#1MinMarketing: What's a KPI?
New to the job as a marketing coordinator or manager? Before sending in a proposal for a marketing campaign to your boss, it would be helpful to figure out which KPIs are relevant to your campaign. Then again, what ARE KPIs?
KPI = Key Performance Indicator
These are the metrics that are used to gage whether your campaign has been successful. A marketing plan without ways to evaluate its success is incomplete. So which ones do you use for yours?
CASE STUDY: Driving Awareness
For a new brand, it is important to generate as much exposure as possible, so the relevant KPIs would be the reach, impressions, and clickthroughs to the website. For Pendulum Magazine, our target was to organically grow the Instagram community to over 600 followers in the first month, through strategic outreach and a beautifully designed profile to entice people to follow the account.
At the end of the first month, we were generating close to 2400 impressions for the Instagram profile, reached over 650 followers, and directed 25 - 35 website clicks per week from Instagram to the website.
Following our statistics on Google Analytics also showed us which types of content the readers were most interested in, which helped to refine the content strategy to include more articles in the Food and Business categories.
CASE STUDY: Driving Registrations
A client project in White Rock had 3-months to generate registrations on the website with the goal of selling out 113 luxury condominiums in the historic White Rock community. Utilizing our knowledge of Google Tools including Google Analytics, Google Search Console and Google Adwords, complemented by Facebook + Instagram ad campaigns, we drove over 200 completed registrations on the website in 3 weeks. Extrapolate these results 4-fold, our online marketing component would have driven over 800 registrations. Of course there are other channels driving registrations as well - such as direct marketing, flier marketing, print advertising, and radio advertising.
If the conversion percentage from registration to completing a condo purchase is 4-5%, that means the project would require 2260 - 2825 registrations to sell out the 113 homes. It is very helpful to figure out the potential 'sales funnel' while outlining your marketing spend - so you know how much you need at the topline to drive a desired bottom line return.
Relevant KPIs
Given our marketing objective was to drive website registrations, the relevant KPIs for the project were the number of conversions, the cost per conversion, the cost per click and the number of clickthroughs from the ads. From these stats we can also derive the percentage converted after the viewers arrived on the website.
So the next time you prepare a report to recap the performance of a campaign, make sure you are reporting on the relevant statistics, your superior will be impressed by your ability to understand what actually matters.
To see our Cultural Marketer video on this topic, visit here.
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