The Basics of Key Performance Indicators (KPIs) and Campaigns
Imagine you run a bakery and Valentine’s Day is just around the corner. You plan to run a marketing campaign advertising specialty baked goods along with your regular offers for the date.
Effective marketing campaigns have become essential tools to ensure your business is successful. Thanks to social media, advertising a product or service has never been easier. But how will you determine the success or failure of your bakery’s campaign? The answer lies with Key Performance Indicators (KPIs).
Marketing KPIs are defined as “a measure that ties your online marketing efforts with business goals,” (Bharathi, 2021). By analyzing them once Valentine’s Day is over, your bakery will know whether to continue in this direction next time there’s a holiday or pursue new marketing efforts.
Since Valentine’s Day is one of the busiest days for bakeries, it’s common knowledge that it’s better to put in an order for your desired goods ahead of time. Directing consumers to your bakery’s website via preordering will increase its number of visitors. Maybe consider a bonus offer such as 20% off your online order. Web page visits are an excellent KPI for monitoring the success of your campaign.
However, you can’t take the number of visitors at face value. You have to consider the number of leads versus the bounce rate. Which customers browsed your website and who simply clicked on the link but didn’t go further than the first page? If your bounce rate is high, carefully analyze every aspect of your website. Is it easy to navigate? Is it mobile-friendly? Don’t worry, calculating your bounce rate is easy. “Since the bounce rate is the percentage of visitors who only view one page on your site, it’s calculated by dividing the total number of single one-page visits by the total number of visitors,” (Zantal-Weiner, 2021).
Understanding the number of sales qualified leads generated — and, in turn, how many of them purchased your baked goods — is a valuable statistic for determining the success of your campaign. Google Analytics provides the numbers you will need to determine your success rate.
Once your bakery’s campaign has concluded, you must ask the ultimate question: did my bakery make more money this year? Like every other company, your bakery must keep track of its revenue. Simply monitor the sales growth between this Valentine’s Day and the last for the results. If your sales went up by, say, 12.7%, this can indicate that your campaign was successful. If they went down by 7.6%, you could infer the campaign was unsuccessful.
Now consider these statistics for your company in real life. If they prove your recent campaign was successful, congratulations! You now have an outline for future marketing efforts. If your campaign was unsuccessful, don’t get discouraged. Consider possible ways to improve in the future such as more frequent and improved content, boosting your posts, launching a marketing campaign earlier, or increasing the marketing budget if you can afford it. Utilizing KPIs, studying them to ensure which ones you should focus on, and taking their results into account will help your company perform better in the future.
Work Cited
Bharathi, N. (2021, October 19). 10 Website KPIs Every Growth-Driven Marketer Should Track. G2’s Learn Hub. Retrieved February 17, 2023, from https://learn.g2.com/website-kpis#:~:text=A%20website%20KPI%20is%20a,and%20success%20of%20marketing%20strategies
McGuire, L. (2018, March 15). 8 Sales and Marketing KPIs to Track. Formstack. Retrieved February 16, 2023, from https://www.formstack.com/resources/blog-sales-marketing-kpis-to-track
Varagouli, E. (2021, August 6). 20 Marketing KPIs You Need to Be Monitoring. Semrush. Retrieved February 17, 2023, from https://www.semrush.com/blog/kpi-marketing/?kw=&cmp=US_SRCH_DSA_Blog_New_Ads_EN&label=dsa_pagefeed&Network=g&Device=c&utm_content=645576875653&kwid=dsa-1753200725493&cmpid=19583513418&agpid=146272680158&BU=Core&extid=60162630042&adpos=&gclid=Cj0KCQiAxbefBhDfARIsAL4XLRoRlZKALsj1AtI7pKB4jfjk1X8u_TR1-d_meZAWEMRw34PPqb4rUsgaAvkeEALw_wcB
Zantal-Weiner, A. (2021, December 22). What Is Bounce Rate? (And How Can I Fix Mine?). HubSpot. Retrieved February 17, 2023, from https://blog.hubspot.com/marketing/what-is-bounce-rate-fix
(2021, May 4). All you need to know about marketing KPIs. Monday.com. Retrieved February 16, 2023, from https://monday.com/blog/marketing/marketing-kpis/?cq_src=google_ads&cq_cmp=6532870700&cq_term=&cq_plac=&cq_net=g&cq_plt=gp&utm_medium=cpc&utm_source=adwordssearch&utm_campaign=us-en-prm-workos-work_mgmt-dsa-b-search-desktop-exp-aw&utm_keyword=&utm_match_type=&cluster=&subcluster=&ati=&utm_adgroup=marketing%20category&utm_banner=556314504442&gclid=Cj0KCQiAxbefBhDfARIsAL4XLRqkGZUNJYL5lDrK4QWblbHDFNDHcJ7HFvtv5f-BOpSQHsbITqR_J4MaAvCMEALw_wcB
(n.d.). Lead generation. Optimizely. Retrieved February 17, 2023, from https://www.optimizely.com/optimization-glossary/lead-generation/#:~:text=Lead%20generation%20is%20the%20process,%E2%80%9D)%20via%20a%20web%20form