Marketing KPIs (Key Performance Indicators).

Marketing KPIs, help you understand the success of your website.

Below is our top 3 digital KPIs to obsess over:

Volume:  How many people are visiting your website. Visitor growth is the fuel to grow your leads or revenue.

Conversion rate: How many people are taking action on your website.

Cost per acquisition: How much it costs (in for paid media) for each visitor to take action on your website.

The above KPIs are the topline metrics which can be applied to any website. However not all KPIs are the same. Here is a run down of why Business to Business (B2B) differs from Business to Consumer (B2C) KPIs.

The 3 Killer KPIs 

Visitors, Conversion Rate and Cost per acquisition

Visitors

Website visitors is the single Marketing KPI for understanding the growth your website has in attracting people to your website. This is different from sessions or visits, which is the total number of times each person has visited your website.

Understanding the engagement of these visitors is crucial. Using metrics such as bounce rate will help you monitor the quality of this traffic.

In general the more growth you have in visitors, the lower quality your traffic will be. Typically as you attracted newer audiences they will be less familiar with your brand and website and a higher number are likely to not engage with your website.

Conversion Rate

Conversion rate is the single Marketing KPI for defining the effectiveness of your website. It allows you to understand the number of visitors, who have arrived on your website, who have gone on to take action on your website.

Conversion rate is an easy metric to understand, however it is not helpful in understanding why there has been a drop in conversions.

For this you will need to use metrics such as bounce rate , Add to cart rate, cart completion rate or page load time. These metrics will help diagnose why there has been an increase or decrease in conversions.

Cost per Acquisition

Cost per Acquisition is the single Marketing KPI for understanding if your website is delivering revenue or leads in a cost efficient manner. Your paid traffic/visitors, will have a cost so you need to ensure this traffic is converting at the lowest cost as possible.

Typically cost per acquisition is higher when you have a lower conversion rate. Looking at the cost per acquisition by campaign will allow you to understand those which are underperforming so you can reallocate your budget.

For Ecommerce, profitable marketing is where the Average order value is more than the Cost per acquisition.

What B2B Digital Marketing KPIs should I focus on?

Your Digital B2B Marketing KPIs

Outlined are the top digital KPIs for Business to Business (B2B) organisations. In the digram we have looked at the year on year change to illustrate where the focus needs to be to drive leads.

marketing kpis
1
The total number of leads that were generated. The comparison shows an increase in leads, although this was due to the marked investment in driving new traffic to the website.
2
The amount of visitors who came to the website. Overall this has increased dramatically, most likely due to the increased investment in media (ad costs).
3
The conversion rate, those who took action on the website and became a lead. Due to big increase in traffic a drop in conversion is common. It would be best to look at if this drop was only for new visitors or those coming from paid media channels.
4
The amount of money spent on Ads driving traffic to the website. This increase has been effective at driving leads although the jump in CPA/CPL should be investigated and monitored so it does not continue to increase.

Where can I see my Business to Business (B2B) Marketing KPIs?

The screenshot is from Google Analytics to highlight where you can find each of the Marketing KPIs. In this example the KPIs are broken down by Google Ads campaign, so you can see how the performance varies, in terms of lead share vs share of visitors to your website.

marketing kpis
1
The total number of people who visited the website in a given period of time, broken down by campaign.
2
The total number of leads/actions which were performed by visitors to the website.
3
The lead conversion rate of those who took action, broken down by campaign.
4
The cost of the campaigns, which is useful to help calculate the cost per lead.
5
The list of the paid for campaigns which are being used to create leads.

How can I diagnose my B2B campaign performance?

In the graphic we took the conversion data for desktop across 3 key channels. We compared this year on year to see the change.

We were then able to also look at the website behaviours and if these impacting the conversion rate.

marketing kpis
1
The brand awareness campaign shows opportunity. The red bar (visitors) is below the green (converted leads). Although it has a high cost, there is further opportunity to invest in this campaign.
2
The Italy campaign has generated a large amount of interest, shown as blue bar. As this is higher than the red bar, there is opportunity to drive more traffic for this campaign, especially give its low cost (yellow bar).
3
This software trial campaign is the worst performer here. It had a lot of the media spend (yellow bar), but there were no conversions (no green bar). Given smaller amount of traffic (red bar), this traffic is expensive, but traffic is not converting.
4
The software webinar campaign attracted a lot of interest (red bar). It also had reasonable share of leads (green bar). It is worth investigating why this campaign didn’t get more sign ups/leads. However with the low cost (yellow bar) this campaign was very cost effective in driving traffic and leads.

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What B2C Digital Marketing KPIs should I focus on?

Your Digital B2C Marketing KPIs

Outlined are the top digital marketing KPIs for Business to Consumer (B2C) organisations. In the digram we have looked at the year on year change to illustrate where the focus needs to be to generate revenue.

marketing kpis
1
The overall revenue generated in sales from the Ecommerce website. There has been a big jump in revenue, but with a decrease in conversion rate and flat traffic. The only reason appears to be a big increase in spend per customer (RPU or Revenue per user).
2
The number of visitors to the website. In this example traffic overall is flat with a slight drop in traffic.
3
The number of visitors to the website who made a purchase. In this example there has been a drop in purchasers which is a concern, given the traffic on the website has also decreased. However this could be the case due to the increase in spend.
4
The spend on attracting visitors to the website through paid media adverts. The overall spend was down but cost per acquisition was up. This could be down to the lower conversion rate, but there is headroom to drive more traffic given the low cost per acquisition against the revenue per user (RPU).
5
The revenue per user is the total spend of an individual over a fix moment in time. The large increase in RPU is promising but this has had a big impact on conversion. Conversion rate needs to be investigated to understand if the increase in RPU was the cause.

Where can I see my Business to Consumer (B2C) Marketing KPIs?

The screenshot is from Google Analytics it shows the Marketing KPIs important for Ecommerce. This example looks at each of key metrics broken down by Google Ads campaign. This will highlight where you can see in terms of revenue share vs share of visitors.

marketing kpis
1
The list of paid campaigns from Google ads.
2
The total number of visitors who came from paid for campaigns.
3
The total number of visitors who made a purchase on the Ecommerce website.
4
The total amount of revenue generated by campaign. This will help you understand the spend per user.
5
The conversion rate for each of the campaigns, those visitors who came to the website, who then went on to make a purchase.
6
The total amount of money spend by campaign. This helps you calculate the Cost per Acquisition and therefore the marketing profitability of each campaign.

How can I diagnose my B2C campaign performance?

In the graphic we took the conversion data for desktop across 3 key channels. We compared this year on year to see the change.

We were then able to also look at the website behaviours and if these impacting the conversion rate.

marketing kpis
1
The search brand campaign has been effective at driving traffic (red bar) which has made a purchase (yellow bar) on the website. The yellow bar been bigger than the green bar shows a higher average order value too.
2
The bedroom campaign was also effective although given the volume of traffic (red bar) against the cost (teal bar) it shows this is an expensive campaign.
3
The kitchen campaigns is very effective. The very low media spend (teal bar) against the revenue generated (yellow bar) indicate there is room for further investment in this campaign.
4
The Google shopping campaign has generated revenue (yellow bar) but it need immediate investigation due to the high cost (teal bar). Look at the Cost per Acquisition (CPA) against the Revenue per user/Average order value to ensure the campaign is profitable.
5
The garden campaign has a high amount of cost (teal bar). The traffic however isn’t too expensive, given the red bar. The issue with this campaign is conversion so investigate why users are not taking action (blue bar) and then going on to make a purchase (green bar).

90 Days to higher conversions using your data

Recommended Reading

Below is some recommended content, we have picked out. This content below is focused on the Marketing KPIs above and how to learn more about the 3 killer KPIs.

Define: Website visitors – Learn the truth about what a website visitor is. Understand quickly, how to diagnose the quality of your traffic, see which sources are impacting your marketing budget and where you need to focus your effort.
Define now
Define: Conversion Rate – Read about a critical metric for measuring the number of people who take action on your website.  Learn how to diagnose conversion rate and understand how conversion rate impacts your cost per acquisition.
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Define: Cost per Acquisition (CPA) – Read about one of the most important metrics when setting your marketing budget. Understand if your website traffic is profitable  and how to diagnose the unprofitable channels.
Define now