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10

50 KPI’s to Measure Mobile Marketing

What KPI’s to Choose to Measure Mobile Marketing Effectiveness

No matter what you do in life,  you need to set goals for yourself.  Mobile is no different, only we don’t call them goals, we call them key performance indicators, or KPI’s.

KPI's for mobile marketing

MOBILE KPI’S: Purchases remain the ultimate mobile marketing KPI.

A key performance indicator is a business metric used to evaluate factors that are crucial to the success of an organization or a specific effort related to that organization.

There are many different end result KPI’s to consider.  Obvious ones might be increased sales, increased memberships, or similar.  But, often increased sales figures, especially for luxury items, are not immediately available and even if they are, they may not be an effect of the mobile marketing promotion.  Therefore, early-term KPI’s are considered so that the business can get a more immediate evaluation of the effectiveness of the campaign.

Accordingly, choosing the right KPI’s relies on a good understanding of the right factors for the organization to evaluate.  Such KPI’s will likely vary based on the department doing the evaluating.  What is important to marketing, for instance, may not be as important to the sales or finance departments.

Effective KPI’s are often not financially related, even though increased sales is often the ultimate, and most obvious, outcome of a an effective marketing strategy.

Key performance indicators work best if they are:

  • timely and able to be measured frequently.
  • simple and easy for all involved to understand.
  • team based so that all departments are pulling together for success and there’s no finger pointing later.
  • based on factors that have had significant impact in the past.
  • acted upon and approved by senior management.
  • able to be evaluated and analyzed to lead to future success.

Choosing the right KPI’s for your organization is paramount to evaluating the success of a mobile effort.  Too often, businesses blindly adopt KPI’s that others in the industry like to evaluate and base the success of the program based on it.  An example of a KPI that is often improperly overused in mobile is click-through rate.  Clicks through can be an important KPI, but if the message is misunderstood or exaggerated, it could result in a great click through rate, but poor sales conversion.  Also, a click through on a Mommy blog may not be as valuable as one from a Huffington Post article.

Be sure that your organization starts with the basics, understands the goals of the promotion, and how it plans on achieving them.  The process should be an iterative process that involves feedback from multiple department managers and those implementing the details of the campaign.  Then, the goals need to be understood by all employees who are involved in the process of attempting to reach a particular KPI goal.

With mobile marketing revolution, there are many different KPI’s that you could consider based on the type of mobile marketing effort that you are employing.  Here are a few of the most often used ones.

  • Active users — Usually judged based on daily active users (DAU) or monthly active users (MAU).  These are your best customers and ones you need to learn more about so that you can continue to improve on the product.
  • Ad revenue — Total advertising revenue from the app or mobile website.
  • App downloads — How many consumers have downloaded the app.
  • App revenue — Gross sales from the app or upgrades after a free app download.
  • App reviews — It’s another thing that you need to get off to a quick start with to gain high app store rankings.  The quantity and quality of the reviews matter, so call out some favors when your app first hits the stores.
  • App store rank — The higher you rank in the download lists in the app store, the more likely that you are going to get continued downloads.  It’s why it’s so important to get off to a quick start when you first submit the app.
  • Call tracking — Number of calls generated.  This is often measured by companies by using a unique phone number to track call statistics.
  • Click-through rate — Of the consumers that see your offer, what is the rate of those that are clicking through to the landing page of the offer?  This rate is often inflated based on bots that are doing the clicking.
  • Completion rate — The rate at which mobile video viewers watched until the end of the video.
  • Conversion rates  — The percentage of users, or visitors, that do the action that you are soliciting, such as making a purchase or registering their information.
  • Cost per acquisition (CPA) — How much did it cost the business to obtain that app download, the text message opt-in, or the sale?
  • Cost per click (CPC) — Cost to generate a click through.
  • Cost per install (CPI) — Cost to drive the installation of the app.
  • Cost per lead (CPL) — Cost to generate a lead.
  • Customer satisfaction scores — Usually derived from follow up messaging.
  • Delivery rate — The percentage of text messages that were successfully delivered.
  • Failure rate — Usually an SMS KPI, it reports the number of messages that were unable to be delivered.
  • Frequency — The number of times that the average person has seen your marketing message.  Frequency is certainly not unique to mobile marketing and can be used to compare the effectiveness of a mobile campaign versus a traditional advertising campaign.
  • Gross impressions — The total number of times that the message has been seen, regardless of whether the same person saw it multiple times.  Reach times frequency equals gross impressions.
  • Hits — Its the most basic KPI and has probably been around the longest.  In the dot com boom days, hits, not revenue were the source of the often times ridiculous valuations of companies.
  • In-app purchases — Total sales made while in the app.
  • Items in cart — Average number of products being purchased per order.
  • Keyword tracking —  A great way to track the effectiveness of different promotions for your SMS campaign is to use different keywords for each medium.
  • Leads — The number of consumers that have indicated interest in a product and that are now being turned over to sales or marketing to follow up or continue marketing to.
  • Lifetime value — What a customer is worth to the business over a lifetime.  This is usually matched against acquisition costs to determine if the marketing is cost effective.
  • Lift — Increased store traffic.  Often also called “in-store visits.”
  • Load time — How quickly your mobile website loads.  In the app business, it’s known as “app launch.”  Cutting seconds off of your load time will lead to improvement; people today are not known for being very patient.
  • Loyalty programs — Statistics on the number of customers engaged in a mobile loyalty program.
  • Mobile emails — Percent of promotional emails being read on a mobile device.
  • Mobile traffic — Percent of web traffic coming from a mobile device.
  • New customers — It’s an obvious one, but you can bet the boss is measuring it.
  • Opt-ins — How many customers are agreeing to receive your SMS marketing messages.  Also known as “list growth.”
  • Opt-out rate — What percentage of opt-ins are replying with STOP to be removed from future text message marketing.  If you get a flurry of opt-outs, perhaps you are sending too many messages, or too many irrelevant messages to your database.
  • Organic searches — The percentage of your overall traffic on the mobile website that is generated from search engine clicks.
  • Page visits — Average pages visited per user in the app or on the mobile website.
  • Permissions — How many people that downloaded the app that also registered their personal information.
  • Purchases — How many people bought.
  • Push notifications opened — What percentage of the app push messages are actually being opened.
  • Reach — Total number of unique consumers that your message has reached.  Along with frequency, this is another statistic that can be compared against traditional media.
  • Redemption rate — Number of mobile coupons that were redeemed.
  • Retention rate — It determines what percentage of users or buyers are coming back again to purchase or use the product.
  • Revenue per user (RPU)  — Revenue divided by total users.
  • Session length  — Naturally, a longer session length should indicate greater engagement with an app or mobile website.  If consumers are leaving quickly, it’s probably because they are not getting what they thought they would.
  • Social shares — Social media shares prove the virality of mobile marketing.  More shares means more engagement and free promotion for the organization.  The business is reaching individuals that it never had to pay for!  Plus, the message is so important to the recipient that they’ve taken the time to promote it on your behalf.
  • Subscription rate — What percentage of users purchase a subscription.  This act proves that an organization has a sustainable business model.
  • Time between visits — How long is it taking them to come back on average?
  • Time spent — The IAB believes the average time spent watching your mobile video is the most important KPI for the video category.
  • Traffic to lead ratio — How much traffic does it take to generate a single lead?
  • Unique engagement — Often, customers will use unique URLs or keywords to gauge the effectiveness of specific promotions.  This method makes for an easy way to evaluate results of specific promotions.
  • Usage — Is the app being downloaded and then falling into the app graveyard or is it being used consistently?
  • This is certainly not a complete list of mobile marketing KPI’s, but it’s quite a few.  Choosing the right ones, in advance of the campaign, will allow alignment of all members of the organization to have a common goal when running your mobile marketing campaign.

While immediate and interim KPI’s are certainly an important gauge of the overall success of a campaign, early mobile marketers certainly were too hung up on some of the more short-term ones.  Clicking on a mobile ad and downloading an app are certainly important, but it’s what happens after the click or app installation that really matters.  Lifetime value may be impossible to predict at this early stage of mobile marketing, but in the long run, it’s retention, compared to the cost of acquisition, that matters most.

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