Launching a new digital marketing campaign involves taking a lot of details into account. Among them, it is necessary to define the metrics that you will use to measure your results. After all, what is not measured cannot be improved! Therefore, in this note we are going to tell you which are the KPI’s that cannot be missing in your business, including the CTR marketing and all those that are an essential part of the buyer’s journey.
With the growing number of digital channels that businesses have access to, it can be difficult to navigate the sea of available data. What to look at Where to keep an eye on how our marketing efforts are performing?
The key to all of this are the well-known KPI’s. Of English Key Performance Indicators , these are the key performance indicators for our marketing campaigns .
These are essential metrics to know how the different actions implemented in a business worked , in relation to the proposed objective.
In this sense, indicators make it possible to transform data into actionable information.. What at the same time provides very precise insights on the behavior of a campaign and users in relation to the actions that the company proposed.
Now, what are the most important metrics for a business? These are directly related to your goals. For this reason, the same indicators will not be used in all cases. But nevertheless, If we talk about the essential KPIs, we cannot fail to highlight: CTR marketing, CAC, CPC and CPM.
In this note, we will tell you what allows each of these KPIs to be measured. But before that, let’s find out the importance of the Customer Journey or customer journey in choosing these metrics.
The appropriate KPI’s in relation to the Customer Journey
When planning your marketing actions, it is essential to establish objectives for each campaign. This will provide you with a better understanding of the metrics to use to measure your results.
For this, it may be interesting to consider the main stages of the Customer Journey .. In other words, the instances that it goes through on the way to purchase.
In general, four stages are distinguished: knowledge, interest, consideration and sale.. You can use each of them to identify which key metrics can be used to measure your marketing efforts.
- Knowledge. In this instance, the user may not yet know your business and the solutions it provides. Therefore, the key is to make yourself known. How to do it? Online advertising, SEO and social networks are the most used routes. How do we measure it? CPM can be one of the most useful options.
- Interest. At this time the user already shows some interest in your business proposal, therefore, it is a key moment to capture their data and incorporate it into your contact list. What tools will we use? Banners pop ups to attract subscribers, marketing automation and, of course, email marketing . How do we measure it? With CTR marketing and CPC.
- Consideration. In this instance, the user still does not know if your business is the best option to solve their problem. Therefore, it is very likely that you are analyzing multiple alternatives. What actions can you take? A sequence of emails could be key to offering discounts and promotions, talking about the benefits of your product and making known success stories. How do we measure it? CTR marketing and CPA.
- Sale. Finally, the sale has been finalized. And here is two fundamental metrics: CAC and CPA .
What is CPM?
A key metric in the knowledge stage is CPM or Cost per thousand. This is directly related to the impressions of your campaigns and therefore, offers a fairly clear view of your brand awareness .
What are impressions? Are the number of times an ad is shown to a user. CPM measures the cost of an ad per 1,000 impressions. For example, if you set a CPM of $ 1, your business will have to pay $ 1 for every thousand impressions of your ad.
The CPM is therefore a good metric to apply when the objective is to reach a certain number of people . This way, you will be able to know how successful your marketing efforts have been in achieving this goal.
What is CTR marketing?
Clicks are a clear indication of how the ad or message shown by a certain brand impacts the user. This is the number of times a link is clicked. These links are usually placed in advertisements and in email marketing campaigns. A good click-through rate can mean that those actions are going well.
Among the metrics that allow measuring the number of times users click on a link, CTR marketing stands out. The Click Through Rate (CTR) or Click Rate is a key KPI, because it shows the number of times a link was clicked by the number of times it was displayed. Therefore, it is related to the number of impressions.
Thus, a high CTR implies that your marketing actions are directing as many people as possible to whatever you are promoting.. If people are clicking, it means they are interested in what your business has to offer. Therefore it is a key metric at the stage of interest within the client journey e .
CTR marketing is a KPI that can also be applied to both advertisements and email marketing. In the latter case, it represents the number of recipients who clicked on one or more of the links you include in your emails. To calculate it, the total number of clicks on the number of emails sent is measured.
This metric can also be used in the consideration stage , especially if you focus your actions on emailing campaigns.
CTR marketing can be a measurement tool that provides precise insights on how relevant your messages are to your target audience.. Therefore, it is an essential metric to include in your campaigns.
What is CPC?
The well-known Cost per Click (CPC) It is another of the key indicators to use if what you want is to measure your clicks. In this case, it is a form of payment according to the number of clicks made on an ad. This is a model used, for example, when buying keywords in Google AdWords.
It is a format that can be useful to know the precise results of your ads. Since the budget is spent based on the number of clicks it receives. Which somehow reflects how relevant the ad you are showing is to the user. At this point it resembles CTR marketing.
Therefore, the CPC is an interesting indicator to understand the interest of the public. Hence, it may be key in this stage of the Customer Journey .
What is CAC?
Another fundamental KPI: Customer Acquisition Cost (CAC). It is a metric ideal for use at the end of the customer journey. That is, after the sale is finalized. Is expresses what your company spends on acquiring a new customer .
Thus, you can assess how much money you have used to impact those users and convert them into customers. You can make this measurement in certain periods, that is, monthly, quarterly, semi-annually or annually.
What is CPA?
Something that usually happens is to confuse the Customer Acquisition Cost with the Cost per Acquisition (CPA). While CAC helps measure how much a customer who ends up buying costs, the CPA allows you to answer: did this campaign make my business earn money?
In this way, the CPA is a fundamental metric to know the financial impact of your campaigns.. In this sense, gives a clearer view of Return on Investment (ROI) .
If you want to know in depth how to calculate the ROI in your campaigns, do not miss this note .
The CPA can be applied in different stages of the Customer Journey , since it can be measured during the development of a campaign, especially in the last three instances: Interest, Consideration and Sale.
To do this, the total amount invested is taken, over the total number of conversions. In this case, When we talk about conversion we refer to the desired actions carried out by the user in relation to the brand. It can be to register for the newsletter, give your data in exchange for a lead magnet, register for a webinar and even buy a product, among other actions. For this reason, the CPA cannot be missing from the list of KPI’s for a business .
Now that you know the main metrics to measure the results of your marketing actions, you have more tools to get closer to the commercial objectives of your business. The best thing is that in case of not obtaining the desired fruits, thanks to these KPI’s you can know where to make improvements to optimize your campaigns. To measure and improve!
FAQ about CTR marketing
What is KPI and what is it for?
In digital marketing, there is no successful campaign without KPIs. KPIs are performance indicators that will reveal whether our strategies were successful or not . They are the metrics that will make the business objectives be met.
What is CTR marketing?
The CTR is that metric that indicates the percentage of clicks on a piece, over the number of impressions. It can be applied to an email marketing piece, in a social media ad, or on buttons within a website.
️ What are the main KPIs?
Within a digital marketing strategy and depending on the platforms used to implement it, you will find the following KPIs:
- CPM (cost per thousand impressions)
- CTR (percentage of clicks obtained)
- CPC (cost per click)
- CAC (cost per customer acquisition)
- CPA (cost per acquisition)