Growth Driven Key Performance Indicators

Growth Driven Key Performance Indicators

What Is A Growth Driven KPI (Key Performance Indicator) 

A growth driven KPI is a metric used to help you measure and understand how effective your web strategy is. Having Google Analytics installed on your website can help you analyze what people when they visit your site and more importantly what you can do to improve their user experience.

Before you define a KPI that you would like to measure you need to define the purpose of your website and what you want to achieve. Doing this will help you determine what to measure and what not to measure, 

Understanding What To Measure

A conversion on your website happens when a visitor to your site takes a desired action that you want to measure. It could be as simple as filling out a form to visiting a particular page. The total number of visitors that complete your desired action is called your conversion rate. (More on determining a conversion rate in a minute.)

Two types of conversions that you can measure on your website, micro and macro conversions.

  • Micro conversions are indicators of potential success. Micro conversions lead to macro conversions
  • Macro conversions drive people further down your sales funnel helping your achieve your ultimate goal, a sale.

Examples of micro conversions:

  • Signing up for a free account
  • Filling out a form
  • Downloading a piece of content
  • Viewed a video

Examples of macro conversions:

  • Someone landed on a thank you page after filling out a form
  • Requested pricing
  • Purchased something

Once you identify which micro and macro conversions are important to you, you can decide what KPIs you want to measure.

 Great KPIs Are

  • Not complex – Choose key performance indicators that are easy to understand and take action on
  • Relevant – Make sure they are relevant and unique to your organization
  • Timely –  Make sure that the KPI’s you choose are available and allow you to take immediate action
  • Useful – If they do not provide value to you, they are useless

Examples of Using Growth Driven KPIs 

Let’s say you want to increase website traffic by 50% in the next 12 months.There are several different traffic sources that you can monitor and measure to help you create a strategy and achieve your goal including:

  • Direct traffic – Traffic that types your website’s domain name directly into a search engine’s address bar or arrives from a bookmark.
  • New Users/visitor – Someone who has not previously or recently visited your site. Google tracks visitors by placing a cookie on the user’s computer. If the cookie has expired or has been deleted, Google will count this as a new user/visit. 
  • Organic Traffic – Visitors that visit your website from an unpaid organic search engine results page.
  • Paid Traffic – Visitors that visit your site by clicking on a paid ad.
  • Returning Users Visitors that have returned to your website for various reasons.
  • Referral Traffic – Visitors that come to your site from other sites outside of a search engine result page.

If you want to increase your website traffic by 50% in the next 12 months, you need to analyze how visitors are arriving at your site and create a particular strategy for each.

Here are a few examples.

  • If you want to increase your direct traffic, make sure that more people are aware of your website by promoting it in your email signature, social media sites, and other marketing campaigns
  • If you want to increase paid traffic, create or increase your paid ads on Google, Bing and social networks
  • If you want to increase returning traffic, create remarkable content, provide solutions, make your site easy to navigate and continue to be their go-to source

How To Determine A Conversion Rate

If you want to see how many people fill out a form on a specific page, you would divide the number of people that filled out the form on a particular page by the number of people that visited the page during a specific time frame.

  • The total number of people that took the desired action divided by the number of individuals that could have taken that action equals your conversion rate.
  • 25 people filled out a form on a page / 100 people that visited that page = A 25% conversion rate
  • (25/100 = .25) x 100 = 25%

As you can see implementing a Growth Driven Analytics strategy can greatly improve your chances for success by understanding which of your marketing tactics work and which ones you should abandon!

 

Implementing A Growth Diven Marketing Strategy

Implementing A Growth Diven Marketing Strategy

I hate to state the obvious, but you need to have a clear understanding of your business goals before you create and implement a Growth Driven marketing strategy. If you don’t understand what you want to achieve, how will you how begin to implement and measure it.

For the purposes of this post I will be referring to the four goals I have created below.

  1. I want to increase website traffic by 50% in the next 12 months.
  2. I want to increase followers on Twitter & Facebook by 33% in the next 6 months.
  3. I want to increase my email list by 40% in the next 3 months.
  4. I want to increase e-commerce sales by 20% over the next 6 months.

I have created four very specific goals that I think are attainable. Now, I need a strategy that can help me achieve them. Let’s create a strategy.

Creating a Growth Driven Strategy.

I like to think of my strategy as a tactical road map. When I start thinking strategically I begin evaluating and selecting the best options and solutions that I can implement to help me reach my goals.

I have decided that I want to increase website traffic by 50% in the next 12 months. How will I accomplish that? (Keep in mind these are just examples. You will want to do a bit more research before you commit. )

  • I will start optimizing my web pages with long tail keyword phrases for better search engine results.
  • I will start a pay-per-click campaign with a budget of $15 a day.
  • I will start blogging once a week and share my posts on Facebook and Twitter.

I have decided that I want to increase my followers on social media by 33% in the next 6 months. How will I accomplish that?

  • I will start sharing great content 3 times a week.
  • I will enable social sharing on my blog.
  • I will start contributing and commenting on other industry related blog posts & threads.
  • I will add links to my social media sites in my email signature.
  • I will invite my customers, employees & friends to follow me
  • I will start following key influencers & other industry professionals.
  • I will provide value.

I have decided that I want to increase my email list by 40% in the next 3 months. How will I accomplish that?

  • I will make sure people can sign up on my home page, my about us page and at the end of every blog post.
  • I will ask them.
  • I will give people something of value for signing up for my newsletter.
  • I will make the sign up process easy and less intrusive.

I have decided that I want to increase e-commerce revenue by 20% over the next 6 months. How will I accomplish that?

  • I will make sure I promote my offers on social media.
  • I will use an affiliate marketing program.
  • I will start implementing paid search campaigns & optimizing my landing pages.
  • I will offer special discounts available only available to subscribers of my newsletter.
  • I will build trust and develop relationships with key influencers.
  • I will make sure people know what I do,what I sell and all the services that I offer.

I have given you four goals and a strategy to attain each of them. Now its your turn, feel free to use my examples or create your own Growth Driven goals and strategy.