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Do you also fall into these KPI pitfalls?

Do you also fall into these KPI pitfalls?

Every self-respecting online marketer naturally measures the results of his marketing activities, because online is easier than ever before. Or is not it? Because there are quite a few elements that make obtaining the right insights difficult: a complex customer journey across various devices, difficult to calculate lifetime values, offline interactions with your company, et cetera. In spite of that complexity, marketers work a lot and like with often relatively simple KPI. But there are quite a few pitfalls.

Working with KPIs:

To make data clear and keep a finger on the pulse, many marketers work with KPIs. We often already focus on result-oriented KPIs such as ROAS (return on ad spend) CPA (cost per acquisition) or CPL (cost per lead) and that gives a lot more insight than controlling, for example, a KPI as cost per click. Yet this is usually still insufficient to gain real insight into the added value of your marketing efforts. In fact, working with KPIs also has pitfalls, so the risk of a wrong decision is life-size. And that can be at the expense of the result under the line.

KPI pitfalls:

How you should handle KPIs for your business is hard to say, but if you at least try not to fall into the following pitfalls, you reduce the chance that you fool yourself with your data-driven decision ‘.

Pitfall 1: draw conclusions too quickly:

KPIs are useful to use as a means of steering, but it is tempting to treat a KPI as an end in itself and to make decisions on the basis of a single KPI, while that is not always wise. You can see a KPI as a reason to go further research.

Pitfall 2: too much focus on the ROAS (ie turnover)

Where previously the KPI ‘return on investment (ROI)’ was used more, more and more marketers started to use the KPI ‘return on ad spend (ROAS)’ under the influence of advertising platforms. Interesting for the advertising platforms, because the ROAS always looks better than the ROI (ROAS equals ROI + 100 percentage points). The ROAS indicates the ratio between the advertising costs incurred and the resulting revenue: (turnover/costs) x 100% = ROAS. If the ROAS is 100%, the turnover was equal to the costs. It’s best to use a handy KPI to see if you ‘payback’ the advertising costs. The ROAS as a stand-alone KPI does not say much unless you take into account the profit margin on the product or service that you sell.

Pitfall 3: losing the overall ROI

Many marketers focus on the results of separate marketing tools, such as Google Ads, e-mail marketing, social media advertising and SEO. Especially in marketing departments where a different marketer is responsible for the different channels, this danger is lurking. Because the KPIs are assessed separately for each channel, the efficiency of each channel is therefore controlled instead of the overall efficiency / ROI. This also makes it easy to draw a wrong conclusion.

Of course, there are many more risks and pitfalls if you work with data in general and KPIs in particular. Do you have nice additions?


She is a senior research specialist at Rochester NY SEO company who provides local SEO services & affordable logo designing services in Rochester. She is currently performing responsibilities as a senior content writer & to find new content marketing strategies to promote brands online.

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