KPI is the acronym for Key Performance Indicators . In other words, they are metrics, variables or measurable and quantifiable factors that serve as a reference to measure the performance of the company or our marketing strategy. Therefore, these must be directly related to the different types of specific objectives set out in the strategic plan.
Key performance indicators, also called KPIs, are especially useful because:
They allow the performance of a process to be measured.
They represent a value directly related to a previously set objective.
They are usually expressed as a percentage of achievement of the objective. This helps to quickly iran email list compare with the return on investment of another campaign or another period.
They help you learn and improve business and marketing decision making .
In marketing, KPIs are essential because they help us measure and monitor the performance of our campaigns based on our short- or long-term objectives in a practically automated way. In a digital marketing plan, for example, there is such a large amount of information and data to process that defining marketing KPIs is a sine qua non condition for being able to carry out subsequent analyses of the actions carried out.
How to define a Key Performance Indicator
Before defining the KPIs that will be most useful to us, we must stop and think about the specific objectives we want to achieve. To do this, it is very useful to follow the SMART objectives methodology . This methodology understands that any objective must meet the following requirements:
S ( Specific ): Specific.
M ( Measurable ): Measurable.
A ( Achievable ): Achievable.
R ( Relevant ): Relevant.
T ( Time-related ): Defined in time.
However, before defining smart and specific objectives, we must be clear about our general long-term objective. This global objective will help us determine other minor goals set in the short or medium term. Once we have the rest of the specific or secondary objectives, we must determine which indicators will help us monitor the performance of our actions.
With so much data at our disposal, we must select those KPIs that will help us quantify and evaluate the actions developed in our plan.
To do so, we must take into account that any type of KPI must have the following characteristics:
Quantifiable . The indicator must be able to be correctly quantified and analyzed.
Relevant . It must be closely related and important to both the business and the stated objective.
Decision making . KPIs must contain valuable information that helps to understand the situation of the company and the market in order to act accordingly.
Periodicity . Key performance indicators require continuous analysis over time. Therefore, in addition to being measurable, they need constant monitoring to help us make daily decisions.
In order to have a clearer idea of these indicators and the form they can take, below we will see some examples of KPIs that will surely be helpful to you.