July usually marks the moment when businesses review their progress towards annual goals, but 2020 turned many strategic plans upside down. At Niki Jones Agency, we’re hard at work revising our goals and day-to-day operation standards. We’re also helping our clients adapt their business strategies to today’s economy. (Watch our CEO present our Small Business “First Aid Kit” by clicking here.) To do so, we’re looking to Key Performance Indicators, or KPIs.
These metrics reveal any existing pain points in clients’ web and marketing presence. We use this data to create an action plan to boost sales, refine marketing strategies, and optimize clients’ ROI. In this way, we’re able to help our clients pivot their tactics to serve an adjusted set of strategic goals for the next six months.
This blog offers insight into popular Key Performance Indicators and explains how they measure web and marketing performance. Then we explain why KPI’s are essential to reviewing and revising business strategies. Whether you’re new to the world of KPIs or simply need a refresher, Niki Jones Agency is here to help.
An Overview of Key Performance Indicators
So, what are KPIs? KPIs are metrics collected by web analytic tools that measure a specified type of action over time. They provide crucial insight into how well your website and/or digital advertisements are performing particular tasks. These tasks vary widely and can include generating leads, delivering information, converting sales, reaching audiences, and many more.
Because KPIs are so diverse, they are grouped into three categories: acquisition metrics, engagement (or behavior) metrics, and conversion metrics. Acquisition metrics tell you who is coming to your website and how they got there. For example, did they search for your product or did they see a digital ad on social media? Engagements metrics reveal what visitors do while on your site, including what pages they viewed and how long they spent on each page. Finally, conversion metrics track how often visitors complete a designated goal, such as subscribing for a newsletter or purchasing a product.
Here are some of the most popular key performance indicators:
• Unique Visitors – The number of unique visitors to your website reflects how many individuals viewed your site in a given period of time. Unique visitors are not the same as page views. Some unique visitors might visit your web pages multiple times, but they will only be recorded as a unique visitor once. The number of unique visitors to your site indicates the success of SEO and marketing strategies.
• Bounce Rate – The bounce rate indicates how often visitors arrive to your website and leave without viewing any additional pages. If your bounce rate is high, it means visitors aren’t finding the information they want on your website. There are several possible explanations for a high bounce rate, including content organization, design, and weak SEO. By measuring the bounce rate against other KPIs, you can target which of these aspects needs improvement.
• Conversion Rate by Traffic Source – Conversion rate by traffic source indicates the number of visitors that reach your page from a specified source and complete a designated goal. Imagine you’re advertising a pair of jeans on two platforms, like Google Ads and Instagram. It would be helpful to know which platform led the most customers to buy those jeans. With that information, you could adjust your next campaign to spend more dollars advertising on the platform that yields results. This is an example of conversion rate by traffic source.
Using KPI’s to Assess Existing Techniques
As you can imagine, these small data points are a mighty resource when it comes to strategy. If your website or marketing tactics are not generating the results you want, it’s time to review your KPIs. By carefully analyzing the results, you can make a priority list of next steps necessary to reach your goal. This work is all the more important when your goals have changed over the course of the year, as many have in 2020.
In a year full of surprises, don’t let your metrics be one of them. Call us today and we’ll help you get your business back on track.