Discover what a KPI is and learn how it can help you measure your marketing results
Posted: Sat Dec 07, 2024 10:40 am
There are thousands of KPIs that can be measured. We are in an age where the flow of information is immense and constant! The key point is to know how to choose which indicators to measure.
Lucas Gabriel
Jan 12, 22 | 10 min read
KPI
Reading time: 8 minutes
A KPI — Key Performance Indicator — is a very relevant metric for measuring the performance of a Digital Marketing strategy and management processes. These performance indicators can also be known as Key Success Indicators.
Do you know what successful strategies have in common? They all constantly monitor the performance of the stocks.
According to Content Trends 2017, 78.1% of turkey email address companies that document their strategy are considered successful. In companies that do not document their strategy, the percentage drops to 25.2%. You can find more data from the survey in the full report.
This tracking is what allows you to determine what is working and what is not. Basically, it is the best way to analyze the results . But this analysis needs numbers!
These numbers are the best way to know if your results are in line with the objectives of your Digital Marketing strategy and if your company is having the desired ROI .
To help you measure these results, we are going to tell you everything you need to know about the famous performance indicators or KPIs.
In this article you will learn:
What are performance indicators or KPIs?
What is the difference between performance indicators and metrics?
How to choose a good KPI?
Why Facebook Likes Are Not Good Core KPIs
What types of KPIs can you use?
How to put it into practice?
What are performance indicators or KPIs?
KPI stands for Key Performance Indicator. It is a way of measuring whether an action or set of initiatives is effectively meeting the objectives proposed by the organization.
There are thousands of indicators that can be measured. We are in an age where the flow of information is immense and constant! The key point is to know how to choose which indicators to measure.
A KPI can be a number or a percentage.
If you want to measure how many pages a visitor viewed on the blog you created for your business during a visit, you'll need a number (3 pages per visit, for example). The bounce rate for a page on your blog is a percentage, such as 70%.
What is the difference between performance indicators and metrics?
This is a very common confusion. KPIs are not the same as metrics, but a metric can become one of the key performance indicators when required.
It sounds confusing, but we'll explain it to you!
KPIs are important indicators for your business and your goals, while a metric is just something to measure . If for some reason this metric becomes relevant to your strategy, it becomes a key indicator. Got it?
The important thing is to understand what can help in decision making within your company. This is the basic premise for choosing any KPI and it is how a metric becomes an indicator.
A key performance indicator should be valuable to the business and help you and your managers make smart decisions .
And that brings us to the next topic!
How to choose a good KPI?
A KPI should be relevant to your goal. If you want more visits to your blog, tracking the average price of your customers' purchases within your e-commerce is not interesting (not right now, at least).
KPIs are intrinsically linked to objectives for a very simple reason: they are what measure the performance of each of the objectives .
Always remember that wrong indicators show wrong performance. So it may seem like you are doing great, but in reality you are not, and vice versa!
To make this choice easier, we list 5 characteristics of a good KPI.
Availability to measure
It sounds obvious, but it’s true! To choose a key KPI, it must be available so that it can be measured and analyzed properly. For example, you can only quantify leads after you start generating them .
Importance for the business base
The KPI shows that your strategy is delivering results and that the main objective is being achieved.
If your business is growing and selling more , the KPI should show you that you are actually growing and selling more.
Lucas Gabriel
Jan 12, 22 | 10 min read
KPI
Reading time: 8 minutes
A KPI — Key Performance Indicator — is a very relevant metric for measuring the performance of a Digital Marketing strategy and management processes. These performance indicators can also be known as Key Success Indicators.
Do you know what successful strategies have in common? They all constantly monitor the performance of the stocks.
According to Content Trends 2017, 78.1% of turkey email address companies that document their strategy are considered successful. In companies that do not document their strategy, the percentage drops to 25.2%. You can find more data from the survey in the full report.
This tracking is what allows you to determine what is working and what is not. Basically, it is the best way to analyze the results . But this analysis needs numbers!
These numbers are the best way to know if your results are in line with the objectives of your Digital Marketing strategy and if your company is having the desired ROI .
To help you measure these results, we are going to tell you everything you need to know about the famous performance indicators or KPIs.
In this article you will learn:
What are performance indicators or KPIs?
What is the difference between performance indicators and metrics?
How to choose a good KPI?
Why Facebook Likes Are Not Good Core KPIs
What types of KPIs can you use?
How to put it into practice?
What are performance indicators or KPIs?
KPI stands for Key Performance Indicator. It is a way of measuring whether an action or set of initiatives is effectively meeting the objectives proposed by the organization.
There are thousands of indicators that can be measured. We are in an age where the flow of information is immense and constant! The key point is to know how to choose which indicators to measure.
A KPI can be a number or a percentage.
If you want to measure how many pages a visitor viewed on the blog you created for your business during a visit, you'll need a number (3 pages per visit, for example). The bounce rate for a page on your blog is a percentage, such as 70%.
What is the difference between performance indicators and metrics?
This is a very common confusion. KPIs are not the same as metrics, but a metric can become one of the key performance indicators when required.
It sounds confusing, but we'll explain it to you!
KPIs are important indicators for your business and your goals, while a metric is just something to measure . If for some reason this metric becomes relevant to your strategy, it becomes a key indicator. Got it?
The important thing is to understand what can help in decision making within your company. This is the basic premise for choosing any KPI and it is how a metric becomes an indicator.
A key performance indicator should be valuable to the business and help you and your managers make smart decisions .
And that brings us to the next topic!
How to choose a good KPI?
A KPI should be relevant to your goal. If you want more visits to your blog, tracking the average price of your customers' purchases within your e-commerce is not interesting (not right now, at least).
KPIs are intrinsically linked to objectives for a very simple reason: they are what measure the performance of each of the objectives .
Always remember that wrong indicators show wrong performance. So it may seem like you are doing great, but in reality you are not, and vice versa!
To make this choice easier, we list 5 characteristics of a good KPI.
Availability to measure
It sounds obvious, but it’s true! To choose a key KPI, it must be available so that it can be measured and analyzed properly. For example, you can only quantify leads after you start generating them .
Importance for the business base
The KPI shows that your strategy is delivering results and that the main objective is being achieved.
If your business is growing and selling more , the KPI should show you that you are actually growing and selling more.