Different KPIs are used to track the effectiveness of business based on different situations. But why it is important to measure KPI for the digital marketing strategy?

Before exploring the answer, first, let us know about KPI. The Key performance indicator is a quantifiable value that signifies the effectiveness of the organization in achieving its key business objectives.

According to Investopedia [1] “Key performance indicators are the set of quantifiable measurements for gauging the organization’s overall long-term performance”. Some marketers always follow the KPIs which are known to be the best for measuring and got frustrated by the results. Following the same so-called, best rules, doesn’t bore fruit for all the organizations. Let us explore the digital marketing KPIs and their effectiveness.

KPI for Digital Marketing

Returning back to the question, Digital marketing is the major type of marketing which thrives on the proper use of KPIs because of its quantifiable nature. The results of all the campaigns can be seen in numbers and return on investment can be easily quantified, which make digital marketing more unique from all other traditional marketing techniques.

Before jumping into the best KPIs, the initial aspect, every marketer must consider is, to assure that selected metric must satisfy at least any one of the following aspects

  • It must align with the goals of the organization
  • It must be the leading indicator of success.

Some of these indicators may be channel-specific, for example, for a PPC campaign, cost per acquisition is the primary indicator, while for Social campaigns, conversions are the primary indicator. And, some key performance indicators also relate to the overall business goals.

Let us explore the 5 best KPIs for Digital marketing strategy which must be measured for a better understanding of your results. However, these 5 are equally important and are not sorted in any basis.

1. Conversion Rate from Landing Pages

We must not measure the whole website as our goal is to make conversions only from the landing page. What are the conversions?

  • A person signing up the form in your landing page
  • Subscribing a newsletter of your site from your landing page
  • Opting for a free trial of your product.

All these are considered as conversions. But the expected conversion rate must be determined based on the toughness of the process. Subscribing a newsletter can get more conversions than signing up for a free trial with credit card details.


Source: heap.io

So, the landing page conversion rates must be measured based on the level of commitment expected from the user. It also differs based on the campaign types. The above figure shows the example of step by step sign up page (landing page) conversion rate. For organic search results, we can expect an average conversion while for a paid search ad we can expect higher conversion rates.

2. Conversion Rate from Mobile traffic

As per the study, researched and released by ComScore, USA [3], the majority of users uses mobile phones to access websites. It naturally drives us consider mobile traffic as an important KPI. Mobile traffic conversions may be a little bit difficult to understand initially. But when a site is properly optimized for mobile, the conversion rate will eventually increase with an increase in visitors count.

Even, Google is taking various steps for making sites mobile friendly with mobile-friendly update [4], which ranks mobile-friendly sites higher in its search engine. So, understanding and optimizing the site to be mobile friendly and measuring the results frequently becomes more important.

3. Performance of Social media

Social media becomes the major source of lead for marketers. Though there is a fleet of competitor’s posts which makes our post last only for a limited time, the conversion rates and effectiveness are never sacrificed. In social media, there are few important KPIs, a digital marketer must track.

Tracking likes, comments, retweets and share are important and becomes usual, but other major indicators such as tracking the site’s traffic generated from social media, tracking traffic from different social media and their conversion rates play an important role in assessing the effectiveness. Every marketer must measure these indicators when rolling out campaigns in social media.

4. Customer Acquisition Cost

A business must look at the cost of acquiring the customer after every campaign. Customer acquisition cost is the cost incurred by the organization to acquire a single customer.

5. The lifetime value of customer

Without customer lifetime value, customer acquisition value cannot be completely measured. Customer lifetime value is the value of revenue generated from a customer for an extended period of time, that is value provided by the customer to the organization in his lifetime.

Example, if a customer pays INR 100 every year on a subscription for 5 years and the cost of acquiring the customer is INR 50, then the lifetime value is INR 450. It differs in different scenarios. If a customer buys a product once, and there is no recurring cost, then more conversions are needed. While for a recurring product, less conversion rate will work.

So, understanding and using these KPIs wisely will make your digital marketing more effective. These are not the only KPIs to be concentrated to determine your campaign success. But, without these, one cannot conclude the effectiveness of their campaign.


Hope this post is useful in knowing about the best KPIs to be considered for your digital marketing campaign. Feel free to post your views on the comment.

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