Widely used in all modern businesses, especially at the marketing level, KPIs make it possible to measure different types of performance in relation to established objectives, and thus make decisions. If they are well understood and especially well-used, these indicators are a real asset for the success of an organization.
Definition of KPI
KPI is the acronym for “Key Performance Indicator“. KPIs correspond to a set of quantifiable indicators or measures allowing a company to measure the effectiveness of its commercial actions and / or marketing actions over time. These indicators therefore offer him a means of assessing his ability to achieve the objectives set, to measure the performance of his actions, to orient themselves optimally to improve his strategies and operations, to create an analytical basis for his decision-making, and focusing on what is most important for it.
KPI management includes both the definition of clear objectives and the monitoring of progress made in relation to these same objectives.
The different types of KPIs
KPIs may vary depending on the activity and needs of the company. Here are the main KPI types:
- Productivity Performance Indicators (Business Resources)
- Quality performance indicators (quality of products and / or services offered)
- Capacity Performance Indicators (maximum amount of products and / or services created and delivered within established)
- Strategic performance indicators (success or not of the company to achieve its objectives)
KPIs can give quantitative information (concrete measures) or qualitative (image and notoriety). They can also be internal (capacity for innovation, employee satisfaction, etc.) or external (brand awareness, customer satisfaction, loyalty rate, etc.).
Examples of marketing performance indicators
There are many KPIs in the field of marketing. For example, it may be to measure the traffic rate on a website (number of visitors, number of pages consulted, traffic sources, etc.), the commitment rate (number of shared pages, comments, likes, etc.), the conversion rate (number of registrations, number of filled forms, number of sales, etc.), the performance of an emailing campaign (opening of emails, number of clicks, average reading time, etc.).
How to establish good KPI marketing?
Each KPI must meet a specific marketing goal and provide accurate information to properly assess progress over the same objective. Here are the major steps to establish good KPI marketing:
- Define a specific objective and state it in the clearest possible way.
- Choosing relevant performance indicators, which will track and measure the performance of this goal, in order to obtain an encrypted measure.
- Set up tracking tools to get the necessary data.
- Recover the data without forgetting to check their accuracy. They must be gathered and then kept together in one place.
- Analyze and process performance indicators.
- Interpret KPI collected in the form of graphics or tables, for example, so that they are easier to understand.
- make a decision with respect to the set goal.
It is important for a company to regularly review its key performance indicators because goals can sometimes change. It will be necessary to adjust its KPIs or that it replaces them if necessary, always according to its objectives.
The benefits of good KPI marketing
Establish good KPI marketing will allow the company:
- to obtain evidence of progress in the direction of the objective.
- to adjust the established marketing strategy.
- to help better decision-maker through quantifiable measures.
- to monitor the effectiveness of its marketing strategies and actions in time.