WHAT IS KPI

KPI stands for an important Key Performance Indicator in which it used to quantitatively assess how far a certain project has reached an important goal. A company must define and use an important Key Performance Indicator that is designed for the product itself or the target client. When selecting KPI, users must distinguish between an operative, strategic, technical, organizational, or financial point of view.

Using KPI or an important Key Performance Indicator, users can track the success in controlling the company. There are several things that can be traced, namely:

• The management of information
• Control or survey function
• The function of navigation

In order to assist in the metric communication between KPIs, users should consider how to categorize KPIs. Easily categorizing and communicating an important Key Performance Indicator for clients is also important. Several ways to categorize KPI are:

• Awareness : Build clients for products or services
• Engagement : Stimulate the engagement with products or services
• Conversion : Encourage the sales and the prospect of a business

Another useful way in categorizing KPI is by “Volume, Quality, Value and Cost” model. This helps users to focus on four real-value measures for SEO, namely:

• Volume : related to unique visitor, how many visits done, page views, and others.
• Quality : related to the spikes in value, duration of visits, and frequently visited pages.
• Value : related to how much the financial value of a visit.
• Cost : This deals with how much it cost to get leads or sales on SEO.

This KPI measures how many visitors visit a website from the result of organic search.

Search Ranking is an important Key Performance Indicator because it correlates with SEO success. After getting a higher ranking, it will reach other goals such as traffic, leads, and conversions.

Search engine visibility shows how often the domain is appeared in search results for high ranking keywords. The visibility score on search engines is very useful in monitoring the initial results of website optimization.

Links have always been considered as the main SEO metric. Backlinks are also one of the most important factors behind the increase in rankings. It means that the SEO strategy must revolve around getting links.

CTR (Click Through Rate) is a performance metric which measures the ratio of clicks on a link to the total number of users who viewed the results of search. By focusing solely on traffic and rankings, many people make big mistakes by ignoring this KPI.

Branded Traffic is a traffic from visitors who search for terms. Brand awareness is very important for users and customers, therefore branded traffic needs to be the main KPI.

This metric measures the percentage of a website visitors. Search engines consider it as a ranking factor without taking any action. Bounce rates are usually in the range of 40-60%. Anything more than that range will be considered irrelevant to the search query.

Average Session Duration is a leading metric that should be considered for measuring user engagement on a website, and is an important factor in KPI.

CPC determines how much you pay for each visitor who comes from the results of organic search. You can calculate this cost using the following formula:

Website traffic / budget

"Budget" is a all the money spent on search engines optimization, including the cost of SEO experts, SEO tools, copywriting, and others.

If the SEO strategy is effective enough, CPC will decrease every month.

ROI (Return On Investment) is a KPI indicator that can be measured for all marketing campaigns. ROI is used to determine whether the net income is worth the money spent for optimizing the website.

Here is the formula for calculating the percentage of your Return On Investment:

(Investment profit - Investment cost) / Investment cost 

This parameter is usually negative at first. However, with the right strategy, we can see positive dynamics in a few months.