Monthly KPI Reporting Basics
One of the biggest benefits of online marketing is that you can measure everything.
However, that’s also the problem.
Metrics on their own are useless… they just add to the noise.
And with free tools like Google Analytics, you’re given an abundance of data. Probably more than you’ll ever care about.
The problem is that people scrutinize and demand useless data because they don’t know or care for any better.
Without an understanding of what to look for and how to glean insight from the data, they’ll ask for every metric imaginable.
If your job function is business intelligence or web analytics for a large enterprise, then this might be a great way to spend your afternoon.
However if you’re a small business, consultant, entrepreneur, or just too busy, you need to focus on measuring what actually matters, and then address those issues.
Instead of measuring everything, focus on measuring the process.
Measure the Sales Funnel Process
A sales funnel is a process of assessing where people are at any given time during the buying cycle.
It begins with brand awareness, and progresses to a potential lead, converted customer, loyal customer, or past customer.
This means you’re looking for:
- Awareness: Do they know you exist?
- Interest: Are they interested in what you’re saying?
- Nurture: Are they building trust with you?
- Conversion: Did they make a purchase?
This sales funnel qualifies people in each stage, and tailors your message or medium appropriately.
You should be focused on Key Performance Indicators’s (KPIs) by performance because they’re easy, relatable and actually mean something concrete. (Insight that lets you make some business decision!)
This immediately lets you know where you’re doing well or falling short, and gives you the ability to do something about it.
The goal of a sales funnel is that ultimately someone will take action.
That could mean signing up for your newsletter, downloading a trial, or requesting a quote.
You want to measure and improve your ability to acquire attention, stimulate interest, nurture trust and compel action.
How to Choose Reporting Metrics
Online marketing can be overwhelming.
There’s so many things to measure. You can’t afford to keep track of everything.
Stop trying to get real-time data and a thousand KPI’s. Just focus on the things that really matter!
Instead of measuring keyword rankings, focus on your sales funnel.
Simplify your life and only focus on these 3 blog metrics.
1. People Visiting Your Website
The first thing you need to measure is awareness.
And you can do this by looking at your traffic sources.
Your traffic sources are made up of Direct, Referral and Search Engine traffic.
Do these numbers make sense? How can you increase them?
One of the best ways to get people’s attention is to create content. It’s good for SEO and for users.
People search because they have some intent. They have a problem and they’re looking for a solution.
Now that solution may just be a distraction, but they’re still looking for something specific. Give them that solution.
2. People Opting In
The second metric you need to track is trust.
Remember, people won’t buy from you unless they trust you. People today will research everything about you before they decide to do business with you.
So after you’ve got their attention, you need to develop trust.
When visitors arrive at your website, you want them to opt-in to your RSS or email list. This is one of the most important marketing assets you can have.
Again, you need to offer them something of value. Teach them something.
This can be through blogging, or a free introductory guide.
This gives you the chance to market to them over time and develop a sense of familiarity. You’ll stay top of mind and become synonymous with your service or product.
Then when they’re ready to buy…
3. People Purchasing Something
The third and final thing you need to measure is conversions.
How many people are actually buying something?
Creating content and building trust are crucial. But then you need to ask for a sale. You need to present them an offer.
This is how you move them down the sales funnel. For example, one important conversion rate we’ve already established is how many people convert from strangers to prospects. You would take your total visitors divided by RSS/Email subscribers.
Same goes for people purchasing. Track how many people are actually buying something out of everyone coming to your website. Once you have that number, then you know how much each customer is worth.
John Jantsch from Duct Tape Marketing has coined this definition:
Marketing is getting someone who has a need to know, like and trust you.
You first need to focus on getting people to know, like and trust you. That’s the hard part.
Then you just solve their problem. Give them a solution. That’s it.