KPI of internet marketing

KPI are digits

"Our KPI is sales increase", "we need to achieve increase in recognition", "our task - to attract the maximum volume of traffic on our website" - all these KPI are not feasible, or their accomplishment will not bring to the advertiser of that result which is in fact necessary.

KPI – key performance indicators, i.e. key performance indicators, and indicators are always digits therefore the first check which needs to be executed - whether KPI contains specific digits. Digits can be as absolute - to increase traffic volume by 10,000 visitors a day, and relative: reduce conversion cost in a month by 20%.

Volume, price, quality

KPI includes indicators of 3 types: volume, price and quality. If some of elements it is missed, then, most likely, in it and deterioration in indicators according to the results of work will be observed.

The most often found indicators on these types are listed below:

The price is Revenue share CPS CPA CPC CPM CPI.

Volume - the number of orders, clicks, active actions, calls.

Quality - coefficient of conversion, CTR, an indicator of failures, viewing depth, the time spent for the website.

Example: it is necessary to involve 100,000 transitions (volume) in a month from Yandex.Direct at the price no more than 0.3 c.u. (price) with an indicator of failures no more than 30% (quality).

KPI is a minimax task. Put borders on each indicator!

In terms of mathematics - it means that one of indicators of KPI needs to be increased (as a rule, the volume and quality), another - to reduce (as a rule, the price). Such task has a big set of solutions, within the set range.

Not to receive one cheap and very high-quality click or it is a lot of expensive clicks - it is necessary to put borders on each indicator.

Example: it is necessary to attract on the website of at least 10,000 transitions at the price no more than 0.5 c.u. with an indicator of failures no more than 20%."

If there is a firm plan - fix one indicator, set the purposes on others

For example, we have a task: it is necessary to receive the price of conversion of 300 rubles, at the capacity of 10,000 conversion a month. For a start define - what is priority and record a priority indicator, determine borders by other indicators (from or to) and try to reduce risks in a different way, for example, diversifitsirovav contractors or sources of traffic.

The mathematician of minimax tasks such is that all 3 indicators cannot be fixed since in Internet advertizing there are a lot of external factors which can influence a situation: level of demand, competition, macroeconomic factors and so forth.

If to fix all 3 indicators, then, most likely the contractor who will work on a task at discretion himself will define main and minor indicators.

What KPI happen?

Generally, all KPI can be separated into 3 groups:

KPI of clique.

Volume - the number of clicks.

The price is CPC.

Quality - an indicator of failures, viewing depth, the time spent for the website.

KPI of conversion.

Volume - the number of active actions (requests, leads, installa, registration, calls, orders and so forth).

The price is CPA (CPL,CPI, CPO).

Quality - conversion coefficient, an indicator of failures after conversion.

KPI ROI.

Volume is Income from advertizing, the number of sales.

The price - promotional costs, CPS.

Quality - an average bill.

How to select KPI suitable for business?

As a rule, the type of KPI depends on type of an Internet resource and business of the advertiser.

On Internet resource types, the following KPI can be applied here:

* the website directory - KPI of clique or KPI of conversion.

* the information website - KPI of clique with a figure of merit - viewing depth.

* the selling landing page - KPI of conversion.

* online store - KPI of conversion or ROI.

If to speak about business type, then for determination of KPI it is important to understand - whether business is on-line (more than 50% of income come from online of active actions) or offline (more than 50% of income come from offline active actions).

For business online KPI of conversion in the form of actions on the website or ROI, for offline - cliques or conversion, in the form of calls to office from the website most often meets.

Whether instruments of tracking allow to make independently decisions?

That it is autonomous to contractor to make decisions for accomplishment of KPI, accomplishment of the following requirements to the system of tracking is necessary:

* efficiency. Data should be available at least daily, and ideally - online.

* analytics to the level of promotional materials. There has to be an opportunity to estimate cost.

* a ratio of these systems of tracking with real statistics on sales of the advertiser, as you know all counters consider on an own algorithm.

How to deliver KPI if "counters lie"?

For a start it is necessary to be defined that means "counters lie"? As a rule, it means that data of counters (the systems of tracking), do not match data from an internal system of accounting business - indicators.

The first that needs to be understood - how many systems of tracking do not install - their indicators will always differ from each other. Therefore it is important to understand the nature of these differences is the "natural differences" connected with features of an algorithm of accounting of the system of tracking or an error.

It is possible to define it by Excel, using function correlation (KORREL).

For this purpose it is necessary to unload in Excel of 2 compared data spans from the different systems of tracking, for example, sales volume according to Google Analytics and by data 1C-Bitrix and to apply the KORREL function to ranges.

If the received indicator more than 90%, means it is possible to put KPI, having applied adjustment coefficient. For calculation of this adjustment coefficient it is necessary to count the relation of average values for the period (the volume, the price, quality) the friend on the friend according to two systems of tracking.

Whether the contractor is interested in accomplishment of KPI?

Before delivering KPI to the contractor – check whether really the contractor is interested in his accomplishment. Many platforms pay the commission to the contractors, and its size differs depending on with what platform or the system of advertizing works. The scheme of work with the contractor should be such is that at distribution of the budget between platforms (media planning) the contractor was guided first of all by influence of this or that platform on KPI, but not the size of own commission from the platform.

Example: sometimes contractors use the scheme of work for result at which the size of the commission of the contractor depends on that - as far as will reach KPI (result based pricing)."

And to you sbych KPI.

What will be if KPI is not reached?

Certainly, motivational schemes for payment for the services of the contractor - it is good, however it is also desirable to provide in the agreement situations when KPI is not reached. What will be lost by the advertiser in such situation, he, most likely, well represents, it is important to understand, the contractor also should understand the losses in case of non-performance of KPI.

Example: financial liabilities of the contractor within his remuneration which arise if KPI is crucially not executed, other option – payment for final actions can be stated in the scheme of work with the contractor – leads, in this case all risks of price fluctuation are born by the contractor.

Bolshov Alexander, chief executive of the Registratura.ru Internet agency