Digital marketing is not about sharing a piece of content these days, it is defined by some Key Performance Indicators (KPIs). These parameters provide a better understanding of your social media marketing landscape and effective strategies that provide results. To remain at the top of the online marketing game you need to understand what works for your brand and what not, with our guide you can learn about the essentials of digital marketing metrics and social media KPIs.
Why Key Performance Indicators (KPIs) Matter In Digital Marketing?
KPIs are valuable tools to provide insights about digital marketing, let’s take an example of a fashion brand that has a massive collection on its website, but promotes only a certain set of articles. These articles are chosen based on the following criteria:
- Maximum Impressions on the product page.
- Increase in add-to-carts.
- High Purchase rate of a particular product.
- Maximum number of queries on a collection.
The above points are the key parameters, by tracking the right metrics you can easily analyze the brand’s performance. The data-driven by these campaigns helps to establish a successful campaign on multi-channels. By tracking the right KPIs, you can make data-driven decisions that lead to better outcomes.
Measure Success, Define Style: Fashion Brand KPIs Unveiled!
- Website Traffic: This metric defines your brand’s visibility and online presence. It indicates how many people are visiting your online store and engaging with your content. A higher traffic rate results in increased conversions and higher revenue.
You can measure Traffic in the Google Analytics tool to check the following KPIs:
- Total Page visits
- Page views
- Session duration
- Conversion Rate: It measures the percentage of visitors with actions such as Add to carts, Purchase, initiate checkouts, sign-ups, and more. This metric helps to track the effectiveness of your product page and checkout, sign-up, or service flow. You can measure this metric via Google Analytics tools to check the following values:
- Click rate
- Season rate
- Customer Acquisition Cost (CAC): This parameter measures the spent rate to acquire a new or returning customer. To increase the profits and new customers rate on your online store you must maintain the Customer Acquisition Cost. It is calculated by the following formula:
- Return On Investment (ROI): This parameter helps you to measure and analyze the efficiency and profitability of your business. This metric compares the amount of revenue generated from marketing activities to the marketing cost. You can calculate ROI via the following formula:
- Social Media Engagement: This parameter refers to the interaction rate between the audience and social media platforms such as Facebook, Instagram, TikTok, Twitter, YouTube, and more. Social media interactions include likes, comments, shares, retweets, and other forms of participation. Social media engagement is measured by the following:
- Likes
- Shares
- Comments
- Follows
- Mentions
- Email Marketing Metrics: This metric is required to understand the audience’s interaction with the email campaigns or flows. Email marketing Metrics are essential to analyze and promote your collection based on previous stats. Here are some of the key email marketing metrics Open rate, Click rate, Purchase rate, List Growth rate, ROI, and more
How To Select The Right KPIs For Fashion Online Store
Selection of a Correct set of Key Performance Indices (KPIs) is important to improve your brand’s online presence and implement the correct digital marketing strategies. The most important part of a selection of KPIs is the stage and goal of your eCommerce business. Things that do not have any direct impact on your brand should not be chosen as KPIs. Each of the KPIs should be easy to understand and linked with your brand’s objective. Here are some steps to choose the relevant KPIs:
| Step 01 Define your business goals to select the correct KPIs to enhance your marketing strategies. Some of the goals are Increasing sales, brand awareness, increasing potential audience, and more. | Step 02 Study the industry benchmarks to understand the successful KPIs for an online fashion store. This helps to target your audience effectively and generate sales. |
| Step 03 Make use of analytics tools such as Google Analytics, social media insights, and email reports to understand customer behavior towards your brand. | Step 04 You should review your brand’s performance data and insights and adjust or update the KPIs and marketing strategies as per that. |
The Studio: Your Fashion Marketing Toolkit
Digital marketing success story relies on two parameters one is the strategy and another one is the Key Performance Indicators (KPIs). These two parameters work are interlinked. The marketer should know how to choose the correct KPIs for your business and what strategy should be applied to improve the issues. These parameters help to understand the market very closely as you can study customer behavior and based on that re-targeting can be done.
We at The Studio help to improve your brand’s online presence by implementing the Race model framework in combination with the latest trends in the market. Start tracking and utilizing these KPIs today and watch your digital marketing efforts escalate with us!!