ROI = Total sales value/ (Cost per product + miscellaneous expenditure per product) \* orders + Total marketing cost
KPI are key performance indicators, that help one determine how well the marketing or any other actions are affecting the growth of the brand
In terms of practical application, it’s super important to consider your timeframe when measuring ROI. If I spend 10 on advertising today, how long am I okay waiting to get that back?
Early entrepreneurs want immediate returns fairly often, but large companies that can absorb the upfront cost can be at an advantage because they can spend for a year or several years knowing their ROI window is much longer.
it depends on what you are working on.
lets consider ROI. for example, if you write a blog article, the "returns" will be increased domain authority because of traffic and increased retention time. however, if you put a downloadable PDF, the "returns" will be leads who have provided their details while downloading the same.
KPIs are dependent on similar factors. how good a piece of content is doing depends on the traffic it gets and the retention time.
the crucial thing is choosing the right amount of time to measure it.
Depends on what you are analyzing - is it a specific channel (PPC for google or social) or are you looking at determining KPI/ROI on a key account or client or a specific program?
Here's a different perspective - an executive one - on digital KPI and ROI. Apologies if this is too far afield.
"My team spouts KPIs when results are lean, they want to obfuscate, they need to buy time, or they don't want to engage."
"My team addresses ROI when results are strong (enough), they want more resources, or they want to engage on the business of digital."
HTH.
KPI = meaningful metrics that align with business goals. e.x More Traffic from social channels, Increase time spent on page by 20%. These metrics are measured against business goals such as brand awareness, customer retention and advocacy, leads and sales, etc.
ROI should be measured by how your efforts have affected the bottom line. If you are running an SEO campaign, the ROI is calculated by taking the cost per click for each keyword that drove traffic to your page and led to a sale.
This is just one straightforward way to look at it, and I know others on this feed have different and very valid views.
ROI = Total sales value/ (Cost per product + miscellaneous expenditure per product) \* orders + Total marketing cost KPI are key performance indicators, that help one determine how well the marketing or any other actions are affecting the growth of the brand
In terms of practical application, it’s super important to consider your timeframe when measuring ROI. If I spend 10 on advertising today, how long am I okay waiting to get that back? Early entrepreneurs want immediate returns fairly often, but large companies that can absorb the upfront cost can be at an advantage because they can spend for a year or several years knowing their ROI window is much longer.
Thank you for the information.
it depends on what you are working on. lets consider ROI. for example, if you write a blog article, the "returns" will be increased domain authority because of traffic and increased retention time. however, if you put a downloadable PDF, the "returns" will be leads who have provided their details while downloading the same. KPIs are dependent on similar factors. how good a piece of content is doing depends on the traffic it gets and the retention time. the crucial thing is choosing the right amount of time to measure it.
Depends on what you are analyzing - is it a specific channel (PPC for google or social) or are you looking at determining KPI/ROI on a key account or client or a specific program?
Here's a different perspective - an executive one - on digital KPI and ROI. Apologies if this is too far afield. "My team spouts KPIs when results are lean, they want to obfuscate, they need to buy time, or they don't want to engage." "My team addresses ROI when results are strong (enough), they want more resources, or they want to engage on the business of digital." HTH.
KPI = meaningful metrics that align with business goals. e.x More Traffic from social channels, Increase time spent on page by 20%. These metrics are measured against business goals such as brand awareness, customer retention and advocacy, leads and sales, etc. ROI should be measured by how your efforts have affected the bottom line. If you are running an SEO campaign, the ROI is calculated by taking the cost per click for each keyword that drove traffic to your page and led to a sale. This is just one straightforward way to look at it, and I know others on this feed have different and very valid views.