Semalt: Measuring Digital KPIs Is Essential To Run A Business

What does KPI mean? KPI is an abbreviation that stands for Key Performance Indicator that is traditionally used by economists to measure how a company works and how well a business is doing. In recent years, the term has been increasingly used in digital marketing to measure market efficiency and the company's customers' journey. The following key figures are necessary for you, your management team, marketing manager, communications manager, or webmaster.

How are KPIs used by companies?

Key performance indicators are used in medium and large listed companies to improve performance and should be seen as a tool for measuring that development is moving in the right direction consistently and predictably. It is essential to use the right dimensions and commercially relevant information that can also be used in business planning. But with the multitude of tools and measures available, it can be difficult to find your way through the jungle.

You can use key figures to measure the effectiveness of digital marketing and to manage your marketing team strategically and tactically. We believe that many marketers should take a greater interest in analytics and the various KPIs, which means they can better track market investments and get employees focused on the right things.

KPIs should be based on business objectives according to who should be involved in decision making

There are several digital KPIs that you can use to measure how well a website works. It is often a matter of developing methods to increase sales or improve results in some way.
Once you know more about the amount of data and who will use it, you can start setting up experiments such as AB testing. Here different methods include visual analysis when the data material is extensive, but also traditional statistics such as correlation analysis and regression analysis to see if there is a correlation between 2 different variables.

Different types of KPIs that you can use!

KPI measurements for an online shop

ROI is ultimately based on conversions that can come from different channels: organic traffic, direct traffic, email, external websites, social media, and more.

The value of an online shop can be calculated in IT with the following formula:

B = V × C × L
KPIs are usually set monthly so that you can follow developments. For a webshop, important measures are sales, repurchases, orders, and average order value.

Other parts of a webshop are about the actual experience of the site, and the traffic and measures such as unique visitors, bounce rate, conversions, etc., are used.

KPI measures to create more leads and increase sales

When you want to measure the strength of the company and its brands

When you want to measure the performance of the website

A KPI report can be created from different systems, but sooner or later, much of the information ends up in Excel, so you can follow the results month after month.

I often see which business areas there are and see how they go by measuring segments and keywords within the business area vs competitors. Other traditional measurements are:

Use segments in Google Analytics

In Google Analytics, a very useful feature is called "segments" that allows you to see how the site works for different specific pages, languages, or mobile users.

When you want to measure the effectiveness of your digital advertising

The measurement of digital advertising varies depending on whether you are setting up a branding campaign or a site that will convert.

Conversion tracking and goal tracking can be set up in Google Analytics, and there are several different tools to measure KPIs directly for Google Ads.

The measurements to look at are:

Overall ad KPIs

KPIs to measure social media

Different KPIs to measure the efficiency of apps

Apps can be measured on what the sales tunnel looks like (funnel) and how the app works. Common measurements are:

Want to know more about digital KPIs?

There is an advantage to having an outsider do an independent KPI analysis of your digital presence. We can give you insights into how well your company's digital marketing works. We have tools where we use data from various sources such as Google Search Console, Google Analytics, competitors, and keywords. This means that you get a tailored report on how your website works. Our methods with the Dedicated Seo Dashboard ensure that the marketing department, as well as the communication department and the development department, work effectively with the company's website and SEO.

Contact us if you want to know more about KPIs for your company and what measures you can use in your it!