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The Key Performance Indicators

Whenever a display campaign is published, an SEO optimization activity is carried out, advertising via keyword advertising, a newsletter or a DEM is sent or any other form of promotion is used, it is essential to establish if and how successful they have been: each promotion is in fact an investment , which must correspond to a growth greater than the cost incurred.

What is results?

Many marketing managers, still accustomed to offline, limit themselves to evaluating the increase in sales or at most of the newsletter subscriptions, without taking into account that multiple values ​​can be taken into consideration and can influence the result.

One of the greatest advantages of the web compared to offline markets is measurability : it is possible to measure, calculate and compare almost everything, down to the particular single user, privacy permitting.
Very often online businesses that are struggling to take off have all the right ingredients, but present obstacles that prevent their success. Discovering these obstacles is the first step necessary to be able to eliminate them and thus unlock the true potential of the site.
To obtain reliable data on which to base your business decisions it is necessary to operate in a scientific way . The first step is to establish KPIs (Key Performance Indicators) that act as objective reference parameters.

Define the parameters of the analysis

It is clear that increasing the traffic that lands on the home page is generally a positive factor, but the increase in traffic alone is not a KPI, a key performance indicator. If traffic does not imply conversion into sales, then it is necessary to look beyond the surface and deepen the reflection. KPI performance indicators must be linked to the result of the business, to the conversions .

A KPI could then be defined for example as the conversion percentage of the purchase page, or the number of users registered for the newsletter who visit a specific page with some offers reserved for them. These KPIs are based on differential analyzes (from the current performance levels you are in and where you want to be), which provide valuable information on the effectiveness of the campaigns.

It is clear that it is not possible to establish the best KPI a priori , nor to indicate an exhaustive list: the choice of KPI depends on the particular business model, and on the strategy to be implemented. The best KPI is, from time to time, the one that provides the most complete picture possible of the situation, according to the objectives to be achieved.

Multiple parameters can be taken into account when defining a KPI for your campaign:

  • the time spent on a page or overall on the site
  • the number of page views
  • the depth of the visit
  • keywords or referrer sites
  • the bounce rate
  • user recency
  • the conversion rate of the confirmation page
  • etc…

These and other elements allow you to create indicators to improve performance. The real value of the KPI lies in the ability to represent the real situation, to summarize the overall effectiveness of an action in a numerical value. Managing the business without these data is like driving blindly, hoping to get to your destination in some way: you are destined to always repeat the same mistakes, which you didn't realize, always getting the same results.

Sources:

  • Web Analytics Association
  • The Importance of (KPIs) Key Performance Indicators for SEO
  • Key performance indicator

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