5 KPIs Small Brands Must Know for Digital Success

Each brand has unique business goals, such as increasing revenue or traffic. But how do you measure that in a metric? 

By definition, a KPI (Key Performance Indicator) is a measurable value that marketers use to evaluate success across all marketing channels. 

KPI metrics must align with your business goal. For example, let’s say your goal is to increase revenue, so an aligning KPI metric is the shopping cart conversion rate.

Let’s take a look at some important KPI metrics to help achieve your business goals. 

KPI Metrics:

1. Traffic

Without traffic, there are no clicks! Traffic measures the number of people that land on a website. They can come from search engine traffic or marketing activities such as email, paid ads or social media. Traffic is like a gift that keeps on giving. But once those consumers land on your site, what are the next steps?

2. CTR (Click Through Rate) 

CTR is when consumers click through on an item. Consumers can click through on a website, ad, social media link or email. CTR helps online brands measure the rate at which consumers click through on a specific item. This metric is great for pre-conversion statistics. 

3. Conversion Rates

Without conversion, there is no revenue. The conversion rate is the number of visitors that complete a desired task, such as making a purchase or signing up for a mailing list. It calculates the number of conversions divided by the total number of visitors. The higher the conversion, the better. Across industries, the average landing page conversion rate is 2.35%, but the top companies convert at 5% or higher. It’s important to find out the ideal conversion rate for your particular industry. 

4. Bounce Rate

Bounce rate is a great way to find out what you need to fix online, where exactly consumers are being turned off when they visit your website. You can learn if your website’s homepage, product page or checkout process needs updating. To calculate the bounce rate, divide the number of total site visitors by those that only visit one page. Then multiply by 100. The lower the result, the better. Bounce rate is a key metric to optimize the customer’s digital experience.

5. CPC (Cost Per Click)

Cost per click helps brands decipher how much it costs to gain B2B consumers with “cost per acquisition” and B2C consumers with “cost per conversion”. The indicates how much money you must spend to acquire or convert a new customer.

To calculate cost per acquisition, take the total amount spent to attract new customers via a specific channel, and divide it by the number of new customers gained. You can also find out exactly how much each lead costs with average cost per lead. This varies among industries, so it is worth finding out the average cost in your specific market. To calculate cost per lead, take the amount of money spent on a campaign, and divide it by the number of leads generated. In B2C, cost per conversion is vital for brands to know how much spending is needed to successfully convert each customer.

Now that you’re knowledgeable about various KPI metrics you can use them to measure your brand’s online success. If you keep track of these KPI metrics and work on improving them, it will most definitely help you get a leading edge over competitors.

At The Hyacinth Group, we help brands reach their business goals with digital marketing strategies that improve KPI metrics, such as SEO writing, paid ads, email marketing campaigns and conversion rate optimization. Schedule your free quote today and let us help your brand grow!