While followers and likes are particularly important as key figures in social media marketing, the conversion rate or cost per order (CPO) is more important in e-commerce. Different KPIs are, therefore, relevant in each sub-area of internet marketing. However, to give you an initial overview of the KPIs, we have compiled a selection of the most basic internet marketing metrics.
The conversion rate is a crucial variable key figure in internet marketing. The conversion rate can determine how successful a particular advertising measure is. For example, imagine you run a website with an online shop for orthopedic shoes. The conversion rate percentage tells you exactly how many visitors to your website have bought a pair of shoes, i.e., how many of your visitors have “converted” to customers. However, a conversion does not necessarily mean a transaction or a purchase. For example, newsletter registrations or downloads of a lead magnet can also count as conversions.
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NUMBER OF CONVERSIONS
The number of conversions is the sum of your conversions over time, such as a week or a month.
RETURN ON INVESTMENT (ROI)
The key figure of the return on investment (ROI) answers the question of how much profit your company makes with a certain amount of capital. Let’s stick to our example. If your shoe company used 10 million euros of capital in a fiscal year and made a profit of 1 million euros, the ROI for the fiscal year is 10 percent.
In short, the ROI describes the relationship between investment and profit in percent. Translated into English, return on investment means “return on capital.” This key figure shows whether the relationship between the success of a marketing measure and the capital used for it is consistent.
RETURN ON ADVERTISING SPEND (ROAS)
Let’s say your orthopedic shoe company runs an ad on Facebook. Now you want to find out how profitable the campaign was. The return on advertising spend key figure will help you with this. For example, if your company invested 100 euros in the campaign and made a profit of 600 euros, the ROAS is 600 percent. Basically, the higher the ROAS, the more profitable the advertising measure.
COST-SALES RATIO (KUR)
The cost-sales ratio describes the relationship between sales and costs. The following applies the smaller the key figure, the more efficient the advertising campaign or measure. In contrast to the ROAS, a higher number is not positive here but indicates a high proportion of costs incurred.
The abbreviation KUR stands for the term cost-sales ratio. The indicator describes the relationship between costs and sales. You can use this KPI to evaluate an internet marketing campaign’s effectiveness. The following applies: the smaller the KUR value, the more effective the campaign was for the advertiser from an economic point of view.
This article has introduced you to a number of the most important metrics for internet marketing. Now it’s up to you to subject your KPIs to regular analysis. However, the key figures for evaluating your marketing measures depend on your objective. For the key figures to be meaningful, it is always necessary to measure them continuously to make the values comparable and identify positive or negative developments. If you consider these aspects, KPIs will help you not to lose track in the data jungle of internet marketing and to optimize your marketing!
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