Plan: Create a Measurement Plan with Key Performance Indicators
Now that you have your customer journey mapped out, it’s time to identify the key performance indicator (KPI) metrics that will contribute and/or impact your goal.
“Metrics” refer to the terms/units used as a standard of measurement for each marketing channel. They are either used as a key performance indicator or serve as a diagnostic measurement for your analysis.
- Key Performance Indicator (KPI) Metrics – Metrics that “indicate” goal achievement or how close you’ve come (e.g., # of shoes sold during campaign period)
- Diagnostic Metrics – Metrics that can affect and support KPIs (e.g., in order for customers to buy shoes, they must “visit” the site in order to make a purchase via different traffic sources – Jane must pay attention to which the diagnostic “visits” by traffic source may affect her shoes sold “KPI”)
KPI = Total Shoes Sold 1,200
In the above example, the KPI is total amount of shoes sold on the website. To further understand where the visitors came from before purchasing the shoes, we looked into traffic source visits as the diagnostic metric.
Online activities are usually easier to track and will provide you a fuller “end-to-end” view of your marketing effectiveness. Most online platforms have either a built-in analytics tool or support third party integration. Offline, on the other hand, is tougher but not totally impossible. For example, unlike online banners or emails which has hyperlinks to bring users to your website, a prospect who may have seen your poster ad could potentially visit your website through either searching on Google or entering your website address. It is therefore difficult to attribute a traffic source that is a direct influence of an offline activity.
Offline tracking techniques such as the use of vanity URLs, QR Codes and unique promotion codes are commonly used to help identify traffic influenced by offline marketing efforts. We will discuss measurement techniques in more detail in the next section.
Commonly Used Key Performance Metrics and Diagnostic Metrics
A marketing tactic typically has multiple metrics that could fall under different stages in the customer journey. These metrics are usually universal which means they are commonly recognised across different tools. For ease of reference, please refer to the matrix table below for commonly used marketing channels and their respective key measurement metrics.
Platform Key Performance Metrics Diagnostic metrics/methods Website Users/Visitors - # of people who visited your website
Visits/Sessions - # of times your website was visited
Channels / Traffic sources - Where your visitor came from
Organic vs Paid - Organic reach is the total number of unique people who were shown your post through free distribution. Paid reach is the total number of unique people who were shown your post as a result of paid ads.
Search Keywords - The text entered in search engines before visitor came to your website
Landing pages - The first page the visitor sees when he/she reach your website. Useful to identify pages that effectively bring visitors through organic search
New vs Return Visitors
Reach Organic vs Paid - Generic search visitors vs Paid search visitors Sent - # of users you sent your email to
Open - # of emails opened by your users
Receive rate - % of users who received your email (Received/Sent)
Open rate - % of users who opened your email (Open/Received)
Bounce rate - % of users who did not receive your email although you’ve sent an email to them (most likely due to a bad email address)
Online Paid Media (SEM / Display / Social) Impressions - # of times your advertisement was shown CPM – Cost per Thousand impressions made. Usually used when buying advertising based on # impressions. E.g., $10 CPM = $10 for every 1000 impression or $0.01 per impression Offline Advertising Visits to your Online platform by Direct or Organic Search* *exact offline traffic source can be under-represented Offline Retail Estimated Shoppers who enter your shop
Platform Key Performance Metrics Diagnostic metrics/methods Website Page Views - # of times your webpage(s) was viewed
Avg pages / Visit - Avg # of page views was recorded for each visit
Event action - # of times an action (e.g., click) was recorded
Avg Site duration - Avg amount of time spent on your website by each visitor
Bounce Rates - % of visitors left your website without any action
Page Content Type - Webpage category (e.g., about us, product pages, services pages, etc.) to identify most popular content
Event Action Type - Interaction made (e.g., button click, click to download, click to play video, click on exit link, etc.) to identify navigation behaviour patterns
Page/Post Level – Engagement such as likes, shares or comments activity occurring at 2 levels. Page refers to your entire Facebook page. Post refers to a specific post on your Facebook page. Clicks - # of clicks on your call to action within your email Click Through Rate (CTR) - % click-thrus to online platform / emails opened Online Paid Media (SEM / Display / Social) Clicks - # of clicks on advertisement Click Through Rate (CTR) - % of clicks per impression (Clicks/Impressions)
Cost Per Click (CPC) - Media cost/Clicks
Offline Advertising QR code* - scannable code by mobile devices that lead to an online platform/site *Offline directing prospects to online platform Offline Retail Samples issued - # of samples given out
Demo views / day - Estimated shoppers who have seen demos per day
Platform Diagnostic metrics/methods Diagnostic metrics/methods Website Goals - your expected outcome/metric. E.g., A purchase is made once the visitor has seen the Thank You page. The Goal here will be a page view of your Thank You page. Reverse Goal Path - A report that shows the common steps taken by a visitor who reach your goal. Click-thru to E-commerce site / Call-to-Action (Call/Message to Purchase) Online Paid Media (SEM / Display / Social) Cost Per Acquisition - Media cost / Visitors who completed your goal Offline Advertising Promo code - User presents promo code at point of purchase Offline Retail Purchase / Sales
Platform Key Performance Metrics Diagnostic metrics/methods Website Social Interactions (e.g., Shares/Likes) - # of clicks on social buttons embedded in webpages Shared URL - The URL used on social media that brought visitors to your website to identify most popular shared content
Referral Sources - The Social Network that brought visitors to your website to identify the social platform that drove most traffic
Shares/Likes Offline Retail Returning customers
Membership or Loyalty programs’ take up rate can serve to review customers’ brand loyalty
Surveys – to rate and rank present performance and obtain improvement feedbacks