The Most Important Digital Marketing kpi

Hi

Everyone and so say we want to talk to you about the most important digital marketing KPI that no digital marketer is optimizing for and that’s profitability and so digital marketing KPIs have evolved very quickly over a short space of time it doesn’t feel like that long ago that we were getting excited about impressions and clicks and then all of a sudden conversion tracking came on the scene now that was a game-changer because we moved from optimizing for digital marketing KPIs to optimizing for business outcomes and then over the last couple years and Binvento we fell in love with a metric called robust just to return on adspend and we love that metric because it allows us to talk to our clients like this you spent 10 tails in Euro this month we’ve generated you eighty thousand euro in revenue but what we’re learning more and more is that all adage of revenue is vanity profit is sanity it’s absolutely true and is becoming really vital for businesses to understand how they’re optimizing their marketing for profitability because particularly in retail the competitive landscape is really aggressive and so we’ve been working with our clients very closely can move from Rallis to prowess that’s profitable return on adspend and there’s lots of different ways you can optimize for profitability so I’m gonna talk to you about what we consider to be the three most effective ways to do this number one is we’ve gotten really close to understanding what margin looks like at a product and category level for our clients and when we have an understanding a task and allows us to optimize our bids and our put our budget strategy accordingly and we’re running something like Google Shopping campaigns we can actually include a parameter within the feed the focus is our margin and I know of a sudden we’re able to optimize for profitable products okay that’s really important the second thing we’re doing is we’re taking account of discounting and discounting happens it’s a way of life for a lot of retailers unfortunately q4 is effectively three months of heavy discounting and often times discounting comes at the expense of profit you might win a customer but you might do it profitably well
we have an understanding of what products are discounted again we can factor that into our bidding and our budgeting strategy we can be prioritize products that are heavily discounted that are probably gonna sell anyway the third thing we’re doing is or getting really close to our clients and understanding what products generate the most returns or cancellations and we typically finds that there’s some reoccurring trends on products that have the most returns once we have an idea that we can factor it in to how we bid or how we budget and take account of that so we can put the emphases on products that are least likely to get returns to our customer there by focusing on profitability so if you get close to margin if you understand when discounting is happening and if you understand what products get returned to most you’re in a really good place to start optimizing your digital marketing for a profit best I looked

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