PERFORMANCE-BASED (KPI) PROGRAMS

The ever more sophisticated methods and the growing number of tools applied by online marketing allow us to deliver services that exceed “ordinary” web projects. Performance-based programs unite the best practices of online marketing at the highest possible level. Choosing the most efficient online tool and conversion optimization (through A/B tests) are both fundamental and continuous tasks. The success of a program is measured using a specific indicator called KPI (Key Performance Indicator).

The program develops one or more special variables for basically any type of Internet activity to achieve a certain business goal.

Particular terms:

• Engagement on the website: level of activity on a website
• Traffic Sources: the source of a website’s traffic and the individual ratios of these sources (where do visitors come from?)
• Online Campaigns (CPM, CPC, CTR, CPA): keyword- or interest-based search campaigns
• Social Interactions: social media activity
• Landing Page Conversion Rates: conversion rate, the target channel
• Organic Searches: organic search results ranking
• Mobile Traffic: device-based traffic

KPI is a certain target or an expectation that needs to be reached within the limits of the allocated timeframe and budget. In other words, this indicator measures the factors necessary for success. It helps us focus our attention on the tasks and processes that have been specifically defined to drive the organization toward its targeted scope. Here are a few simple examples of KPI:

1. The owner of a florist shop has recently launched an online bouquet-assembling and delivery service. He started to advertise his page using Facebook ads. It did have a visible effect, but he is not truly satisfied, because the development had cost him a lot. His goal is to achieve rapid growth of traffic on his website before others come up with the idea of offering similar services.
   The owner expects the number of visitors to triple within the next 6 months.
   In this case, the target is to increase the number of active users on his site.
2. A lady offering clothing repairs opens a small shop. She has flyers printed, which she leaves in the mailboxes of the people living in the neighborhood. After a few months, she is still unhappy with the result—she suspects people don’t pay attention to flyers. She would like to advertise online, but she doesn’t want to launch a website for this.
   In this case, the target is to reach the neighborhood’s inhabitants via the Internet.