To business: all about KPI agencies for integrated website promotion
We share insider information, disclose the internal cuisine of integrated website promotion:
We explain which indicators are suitable as key, and which cannot be used and why. Spoiler: There are only two options, and you need to choose one.
We talk about the features of the KPI installation and analyze the real schemes of our agency (with examples of fixes and variable rate calculation formulas).
We spread the truth about the profitability of integrated Internet marketing.
The article will definitely be of interest to other agencies, but it will be more useful for business representatives: our current and future clients.
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Which KPIs are suitable and which are not, and why
Integrated business promotion on the Internet can be estimated by a dozen metrics. However, as a KPI of a digital agency, only two indicators are suitable.
We set (and fix in the contract) the goals for traffic or leads:
The growth of targeted traffic to the site is a prerequisite for attracting new visitors, increasing conversions and recognizing the company.
Increasing the quantity and quality of leads is the basis of sales, revenue, and business profits from online channels.
We do not use other indicators:
Likes, comments, subscribers, views, CTR, CPC and the like metrics are needed only for reporting internal agency specialists. They are secondary in terms of impact on traffic / leads and are hardly interesting to business.
Sales, revenue, profit, LTV and other business indicators cannot be set as KPI, because the agency’s area of responsibility is limited to the site. TexTerra employees cannot interfere in business processes, client-side marketing.
And about why the promotion of positions / requests does not make sense, we have been writing since 2014. The fact is that each search has its own search results, that is, personalized: it depends on geography, interests, history of attendance, and many other factors. Recently filmed a simple and understandable video on the topic.
Why aren’t we promoting search positions?
Features of the selection and installation of key indicators
The choice between two key indicators of promotion effectiveness – traffic and leads – depends primarily on the goals. Usually:
If the business is in greater need of increasing recognition and generating demand, relies on offline sales or a dealer network – we select traffic as KPI.
If the client wants to use the maximum channels for receiving online applications (calls, orders, subscriptions), we set the key indicator.
Despite the fact that we prescribe either leads or traffic in KPI, we must keep in mind that there can be no leads without traffic. Traffic is always the base, the first step. Conversions are already the second.
The fixed fee and the rate for promotion on traffic and leads, in turn, is calculated taking into account factors such as the amount of work, subjects, level of competition, average check.
However, it is impossible to register specific KPIs at the start:
We do not yet know what is with the site, who are the competitors and the target audience, in what state is the market and the company’s reputation, how great is the demand for goods / services and what is its nature.
To give an accurate forecast and subscribe to KPI, you need to work on the project for at least three months: conduct a comprehensive audit of the site, analyze the marketing of competitors, clearly define the target audience, etc.
At the beginning of cooperation, the obligation and the deadline for installing KPI are specified in the contract in this way:
According to the results of the third month of work, the budget of the contract, as well as the volume and list of works indicated in this Appendix, will be adjusted to achieve certain and agreed indicators and goals.
Examples of real KPIs of Texterra agency
KPI option of integrated promotion
Fixed monthly fee (obligatory work on the site)
Variable Rate Formula (Agency Remuneration)
When promoting leads, there may not be a fixed monthly fee, but in this particular example we are dealing with a seasonal business. A fix is needed to avoid this scenario: there are few leads in the off-season → the agency’s fee is small → constant work on the site is violated → marketing and business indicators fall even in the season. For complex promotion, constant work on the site is important: A / B testing, increased conversion, etc.
Profitability of complex website promotion for an agency
There were situations when a client, in the process of long-term cooperation — and a 4–5-fold increase in leads — began to ask himself: “Is it fair to give out many times more money than at the start? Does the agency really provide services for this amount? ”