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!