Key Performance Indicators (KPIs)

17 Jan., 2023

Search Engine optimization

kpi mik group

If you've spent some time developing marketing plans and strategies for your business, you probably have a pretty good idea of ​​what's important. You know you need a website, a blog, social media, and good content. But you might not have considered the most crucial part of online marketing: measuring your results! That's why KPIs, or Key Performance Indicators, are essential for online marketers.

What is a key performance indicator (KPI)?

Key Performance Indicator

A Key Performance Indicator (KPI) is a metric that you define yourself to measure how effectively your company or team works towards achieving a business goal.

Some examples of KPIs in the SEO-Industry are the monthly organic traffic, Keywords in the top 3 the SERPs, the retention rate, the Number of backlinks and many, many more.

Digital marketing teams therefore use various platforms and tools to promote their product or service offerings. However, tracking the results can be time-consuming and difficult.

However, when digital marketing teams create specific marketing KPIs and track them in a dashboard, it suddenly becomes easy to set goals and KPIs and measure performance based on these values.

When we look at SEO KPIs, we distinguish between three groups: On-page, technical and off-page KPIs. By on-page SEO we mean all those key performance indicators (KPIs) that are influenced by measures typically associated with search engine optimization.

When we hear SEO, we primarily think of a website's organic visibility, i.e., its ranking in search engines, impressions, Keyword rankingsWebsite traffic, click-through rates, or time spent on the website. These KPIs essentially form the basis of... The basis for daily SEO workThese metrics can be used to see how well a website is positioned and how it develops over time.

The most important KPIs, which should be included in every SEO report, are the "on-page" KPIs and therefore form the basis for our SEO performance tracking. Just as important as knowing the individual indicators is understanding precisely how they influence each other and which interactions There must be a balance between them. Otherwise, one can quickly get lost in detailed analyses and optimizations for a single value and lose sight of important relationships and the big picture.

The most important Key Performance Indicators to track

Key performance indicator tracking

 

Now that you know the answer to the question "What is a marketing KPI?", you should take a closer look at some of the most important marketing KPIs. If you are serious about tracking the performance of your online marketing campaigns, you should consider these. Monitor 12 KPIs.

 

1. Conversions (sales and leads)

KPI conversion rate

Conversion rate and the total number of conversions are important SEO KPIs to track. You need to know not only how many potential customers clicked on your website, but also how many of them achieved a goal, such as starting a trial or purchasing a product on your e-commerce website.

The formula is:
Conversion rate = (Conversions / Total visitors) * 100%

For example, if your website had 100.000 visitors and 5.000 conversions last month, your conversion rate is 5 percent.

 

2. Customer Lifetime Value (CLV)

Your Customer Lifetime Value (LTV) assesses the long-term (or lifetime) value of an average customer. Calculating the average lifetime value of customers can help your company create better marketing budgets and develop appropriate cost per lead.

The formula is:
LTV = Customer Value * Average Customer Lifetime

You can determine average customer lifetime by calculating the average number of years a customer stays with you. For example, if you offer Software as a Service (SaaS), your target audience might remain customers for several years. In comparison, an e-commerce store can have a much shorter lifespan.

 

3. Cost Per Acquisition (CPA)

Cost per Acquisition (CPA) is a metric that measures the cost of acquiring converting users. SEO costs can include everything from team salaries, agency fees, and SEO tools to content production and link building. CPA is an important KPI to track for your SEO campaigns, as comparing it to Customer Lifetime Value (CLV) can reveal potential inefficiencies in acquiring new customers. A high CPA can indicate that you're spending money on content targeting the wrong keywords or aimed at a user base that is unlikely to convert.

The formula is:
Total SEO costs (agency fees, content, SEO tools, etc.) / conversions = CPA

 

4. Return on Investment (ROI)

Return on Investment (ROI) estimates the business value of all SEO activities compared to their costs.

The formula is:
SEO ROI = (Value of organic conversions – Cost of SEO investments)/Cost of SEO investments * 100.

In other words, you have to divide the SEO gain by the associated SEO costs and then multiply the result by 100 to get the ROI percentage.

 

5. Organic Visibility

kpi be visible

Organic visibility refers to how visible your brand is in organic search results, also known as... Search visibility It is well-known. It is one of the most important SEO metrics to keep an eye on, as it is directly related to SEO efforts, business growth, and brand reach.

Traditionally, organic visibility was measured by a standard search engine results page (SERP) of 10 blue links, but today SERPs are much more dynamic and complex. Organic visibility now needs to be considered not only for 10 blue links, but also for the knowledge panel, local packages, featured snippets, and a growing number of other SERP features.

However, the most important finding remains the same: the greater your organic visibility, the more potential customers you reach.

Google Search Console provides a broad overview of your organic visibility by displaying the number of impressions over a specific period. This is a perfect way to demonstrate ongoing visibility growth, as impressions show search queries where your website appeared, even if those searches didn't result in clicks. An increase in impressions indicates an increase in organic visibility and is a great indicator of continued growth.

 

6. Organic Sessions

Growth in organic impressions and visibility should lead to an increase in organic sessions. This is where you can begin to demonstrate the real impact of your SEO strategy. Impressions lead to traffic, and traffic converts into conversions. Then you'll notice an improvement in your SEO ROI.

You can easily monitor organic traffic with Semrush's location tracking tool. Simply create a project, enter your domain or URL, select your location, and enter the keywords relevant to your business.

 

7. Branded vs. Non-Branded Traffic

Branded traffic is usually driven either by prior knowledge of a company or by a recommendation from someone else.

Since this obviously means that a marketing channel is working well, branded traffic is not necessarily an indicator of the success of your SEO efforts. Therefore, branded traffic is not typically used as an SEO KPI.

Non-branded traffic typically consists of people searching for keywords related to the products or services for which you rank highly. In other words, traffic from searchers who were likely unfamiliar with your company before seeing you on Google.

 

8. Keyword Ranking

KPI keyword ranking

You need to track specific keywords for which you want your landing pages to rank in search engine results pages (SERPs). Google keyword ranking is the position your website occupies in Google when users search for that phrase or keyword. For each search term, you also want to know the search volume/visibility to understand how many people will potentially see your page in the results.

 

9. Google Business Profile Metrics

The Google Business Profile (formerly known as Google My Business) is a free Google tool used to manage a business's presence on Google. If you are a local business, you should use the Google Business Profile.

Once you've set up your Google Business Profile, you'll see several metrics tracked by default on the platform, including searches, views, clicks, directions, and calls.

 

10. Backlinks

Backlinks are hyperlinks on other websites that point to your website. These links act as "recommendations" to Google about your website. Link metrics you should measure include:

  • Total number of backlinks
  • Total number of referring domains
  • Number of broken links
  • Number of links gained

 

11. Organic CTR

Click-through rate (CTR) is not a confirmed, direct ranking factor.

But here's the reality:
The better your organic click-through rate (CTR), the more people will click on your Google listing. And the more traffic you'll bring to your pages.

CTR is a simple metric that shows the percentage of people who click on your page after seeing it in the SERP – the higher you rank, the better.

 

12. User Engagement

User engagement metrics include data such as bounce rate, average time on page, session duration, and pages per session.

All of these should be analyzed in the context of your company and your goals and evaluated as potential KPIs.

 

How do you define the right KPIs?

It's a waste of time to collect all available metrics at once. You should select individual KPIs based on your project goals. Below are the most important criteria to consider when choosing performance indicators to evaluate your SEO results:

  • Define your goals. What do you want to achieve? If you want to attract more visitors, state a goal such as increasing the number of visitors by 30% by the end of the year.
  • Set your budget. Determine the amount you can spend on SEO before you begin.
  • Choose the right tracking tools. Are you ready to purchase established monitoring tools? Do you use Google Analytics or CRM systems? Automate the tracking process to save time and obtain comprehensive reports.

 

Tools for measuring Key Performance Indicators

KPI tracking tool

There are various tools for measuring the most important performance indicators (KPIs) for digital marketing activities. Reporting tools such as... Whatagraph They provide detailed data on website traffic, user behavior, and conversion rates, which marketers can use to track their progress and identify areas for improvement. Google Analytics and Google Search Console are also frequently used to measure website traffic and monitor search engine performance.

Furthermore, SEO tools such as Ahrefs and SEMrush These tools provide a detailed analysis of a website's backlinks, keywords, and competitors, helping marketers optimize their search engine ranking and visibility. They offer a wealth of data and insights that can help in aligning digital marketing strategies and improving overall performance.

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