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9 Key Performance Indicators in Internet Marketing That You Should Know About

9 Key Performance Indicators in Internet Marketing That You Should Know About

Sergey Butko
Sergey Butko
April 6, 2016

Properly designated key performance indicators (KPIs) have a significant impact on the company’s results.

They provide knowledge on how to operate certain elements of the strategy and help to make business decisions.

Therefore, the establishment and monitoring of KPIs should be a part of the work of the manager of each department, even marketing.

 

Measuring every indicator is pointless

 

In Internet marketing you can measure almost everything.

 

The selection of analytical tools depends only on what parameters you want to track.

 

If you know how to use them, you will be able to optimize marketing activities to achieve the desired results.

 


Success depends on the ability to interpret the numbers and translating this knowledge into business goals.


 

However, there is a risk that we will get lost in the maze of available information.

By measuring every aspect of all activities, we will lose time and the goal which we want to gain.

Therefore, we should start by determining what actions bring us closer to the goals and specify what we want and can measure.

 

Key Performance Indicator

 

By observing KPIs (Key Performance Indicator), you can measure the effectiveness of taken actions – to identify the most effective, change or improve inefficient operations or to locate problems.

 

Measuring KPI also provides feedback to employees about their work.

 

KPIs in Internet marketing

 

The purpose of Internet marketing is generally speaking to generate quality traffic to your website or online store.

Moreover, the purpose is to translate visitors into leads and leads into clients.

See the illustration below:
1.png

 

KPIs are helpful in marketers work:

 

1. Traffic

 

Website visitors are potential leads that may become customers.

Therefore, it is worth to know them better and find out who they are, where they are from and what they are looking for.

This information will help to determine the most critical thing: WHAT THEY WANT AND HOW CAN I HELP THEM?

By knowing this, you can predict their needs.

Traffic is a component of many parameters that are measurable and linked to engagement.

 

This includes:

 

  • Sessions
  • Members
  • Hits
  • Pages per visit
  • Average session time
  • Bounce rate

 

2. The proportion of to leads

 

How many people from all visitors became leads?

 

This ratio shows whether traffic is valuable.

 

Generally speaking, if this translates into leads and shares?

 

3. Conversion factor

 

Your website should work for you 24 hours a day, by attracting new leads and carrying them through the sales funnel.

Traffic does not tell us much, but it is necessary to calculate the conversion rate which is essential for marketing and sales.

To calculate, it is helpful to measure the number of completed contact forms, phone calls made or emails sent.

The basic scheme of generating leads:

 

2.png


If only you improve the conversion rate, the effects can look like this:


3.png

 

Heavy traffic on the website does not guarantee success.

 

This might mean that visitors did not find what they were looking for or they did not have the opportunity to dispel their doubts via e-mail or phone.

 

As you can see, the quality of traffic is very important as well as height of conversion factor.

 

4. The proportion of leads to clients

 

This is a very important yardstick. It helps to diagnose whether on the path of the purchasing customer does not have any obstacles. If only little leads became customers you can improve it by lead nurturing actions or by pre-sales service, to dispel the objections of potential customers and to better prepare leads to make purchase decisions.

 

5. The response time of sales department

 

The quality of leads falls with the passage of time.

 

It's crucial to reduce the contact time with the sales department with a potential customer as short as possible. 

 

The question is how long it takes in your company?

 

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6. The cost of obtaining a lead

 

Another important indicator is the cost of acquisition, or the amount spent on the acquisition of a lead.

 

It contains -

• The number of hours devoted to generating leads,

• Money spent on marketing tools,

• Money spent on services that provide support in marketing activities.

4 (1).png

 

The sheer number of leads does not mean much and does not determine the success of the marketing campaign.

 

That is why marketing departments depend on the development of a low cost solution for lead acquisition to maintain an appropriate margin and to achieve significant growth.

 

By measuring the cost of obtaining a lead from various online sources, you can focus on activities that are most beneficial to the business.

 

Moreover, you will be able to invest more.

 

7. Income from leads

 

It is worth to know not only the cost of acquiring a lead, but also an estimated sales value of each new lead.

 

This knowledge helps to predict future sales based on the expected traffic and conversion rate.

 

This KPI factor will help to determine where the most lucrative leads come from.

 

It will allow you to better invest marketing budget in selected online channels.

5.png

8. The percentage of sales from Internet channels

 

KPI factor is often overlooked, but it is important for every manager of each department.

 

By increasing the shares of sales attributed to Internet marketing operations, you can show the value of a specific department and justify greater investment for it.

 

Building the right strategy and implementing it with the right people using new technologies is the key to increase investment in the marketing department and scaling actions.

6.png

9. Customer lifetime value

 

Indicator of customer lifetime value (CLTV, LCV, LTV), is known as long-term customer value or total customer value.

 

In short, it is the amount of revenue the client generates for the Company for the entire duration of their relation.

 

CLV indicator informs you how much you can earn on the average customer.

 

Mostly, it requires a comparison of the value of customer with the cost of acquisition.

 

This let us know how much you can spend to attract customers, and whether it was profitable.

 

CLV indicator helps decide how to allocate budget e.g. For the acquisition of traffic or for after-sales support 


We presented only selected KPIs, which are used in Internet marketing.

 

Be sure that your Company’s KPI is correlated with business goals and it is also possible to measure, monitor and achieve.

 

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