How to set digital marketing KPIs, make them SMART KPIs and align your KPIs with the RACE planning model
Digital Marketing KPIs or Key Performance Indicators are quantifiable goals which help you to track and measure success. KPIs are a useful way for Digital Marketers to set expectations and prove that their work is having a positive impact. To outsiders, the success of digital marketing activity can be seen as difficult to measure but this really isn’t the case. In fact, it’s normally easier to measure progress for a digital campaign than an offline one.
The aim of this post is to help you set digital marketing KPIs to measure what really matters in a way which all parties can agree on. We’ll cover negotiating KPIs and how to tie your KPIs into the Smart Insights RACE model.
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From SMART to SMARTER marketing objectives
When identifying specific marketing objectives to support your long-term goals, it is common practice to apply the widely used SMART mnemonic. You will know that SMART is used to assess the suitability of objectives set to drive different strategies or the improvement of the full range of business processes.
One of the main reasons that we called our site and service SMART Insights is because we wanted to help marketers succeed through using a more structured approach to planning to give more realistic targets they could be more confident of achieving. Using SMART objectives and then measuring them through properly customised analytics reports is a big part of how we hope to help too.
With SMART objectives documented in Plans linking objectives to strategies and KPIs everyone is sure exactly what the target is, progress towards it can be quickly and regularly reviewed, for example…
A case study example of applying the Smart Insights RACE framework to measure customer engagement and marketing success
You probably already use—or at least have thought about using—some form of marketing dashboard to track and manage your analog and digital marketing KPIs (Key Performance Indicators). But how has it impacted your decision-making ability concerning customer engagement? And do you effectively leverage that data to help you manage all the most important marketing factors that drive success for your organization?
I subscribe to the basic premise behind the Smart Insights RACE (Reach, Act, Convert, Engage) framework for organizing and tracking digital marketing KPIs as they relate to customer engagement, but I’ve expanded it to include analog marketing activities as well.
[Editor's note: Since Kent Huffman wrote this post, Smart Insights have created a RACE dashboard based on Google Analytics to automatically…
Chart of the Day: An example of the 'Critical few' KPIs
To coincide with the release of an enhancement to our RACE digital marketing dashboard, today's Chart of the Day isn't published research around digital marketing. Instead, it's what I think is a nice, practical example of achieving focus through a marketing dashboard:
The visual dashboard above is a well-known dashboard example, taken from the well-regarded source of sharing approaches to managing Digital Business - the UK government's digital service.
Their article explains that when they're building a digital-by-default service like Carer’s Allowance, their team is continuously designing, testing and releasing changes to the live service to improve it and better meet user needs against critical KPIs of which standard usability measures like completion rate, user satisfaction and time to complete are…
You may be focusing on the wrong metrics and missing the most important KPIs
As a digital marketing professional, you may have once expected that your job would involve a lot of creativity – you’d spend your days creating innovative advertisements, writing engaging copy, maybe even crafting catchy memes. And of course, you do work on these tasks, but unless your company has a committed marketing analytics professional on staff, you also likely spend much of your day surrounded by numbers, working hard to assess the effectiveness of your campaigns. All those numbers, taken together, are known as Key Performance Indicators (KPIs).
Unfortunately, sometimes the numbers piling up on your desk indicate that your marketing strategy isn’t working out as well as you’d hoped. That’s when it’s time to take your ad campaigns and KPIs back to the drawing board.
Here are a few analytics strategies you can try to kick start your…
Think beyond views when measuring the impact of your brand videos
Sometimes 'Brand Awareness' gets a bad press as an indicator of marketing effectiveness. It's easy to see why, after all, just because I'm aware of your brand, it doesn't mean your marketing has been all that successful in driving demand or sales for a product. To give a trite example, I'm aware of Donald Trump, North Korea and Protein World. It doesn't mean I like any of them. Nor does it mean I'd ever buy from them. Oh and before you say 'You can't buy from North Korea Rob you idiot'- I think you'll find you can.
Of course, this doesn't mean that boosting brand awareness is pointless, far from it, it simply means it is only the first step on the journey to a sale. Generally speaking, your audience will either be unfamiliar with a product, on the fence about…
10 steps to Actionable Analytics which fuel online business growth
At Smart Insights we believe that the power of Digital Analytics and insight like that provided through Google Analytics isn't fully exploited in many organisations. To help encourage more use of Analytics our new Actionable Analytics Slideshare steps you through the potential pitfalls and the options to make more use of analytics through setting goals and setting up an improvement programme for Digital Marketing Optimization.
In this post we summarise a series of actionable steps to boost the effectiveness of always-on digital marketing and campaigns. We're not saying this is easy, far from it. In a big organisation decisions taken at the boardroom based on limited data and insight is often a huge number of steps away from the people at the proverbial ‘coalface’.
A company exists to generate profit. Profits come from sales. Sales are increased via marketing. Marketing can…
Focussing on the wrong metrics can be a distraction and a waste of time but there are ways to keep your focus and make measurement worthwhile
When it comes to marketing metrics, do you ever feel like you’re chasing the wind? In the case of false metrics, that’s exactly what you are doing.
False metrics are the metrics that distract you from the metrics that really matter. They’re likely to be everyday KPIs, but they don’t really have an impact on the bottom line.
In the world of marketing, false metrics appear all too often and it is commonplace to hear about the wrong metrics being measured and reported.
Examples of the wrong metrics would be:
Chasing Facebook ‘likes’ or Twitter followers
Looking at social media reach
Undertaking an SEO campaign in order to increase traffic to your website.
There is a tendency to just gauge what…
Separating ROI from data noise
Learn what metrics can help you truly understand the value of your spend, and what technologies really deliver on this most important metric.
Small-to-medium businesses are investing in their marketing at jaw-dropping new levels. BIA/Kelsey predicts that 2015 will be a banner year for local media expenditure on the part of these organizations, with investment exceeding $50 billion. Digital investments are at the forefront, with 28% of marketers reducing their traditional advertising budget to fund more digital marketing and search marketing capturing the largest share of online spend at 47%, according to Business2Community. But with so many dollars on the line, how can a business know what investments are really paying off?
Return on Investment is the gold standard that today’s marketers are seeking. But with each new media channel, there is new complexity in the metrics…
8 steps showing how to combine SMART and RACE to set campaign goals
SMART goals are a commonly referenced concept in marketing, to help check that goals are Specific, Measurable, Actionable, Realistic and Time bound (i.e. have a deadline). Goals have their place at all levels of planning whether business planing, marketing planning or campaign planning. It can often be the difference between a successful campaign and not. As my previous post on goal-setting for marketing showed, they have huge benefits in:
Empowering, aligning and focusing teams and colleagues
Managing senior management
Giving you and your team a sense of success
Allow you to understand a campaign within a wider marketing activity context
But in practice, it's not easy to select and set goals, they are very rarely obvious especially when you put them against the SMART test. Setting goals requires a numbers of thing's…