Most business owners know they need to analyse their AdWords and Analytics, but normally they choose the wrong ‘key performance indicators’, and end up measuring rainfall with a thermometer (or the digital equivalent).
The challenge is that there is such a range of measures, it can lead to confusion as you can’t necessarily choose them all. For most businesses there are just two or three main KPIs and the rest, whilst useful, are of much less relevance and importance.
Here are some recent examples of KPI and performance measure confusion…
We were in a meeting recently with a business which generates high value leads through it’s website, however no one in the business really understood which metrics were important and seemingly wanted every metric to improve.
The conversation was centred on bounce rate, time on site and traffic volumes. There was little or no interest in quality of traffic, sources and conversion rate – which are the most important KPIs for this type of business.
Predictably the new direction will probably have the opposite result as their focus drifts from a conversion-led dynamic.
Recently, we pitched a publisher with an advertising model based on sponsorship and advertising impressions. The model is completely reliant on visitor numbers in order to achieve revenues.
Yet, for some inexplicable reason, they were focused on enquiries (for advertising opportunities as well as end users), rather than page impressions, or unique and repeat visitors – but these are the only metrics which directly correlating to and affect their income opportunity.
This lack of focus means they are spending too much energy creating buyers without working on having enough ‘space’ to buy. It’s rather like selling ad space in a one-page magazine!
We also recently advised an ecommerce website. They were measuring their sales, which was a great start, but were not being granular enough about it as they were only measuring spend, without taking into account profit margin.
We discovered that about one third of their orders amounted to 75% of the profit yet, when we looked at their marketing: search as well as email, we realised that they were spending most heavily on low margin products.
With a few tweaks, they’re suddenly much more profitable and at very little additional cost.
One of our bug-bears is the homogenisation of digital marketing. Too many digital agencies apply the same mechanics to all of their clients, regardless of product, price, place and promotion and too many businesses with in-house team don’t focus hard enough on what really matters.
So, if you’ve got your KPIs in a twist – get in touch and we’ll untangle them.
Driving traffic with no clear understanding of revenues or profitability
Intent led, tracked and accounted for profitable marketing spend
An unsteady flow of low-quality enquiries yielding little business
Motivated enquiries, in the buying cycle, who fit your ideal target market
Business critical tasks relying on staff time, subject to user error
Make processes more efficient, thorough, predictable and measurable
I spend most of my development budget fixing errors and bugs
Fast and reliable cash-generative e-commerce and lead generation websites
My organic traffic is not translating to the bottom line
Rankings with purpose, targeting your converting keywords
Dated branding which doesn’t match the quality of your business
Modern, digital, flexible brand, guidelines, messaging and identity
Low resolution homebrew quality with little impact
Short, sharp videos designed specifically for the right media channel
Marketing visuals that fail to engage your audiences
Smart, precise imagery demonstrating design with purpose
Lack of regular contact with previous customers and clients
A clearly segmented customer base with fine-tuned strategies for repeat business
I have analytics, but it doesn’t help with our decision-making
A connected analytics layer providing confidence in tactical and strategic marketing work
Vaguely written aggregated words with little meaning
Refined, considered and targeted persuasive copy with calls to action
Finding it a challenge to come up with quality ideas and engagement
Well-considered, precise, relatable and polished content
Occasional ad-hoc generic email communications
Focused varied marketing content, adapted to suit customer profiles
A store where most of your budget fixing bugs and maintaining
A store where the stock, turnover, margins and yield dwarfs the marketing spend
Leads and customers are mainly in spreadsheets and inboxes
Win and retain more business by selecting the right CRM and systems