Within digital marketing, numbers and three-letter acronyms spread faster than Twitter spam. “How to increase your CTR”, “Why you must work with BIG DATA!” Often it is a lot of hot air and little substance when someone claims they can increase your conversion rate by 200 percent. But now you’re in luck because Spoon distribution director, Björn Jansson will tell you which are the world’s best marketing KPIs – straight up.
Most companies have probably come across the concept of KPIs (Key Performance Indicators), i.e. numbers that actually tell you how your marketing is working. Almost 15 years ago, Google Analytics was released and web analysis suddenly became “free”, and above all did not require programming skills in Perl or COBOL. We started measuring web visitors and throwing around terms like “bounce rate”.
Today, all marketing departments with any self-respect have a more or less detailed KPI document. At the start of each month, Swedish marketing departments spend several hours compiling reports together. Does it sound familiar? How good do you think your KPIs are? (Calm down, I’ll tell you which are the world’s best marketing KPIs soon, I promise!)
The bad and the ugly
A bad KPI is one that can be manipulated into a better result. Such as web visitors. Anyone can increase traffic to their site by thousands of percentage points through ads that promise more than they can deliver. The traffic will be completely irrelevant since visitors will leave the site within five seconds – but the “site visitor” KPI will still go up.
Or video views on Facebook. Again, open your wallet and the numbers will soar. The lowest cost we have had per video view on Facebook is 0.009 Swedish öre. We spent almost SEK 2,700 and received over 31 million views. Sure, there are times when such cheap mass exposure can be justified, but in terms of business, to say that this is very rarely about reaching the target groups that align with the business plan is an understatement.
The problem with these examples of KPIs is that they are not complete, because they do not measure what you really want to achieve. Feel free to count website visitors, but don’t stop there. What should they do on the site? Should they do something other than just look at the page? Leave their email address? Read a blog post? Buy a… pair of gloves? Instead, look at where your best visitors are coming from, and increase your marketing accordingly.
These are the world’s best KPIs: those based on a clear purpose and an even clearer goal. You can trick people into clicking on your site, but you can’t trick them into buying a pair of gloves.
Think one step ahead when selecting your KPIs. When analysing how videos perform on Facebook, we usually look at the following parameters:
- How many of those exposed to the film watched at least three seconds? (This figure tells you how good the film is).
- How many of those who watched at least three seconds, went on to watch at least 75 percent of the movie? (This figure tells you how good engaging the film is.)
- How many saw at least 75 percent of the movie? This figure tells how many people have actually seen most of the movie, instead of just looking at the number of video views. If you are really thorough, you can look through the movie clip and go through what key points you are exposed to during that 75 percent. Then, instead of saying that “we had 200,000 views”, you can say that “27,000 people have learned that our product A has the characteristics B, C and D”.
Look at your current KPIs. What do they say about how you really perform? My favourite KPI to challenge is “followers on Facebook” which some people chase so frantically. But what are you going to do with them really?
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