How to Form a KPI and Evaluate the Performance of an Online Marketer?

KPI (Key Performance Indicators) – a set of key performance indicators and criteria that allow the business owner or head of the company to objectively assess the level of performance of an individual employee, department, or company as a whole.

According to the results of KPI analysis, you can adjust in the necessary direction of business strategy or plans, give a budget forecast, select the most effective tools for the advertising campaign. KPI assessment in relation to Internet marketing allows you to calculate the unprofitability and profitability of certain advertising channels, as well as the activities of the marketer and narrow specialists.

Common groups of KPIs in Internet marketing include

Targeted. Analysis of the main criteria reflecting performance and the achievement or failure to achieve marketing goals. Example: increase in sales, increase in the number of applications.

Project-related. Calculation of efficiency of each individual project. Example: dynamics of website indicators for a certain period of time, growth of the number of users in groups in social networks.

Processes. Workflow assessment, the results of which will make it possible to eliminate the factors that hinder the system. Example: % of successfully completed tasks.

What should I measure when evaluating KPI of online marketing and internet marketer?

Dynamics of traffic to a website or a landing site.

In terms of quality, traffic is divided into target and non-target traffic, and by types distinguish between organic, social, reference, direct and advertising traffic. It is necessary to understand that the increase in traffic itself does not mean a proportional increase in sales, because not every user who comes to the resource, goes to the next step – registration of purchase. The correct indicator vector: upwards, but with correction for conversion to orders.

Visibility in search engines

Reflects how highly ranked the pages of your site in search engines in Google or Yandex for search queries related to the goods or services sold. Correct indicator vector: up.

Failure rate

Some users entering your site may leave it without leaving contact details or placing an order. Understanding the reasons why this happens will help you solve this problem, eliminate errors on the site, make it more loyal to the user and increase user involvement with bundle products app. Correct indicator vector: down.

Conversion into orders or calls

The criterion reflects how efficiently the traffic is converted into purchases or offline applications. A formula is used for this purpose:

Conversion = A / B * 100%

where A is the number of orders or calls made, B is the number of visitors to the site.

If this number is constantly growing, it indicates the right direction for the Internet marketer. Increased conversion depends on improved usability and content. The correct indicator vector: up.

Average bill and revenue

This number is calculated by the formula:

Average check = A / B

where A is the total revenue, B is the number of orders.

The increase in the indicator leads to an increase in the quality of managers’ work, the emphasis on additional and repeated sales, more detailed elaboration of the website pages. Correct indicator vector: upwards.

Percentage of abandoned baskets

Indicators of problems associated with the ease of ordering and compliance with the proposed terms of payment and delivery expectations of buyers is the percentage of abandoned baskets, which is calculated by the formula:

Percentage of abandoned baskets = ((A – B) / A) * 100%

where A is the number of users who have reached the basket, B is the number of users who have ordered.

The costs of attracting one user are calculated in the same way. Correct indicator vector: down.

ROI (return on investment)

Return of funds invested in an advertising campaign is one of the most important criteria for evaluating the success of both advertising campaigns and the actions of those responsible for it.

The formula for calculation:

ROI = ((A – C) / A) * 100%

where A is advertising revenue, B is advertising costs.

The correct indicator vector: upwards. Using the ROI indicator, the business owner can objectively assess whether investments in online marketing and online advertising pay off.

Conclusions

  • At an estimation of the work of the Internet marketer or a marketing command it is impossible to consider the only conversion without taking into account receipts of the enterprise from an advertising campaign.
  • Positions in search engines and traffic growth on the site make sense only when taking into account the conversion to orders.
  • Each KPI should be presented as a specific figure that can be measured and used to continuously monitor the dynamics of the company’s development and growth.

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