The world is proceeding toward a digital revolution. It has solved a lot of our problems and your day-to-day business and personal activities. If we look at just some of the digital platforms, till January 2020, there were approximately 1.2 Billion Websites in the world, the number of people estimated to be on social media is 3.6 Billion, and the number of email users was said to be 3.9 Billion. To put these numbers into perspective and for people to better understand the significance, there are approximately 7.8 Billion people in the world, which would tell you how high a percentage of people use each of these digital platforms and digital marketing strategies for expanding their business.
Having established those facts and the number of people you will find using these digital platforms, there is not that companies and businesses are moving towards and investing in the efforts to market their products and services by digital means, rather than just conventional means. There should not be any question that digital marketing strategies have the potential to boost your business and allow you to reach the right consumer. Still, the question remains, what kind of strategies will satisfy your business needs? It will help if you have a method or a way to track down and analyze whether a certain strategy is working for you or not.
This is where the key performance indicators (KPIs) come in. KPIs are basically the milestones or goals that can be used to assess performance and tell ourselves whether or not we are doing something right or wrong. This will allow a digital marketer to not only analyze the current progress but also forecast future developments by identifying the trend. The KPIs can also allow us to figure out whether you are headed in the right direction in terms of strategy or not. This will help you in deciding if you need to change your approach or not. This sort of forecasting and analysis can be done by achieved by a digital strategy agency that is known for providing services like these.
After emphasizing how important the KPIs can be for ensuring that a company reaches more and more levels of success, the question would be, how will you choose which KPI is suitable for you, and are likely you assist your business to prosper? It would be more effective if the KPIs you select were specific and to the point, rather than something just up in the air. Also, the people who are setting the KPIs need to be certain that they are achievable in the time that is specified. Most companies go for a long-term KPIs strategy that would require them to wait for the outcome. Some tend to choose short-term KPIs in order to a relatively quicker outcome.
For digital marketing, in particular, their job is to expand their business to a large audience to see. Most of the KPIs can be tracked down by using several available tools. What needs to be understood is that can do means should. Not all the KPIs are worth chasing and investing your time, and a good digital marketer prioritizes his or her KPI and focuses on achieving it.
Some of the factors that would be worth keeping in mind when coming up with your own KPIs may help you achieve the goal that you expect from a digital marketer.
Performance during hard times:
It does not really matter if your business is on a small or large scale; when a crisis hits the market, you will most likely be affected. For some, that impact may vary for different businesses. An apt example, of living through 2020, is COVID-19. Almost all businesses around the world have been affected in this unprecedented time. When a company was aiming for certain progress in normal time, it should be happy if they get more than half of that. You need to rethink your KPIs with respect to the market situation around you. You cannot aim for too high, nor can it be too low. It would not be the most professional thing to do if you use COVID-19 as an excuse for not achieving a certain KPI.
Return on investment:
The number of engagements on your digital platform is all well and good, and that is just the first part of the job that your company expects from you as a digital marketer. The second part of the company’s job would be expecting you to turn those engagements into leads. For this, you are required to deep analysis of how much of the engagement is converting into leads and set your KPI accordingly. One way of doing it is to imagine yourself in your target audience’s shoes and set your marketing strategy accordingly to ensure that you fulfill a certain KPI.
The number of engagements on your digital platform is all well and good, and that is just the first part of the job that your company is expecting from you as a digital marketing strategy. The second part of the job that the company would be expecting you to do is turn to turn those engagements into leads. For this, you are required to do a deep analysis of how much of the engagement is converting into leads and set your KPI accordingly. One way of doing it is to imagine yourself in your target audience’s shoes and set your marketing strategy according to what you would like to see as the consumer.
You might be doing a very good digital marketing strategy, but you can only do so much. The strategies of search engine optimization and some other factors are not in your hands. If you believe a certain KPI will prove beneficial for you, give it time to show results. You cannot judge the efficiency of a KPI too early that you change it, nor can you linger on with it too much that your business has sustained a significant loss. In terms of a digital marketing campaign, suppose, you are doing an SEO and targeting a specific keyword. If those keywords are not bringing traffic to your platform, you can continue with it for a specific time before changing your strategy and adjusting your KPI accordingly.
When it comes to setting up a KPI, there is no right or wrong method for it. A KPI that is good for one company does not mean that the same KPI will do wonders for the other company as well. We have already talked about the fact that each company has its own business model and mission that they operate by. Apart from that, a company size in terms of employees and the time they have been running the business. What is commonly seen is that the bigger companies spend a lot of effort analyzing the competition in the industry and setting KPIs for how they can get ahead of them. As far as most start-ups are concerned, they look to make a name for themselves, and the initial KPIs that they set are for the objective to progress in the industry, rather than aiming to go ahead of an established company. To achieve both KPIs for the smaller and bigger industry, you need to have a solid digital marketing strategy to appear in the right consumers’ eyes and analyze what your competitors in the industries are up to.