Business Studies

Digital Marketing Topic 8 Q4 Using what you learned from the “Digital Marketing KPIs: How to Choose and Track” topic resource, discuss the key performance indicators (KPIs) an organization might evaluate when determining if an online campaign was successful. Provide specific examples to illustrate your ideas.

ANSWER

Key Performance Indicators (KPIs) an Organization Might Evaluate when determining if an Online Campaign was Successful

Key Performance Indicators

To evaluate the success levels of an online campaign, an organization might decide to use Key Performance Indicators (KPIs). Some of the Key Performance Indicators that may be evaluated include conversion rates, revenue, customers, and vanity Metrix. Notably, the conversion rate is intended to assist organizations that have an online campaign in determining the rate at which orders are received during visits to their website (Muntean, Târnăveanu, & Ion 2016). The conversion rate of orders reflects the number of orders in relation to the number of visitors to the website. Arguably, for an online campaign to be successful, the number of orders must exceed the number of visitors, indicating that loyal customers return and purchase many times.

Also, the total average revenue, average inventory carrying cost, average safety stock, days payable outstanding, forecast accuracy, inventory turns, inventory days of supply, products with more than a specified number of days of inventory, fraction of time out of stock, non-moving stock valuation, and purchase from other source are the main critical KPIs was taken into consideration (Nallusamy, 2016). Notably, Revenue indicators are essential, but as previously stated, you must understand the facts behind your revenue for it to be helpful information. In order to determine if the online campaign has been successful, the organization has to evaluate these revenue indicators, for example, determining whether the average revenue record has continually increased; hence the online campaign can be determined to be successful.

References

Muntean, M. I., Târnăveanu, D., & Ion, A. R. (2016). E-Commerce Performance. Shopping Cart Key Performance Indicators. Informatica Economica, 20(1).

Nallusamy, S. (2016). Overall performance improvement of a small-scale venture using critical key performance indicators. In International Journal of Engineering Research in Africa (Vol. 27, pp. 158-166). Trans Tech Publications Ltd.