Hi Digital Marketers! have you been very confused which KPI drives sales? Not to mention what all those “cost-per” results means. What it all means to the business bottom lines. We have came up with a framework at our Digital Agency which is very aligned with Facebook’s research and study. The below framework have been used and have been proven effective for our Digital Agency partners as well.
1. Identify Business Objectives
Let’s be honest often times management aren’t clear about what they want. SALES is not a business objective it is an outcome! An outcome of good objectives. Like Increasing customer loyalty, getting people to know more about our product(awareness). In essence all objectives boil down to three main ideas.
- Awareness – “I want people to know more about us and our products”
- Loyalty – “I want people to come back”
- Behavior – “I want people to consume our products as a … instead of ….”
These are just some examples of many other usecases of good business objectives. OF COURSE all drives sales. Why would we do it if it doesn’t.
2. Turning Objectives to KPI’s
The list below lists down the digital KPIs of different objectives.
|Increase Awareness||Reach and Frequency|
|Loyalty||Repeat Order / CRM Acqusition|
|Behavior Change||Survey Results|
3. Goals and Action Plan
With a KPI in hand, the hardest thing to do now is to set goals and action plan to execute. At this stage best to speak to involved teams and Agencies to make sure that everyone is on board on the Action plan and have a clear view of the necessary tasks and expectations.
Based on the references below Facebook research shows growth in sales are attributed to reach can be up to 169% increase in buyers. In the past we too see a great deal of success in driving reach based campaigns over a period of time to get frequency and consistency.