Understanding Key Performance Indicators (KPI’s) in Digital Marketing: What to Measure and Why

When launching a new marketing strategy, how does one know if it had a meaningful impact on the overall marketing campaign of the business? This question and challenge is one that many marketers have attempted to answer by tracking key marketing metrics and numbers. These metrics are often called key performance indicators or KPIs, and determining and aligning around KPI’s as success metrics is the key to tracking the performance of any marketing project.

Whether your brand is launching a new product, new service, or new marketing campaign, it is essential to know whether or not the experiment or project is successful or not. Most digital marketers are familiar with KPIs and understand that they are a quantifiable measurement of success; however, a majority of marketing teams struggle with knowing which units of measures matter and which are not relevant.

When it comes to KPIs, there is no one-size-fits-all approach. Different teams, projects, and companies may require varying KPIs, and it is pointless to only follow the same handful of KPIs and expect the numbers to point to success. Below outlines how to narrow down KPIs indicators to the most important, consistent, and relevant ones for fintech marketing teams.

What are Digital Marketing KPIs?

Digital Marketing KPIs for social media are outlined as measures or metrics that indicate the success rate of a digital marketing project. These KPIs typically line up with specific business goals that a fintech may have. These include the following:

• Brand Awareness or Website Reach (SEO)
• Visitor Engagement or brand positioning
• Leads, sales
• Loyalty and Retention
• Employee Engagement (Hiring and Retention)

Below are four Digital Marketing KPIs that all financial brand marketers should consider tracking in order to properly identify marketing success or marketing failures in their campaigns

Click-Through Rate (CTR)

Click-Through Rate, or CTRClick Through Rate: The percentage that shows the number of clicks that your ad receives divided by the number of times your ad is shown. Clicks ÷ Impressions = CTR., is a commonly used KPI that tracks the percentage of clicks on any given link that generates impressions. This metric not only tells marketers how many individuals have seen a company’s message but also how many have taken action on the site and continued their search through the site. The longer a fintech can engage its audience on its company site, the better. CTR tracks the activity that is performed on the site, from accessing shopping carts to clicking through client testimonials and company case studies. It’s the perfect metric to understand just how users are traversing and experiencing one’s website.

Overall, CTR provides a variety of insights into potential marketing tactics and exactly how one’s content resonates with the company’s target audience. Generally speaking, a CTR of over 1% demonstrates that the site is healthy and evoking action among its users. Optimal CTR depends on multiple factors, such as incentivizing call-to-action buttons, varying target audiences, and transformative website copy. Reviewing historical CTR metrics provides fintech marketers with the ability to determine which campaign elements have been working and the opportunity to discern which elements have not been working in order to understand when it is time to pivot and implement a new personalized strategy for their consumers.

Conversion Rate

Conversation rate is a key metric, the bread and butter of Digital Marketing KPIs and content strategy. This metric is an insight into whether one’s marketing funnel or campaign was successful in converting potential customers into clients. It can especially be applied to the fintech industry, as client conversation can be harder to achieve than in other industries. By providing a top-notch customer experience and journey, this KPI should always be met. The challenge is to get the user to flow through the funnel and complete the journey to become a paying customer.

One’s conversation rate ends up being the number of individuals who have been converted to a customer of the brand or those who have performed the action that was intended for them divided by the total of users who have entered the funnel and taken the first action regardless if they continued further in the cycle or not. This metric is a broad value that reflects how successful one’s marketing efforts were overall.

Keyword Ranking

Keyword ranking is a vital metric for any business and is especially relevant given how massive and vital the internet is to gain exposure and market share. Mastering search engines is key for brands that mainly operate and acquire customers online. Creating relevant content for one’s business is crucial to ranking well on the Internet. This is where keyword ranking comes in as marketers strive to replicate marketing content around core keywords or phrasing that is likely to rank well organically. The less funding one can spend on advertising, the better, as growth can be done through organic and less expensive methods in order to save the business some spending money.

Organic search is often how customers find brands. When a potential customer is in the market for a fintech product or service and searches for it, being on the first page is important in order to not miss out on an individual who is already in the market and looking for a fintech provider. Keyword ranking is the perfect metric to show marketers if they are in the right position to capitalize on this organic growth and if their webpage is in the position to be found by potential customers. In order to be seen by more individuals, marketers work to optimize their keywords, page content, headings, meta tags, etc. Staying relevant is crucial and tracking keyword rankings is the perfect way to stay in the game and ahead of competitors.