The phrase, "what you can't measure, you can't control" is very important to remember when creating an SEM campaign during the holidays. SEM driven customer acquisition performance can be measured in multiple ways, but in order to do so in a holisitc manner, retailers need a portfolio of key performance indicators, or KPI's. KPI's can be financial or nonfinancial and they will help you determine how successful certain campaigns are and can also help you reach long-term company goals. One question you may ask, however, is "how do I determine what my KPI's will be?"
The following checklist of sample KPI's are ones I think are important to measure, but note that it is not an exhaustive list:
-Profit per click -Revenue per new customer (through SEM)/ Revenue per customer (overall) -Average order value per new customer -Cost per conversion (search)/ cost per conversion (all channels) -Percentage of (converting keywords/all keywords)
What is your opinion of KPI's that are important to measure and how often you should keep track of them?