Marketing terminology: What is KPI?

?? KPI stands for Key Performance Indicator. When we are talking about KPIs in digital marketing then KPIs are values you can accurately measure in order to monitor the performance of your digital marketing campaigns.

?? But KPIs can be used for business, marketing, or even your personal life.

?? We look at KPIs over time in order to see if our progress is advancing or decreasing.

?? Example: Cosmetic surgeons

?? If you are a cosmetic surgeon and you are running ads in order to drive more monthly leads including phone calls, appointment bookings, or contact form submissions. In this case, your KPI is “Lead per month”.

?? In this example, you should focus on how many leads per month do you get and from which channel or activities. Then you can optimize your strategy and concentrate on activities that drive the most leads and focus on them.

?? You can also compare KPIs to the budget/cost to see which channels bring you the best quality leads for the dollar you invested.

Tips:

? Track 1 major KPI like leads

? Always use same time span: monthly or quarterly data

? Understand factors that lead to the growth or decline of a KPI

? Use KPI data for future marketing strategies

?? Other KPI examples: Revenue, profit, lifetime value of a customer, phone calls, contacts, sales, social media followers, contacts, total website traffic, bookings, downloads, cost per lead, organic traffic, video views, etc.