Today this has changed and, not only can you know if you are doing well or not, but you can predict it using indicators called KPIs. It is essential to put ourselves before the situations to make the right decisions and guide our company on the right path. These indicators are to help us. In this post, we are going to show you what is a KPI in marketing, which teams exist, and which are the most effective. Join us!

What is a KPI?

A Key Performance Indicator is a way to measure whether one or more actions are achieving the proposed objectives with them. There are a large number of measurable indicators, but the key is knowing how to choose which ones are best suited to our strategy.

Advantages of using KPI’s

• Simple measurement: KPI’s offer us a simpler measurement system than that of traditional media, since the development of new technologies allows the data collected to be reliable, fast, and objective.
• Easy choice: In most cases, it is easy to recognize that KPI is the right one for a certain action. Below we will see what are the keys to differentiate a good indicator.
• Decision-making: These help us, thanks to the data they provide us, to identify failures and successes, which will help us make decisions in an organized and consistent manner.
• Determination of results: They allow us to determine positive and negative results of an action or strategy, offering us a global vision of the situation.

KPI and Metric Difference

These terms are often misleading, but they are not the same. A KPI is a relevant indicator for your company and goals, while a metric is anything measurable in a strategy. If a metric becomes important it becomes a KPI, that is, a metric can become a KPI.

The difference is based on the value they have.

How to differentiate a good KPI in marketing

• Measurement availability: This must be available so that it can be measured and analyzed at any time.
  Growth: It must show you an evolution in your business through objective results that direct you towards the goal.
• Relevance: It is of little use to us to choose a KPI that measures our followers and keep good twitter profile.if it is a social network that is not very important in our business. KPIs have to focus on what’s relevant.
• Help you choose: The data you provide us should help us make smart and decisive choices.
• Periodicity: The correct KPIs must have a periodicity to be measured within a period of time and make periodic decisions. So we will know if it works or not.

What is a KPI in Marketing : Types of KPI’s

• Primary: They are the important indicators. Those who when they go well know that the work is impeccable because they are the ones who bring you money. These KPIs are Leads, traffic, cost per lead acquisition, conversion rate, total income, or average purchase price, among others.
• Secondary: They consist of less important KPIs, but that guide you on the right path since they justify and reinforce the primary ones. Among them are newsletter or blog subscribers, blog visitors, traffic origin, or network followers.
• Practical: These can be the previous KPIs, but in a list with more indicators. The practical KPIs are established to accompany the relationship between the above. Among them, we see page rank, recurring visitors, social interactions, effective landing pages or bounce rate.

The most effective KPIs to measure your marketing strategy

Next, we are going to show you the most effective KPIs used in marketing strategies to measure results. These are the following:

• Visits to your website: Whether on a blog or an established web portal, learning to know the visits of your page will show you if you are successful or not.
• Unique visits: There may be new visitors, but they are only looking for a goal in itself. If you work in the right way, you will be able to gain knowledge of them.
• Visiting time: Something that will also determine if your content is attractive. It is useless for someone to visit your page but quickly leave it.
• Email Marketing: It is a strategy that consists of attracting all kinds of clients through emails. With this tool, you will learn to identify how many of your consumers have come through your emails. We can also set delivery, open, or click rate KPIs for more effective email marketing.
• Records: You can post a form to generate empathy with your customers. Measuring how many have filled everything will be very good to measure if your information is arriving.
• Bounce rate: Many times your content is sent in bulk, but it is bounced or rejected. Knowing your bounce rate you can plan which content is most useful.
• Followers and interactions in networks: The most important metric in your social networks, the number of followers you have and manage to generate. This is in addition to interactions such as likes or comments, although you don’t have to pay much attention to likes, because it is very common to scroll and like a publication that we have not even noticed.
• Cost per lead: It is much more important than you think. This will be what your company pays to get each potential client. It is a way of measuring how much money is coming back to you, that is, the ROI.