How to Set and Track KPIs with Your Digital Marketing Agency

How to Set and Track KPIs with Your Digital Marketing Agency

If you’re working with a digital marketing agency (or thinking about it), you’re probably wondering how to make sure you’re getting your money’s worth for longer-term projects or paid relationships. We know you want your investment to be well worth the cost you put into the work being done! Today, we’re diving into the world of Key Performance Indicators (KPIs) – your secret weapon for marketing success.

Why KPIs Matter (And Why You Should Care)

First things first: what the heck are KPIs, and why should you give a hoot? KPIs are basically the vital signs of your marketing efforts. They’re measurable values that show how effectively your organization is achieving key objectives. In other words, they’re how you know if your marketing is actually working.

Think of KPIs like the speedometer and fuel gauge in your car. They tell you how fast you’re going and how much gas you’ve got left. Without them, you’re just cruising blind and hoping for the best. Not exactly a winning strategy, right?

Setting the Right KPIs: It’s Not One-Size-Fits-All

Now, here’s where a lot of folks go wrong. They think there’s a universal set of KPIs that work for every organization. Spoiler alert: there isn’t. Your KPIs should be as unique as your brand. Here’s how to set the right ones:

  • Start with your goals: What are you trying to achieve? More sales? Better brand awareness? World domination? (Okay, maybe not that last one.)
  • Break it down: For each goal, what specific metrics would indicate success? For example, if you want more sales, you might look at conversion rates or average order value.
  • Make it SMART: Ensure your KPIs are Specific, Measurable, Achievable, Relevant, and Time-bound. “Increase website traffic” is vague. “Increase organic website traffic by 25% in the next quarter” is SMART.
  • Align with your agency: Work with your digital marketing agency to set KPIs that reflect both your organizational goals and the specific strategies they’re implementing.

Common KPIs to Consider (But Don’t Just Copy-Paste!)

While your KPIs should be tailored to your organization, here are some common ones to get your gears turning:

  • Website Traffic: How many people are visiting your site?
  • Conversion Rate: What percentage of visitors are taking desired actions?
  • Cost Per Lead (CPL): How much are you spending to acquire each potential customer?
  • Return on Ad Spend (ROAS): How much revenue are you generating for each dollar spent on advertising?
  • Engagement Rate: How are people interacting with your content on social media?
  • Search Engine Rankings: Where do you show up in search results for key terms?
  • Customer Lifetime Value (CLV): How much revenue does a customer generate over their entire relationship with you?

Remember, this isn’t a checklist. Pick the KPIs that align with your specific goals and strategies.

Tracking Your KPIs: Where the Rubber Meets the Road

Alright, you’ve set your KPIs. Now what? It’s time to track them like a boss. Here’s how:

  • Use the right tools: Your digital marketing agency should have access to a suite of analytics tools. Common ones include Google Analytics, SEMrush, Hootsuite, and HubSpot. Make sure you have access to these dashboards.
  • Set a schedule: Decide how often you’ll review your KPIs. Monthly is usually a good start, but some metrics might need weekly or even daily monitoring.
  • Create a dashboard: Work with your agency to create a custom dashboard that shows all your key metrics at a glance. No need for a PhD in data science to understand what’s going on.
  • Look for trends: Don’t get too hung up on day-to-day fluctuations. Look for overall trends over time. Are things generally moving in the right direction?
  • Benchmark against industry standards: How do your metrics stack up against others in your industry? Your agency should be able to provide some context here.

When KPIs Go South: Don’t Panic, Pivot

Here’s a hard truth: sometimes your KPIs aren’t going to look great. Maybe your cost per lead is through the roof, or your engagement rates are in the basement. Don’t freak out. This is actually where the magic happens.

When KPIs aren’t meeting expectations, it’s an opportunity to learn and improve. Work with your agency to:

  • Analyze the data: What could be causing the underperformance?
  • Brainstorm solutions: What strategies could turn things around?
  • Implement changes: Put those ideas into action.
  • Monitor results: Keep a close eye on how the changes affect your KPIs.

Remember, digital marketing is all about testing, learning, and optimizing. It’s a journey, not a destination.

Communication is Key (Performance Indicator)

Last but not least, make sure you’re in constant communication with your digital marketing agency about your KPIs. Schedule regular check-ins to review performance, discuss challenges, and plan the next steps. A good agency will be proactive about this, but don’t be shy about asking for updates or explanations

Wrapping It Up: Your KPI Action Plan

So, there you have it – your crash course in setting and tracking KPIs with your digital marketing agency. Here’s your action plan:

  • Set clear, SMART KPIs aligned with your business goals.
  • Work with your agency to implement robust tracking.
  • Regularly review your KPIs and look for trends.
  • Use data to inform strategy adjustments.
  • Keep the lines of communication open with your agency.

Remember, KPIs aren’t just numbers on a screen. They’re the story of your marketing efforts, telling you what’s working, what’s not, and where your next big opportunity might be. So get out there, set those KPIs, and start writing your success story!

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