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3 Important Key Performance Indicators (KPIs) for Online Businesses

After putting so much time, effort, and resources into marketing your online business to prospective clients, you need to know whether you’re on track towards achieving your business goals. This is where key performance indicators (KPIs) come in handy. In this article, we’ll explore three important KPIs you should be tracking.

What Are Key Performance Indicators?

Key performance indicators are simply metrics that help online businesses keep track of their market performance and growth. In other words, KPIs help businesses understand where their marketing efforts are flourishing and where they’re lacking, which in turn, enables them to make more informed marketing decisions.

KPIs to Track

Now that you know what KPIs are, let’s move on. Here are the top 3 KPIs you should track and monitor regularly. They are especially important if you’re a digital marketer or an online business owner.

Website Traffic

Website traffic simply refers to the number of people who visit your website through direct URLs, organic search, referral links, or paid channels within a given period.

Monitoring your website traffic brings many benefits, including helping you to:

- Know the average amount of time visitors are spending on your site.

- Know whether your advertisements have good placement.

- Determine which marketing channels are driving the most traffic to your website.

- Figure out new ways to increase the quality and number of visitors your site attracts.

Bounce Rate

The bounce rate measures the percentage of sessions (website visits) where visitors make only one interaction. In other words, the bounce rate tells you how often visitors leave as soon as they land on your site.

A higher bounce rate usually indicates a bad user experience on your website and may be caused by:

- Poor layout of your landing page

- Low-quality content on the landing page

- Attracting the wrong target audience for your product/service

- Under-optimization of specific pages on your site.

- Slow website loading speed

If visitors are leaving as soon as they land on your site, you need to find out the exact reason why that is happening and fix the problem.

Click-Through Rate

Another KPI you should measure regularly is your click-through rate (CTR). This refers to the percentage of online users who see your ad, post, search result snippet, or inbound link and click on it to visit your website.

A low CTR means that people who are seeing your ads, posts, or inbound links are not persuaded enough to click on them. One way to improve a low CTR is by adjusting your marketing messages and ad copy to make them more enticing to your target audience.

The above are some of the most important KPIs you should keep an eye on as an online business owner or digital marketer. Tracking these KPIs will not only help you measure the performance and growth of your business but prompt you to adjust your business strategy when issues are detected.

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