what the company needs, what goals you are working towards
Posted: Tue Feb 11, 2025 4:16 am
Are you developing a digital marketing strategy for your website? If your answer is yes, this post will be very useful for you to understand what KPIs are, what they are used for and how to apply them to your strategy.
If you already know about KPIs and their importance, you might be interested in the end of this post, where I will tell you how to identify those that best fit your business plan and which ones are the most used in digital marketing .
What is a KPI
KPI or Key Performance Indicator is a unit of measurement that functions as a management indicator. KPIs are metrics used to identify the performance of a certain action. More specifically, they allow us to quantify and qualify the results of a marketing strategy based on the objectives set during the planning process.
In a constantly changing context, it is essential to periodically compare the results of our work. The objective of this task is to know if our actions bring us closer to the goal or if, on the contrary, the outlook is negative. So if we are not obtaining the desired results, KPIs will help us detect errors in time so we can change course and reformulate the strategy.
These management indicators are grouped into dashboards that include the most important indicators for the company. Through this graphical representation, we can concentrate and visualize all the information on the performance of the previously designed marketing plan.
Characteristics of KPIs
In order to help you better understand what KPIs are, let's look at their main characteristics.
They are measurable: being metrics, they are measurable in numerical units.
They are quantifiable: since they can be requested, they can be quantified. For example: if we need to measure monetary units, we could quantify them in the currency in question, such as dollars or pesos.
They are temporary: KPIs are characterized by being able to be measured over time. We can choose to analyze them weekly, monthly or annually.
They are relevant: as their name in English indicates ( Key Performance Indicator ), the word key refers to the fact that it is a key indicator for managing the performance of a marketing strategy. Only the most relevant factors for the company are measured.
They are specific: when measuring, it is necessary to be very specific and focus on a specific aspect. KPIs give us that benefit.
What are KPIs for?
In order to apply KPIs to your digital marketing strategy, it is essential that you understand their usefulness.
KPIs help companies stay informed about the results of their marketing efforts. They can also use these metrics to assess the margin of error and thus control or redirect the strategy in a more successful direction.
Each company must define its own management indicators, given that each business has a different organizational model and objectives. For example, a company that works in industry will have to focus on production indicators, whereas a company that sells products online will have to use other types of key measurements to evaluate its marketing management.
Having a clear idea of the KPIs that benefit your company is important because they provide:
A system for monitoring and controlling the strategic actions launched.
An aid to analyzing results, whether positive or negative.
The possibility of implementing actions aimed at correcting the course if it is wrong.
A collaboration to identify success stories in order to replicate the actions that led to them.
An aid for making important decisions related to the digital marketing sector.
Advantages of using KPIs in your marketing strategy
KPIs offer a simple, reliable and objective measurement. This is possible, to a large extent, thanks to the advancement of tools related to new Information and Communication Technologies (ICTs), such as databases and automation systems. Unlike traditional and analog resources, KPIs propose a much less tedious and complicated system.
Nowadays, there are many analysis tools that specialize in measuring all kinds of KPIs, in any activity or sector. In general, this type of software is focused on a certain field of action, so they are very effective, since they use the most appropriate KPIs for each situation. The great advantage of all this is that using KPIs in your measurements makes it easier for you to:
Determine which KPIs best fit your needs.
Define relevant, measurable and objective data for the aspect to be evaluated.
Develop reports that summarize the analysis that resulted from the measurement.
How to use KPIs
In order to create a dashboard containing the KPIs we need to visualize, there are three steps to follow.
Step 1: Define the objective
First of all, you have to determine
These objectives must respond to a set of characteristics known in the indonesia telegram data field of digital marketing as SMART (Wikipedia), which according to its acronym in English, means:
S: Specific
M: Measurable
A: Achievable
R: Realistic
T: Time-Bound
For your strategy to be effective, the goals you set must meet all of these aspects. They must be concrete, quantifiable, realistic and achievable. Finally, it is important to determine the amount of time in which we intend to achieve the proposed objectives because, otherwise, it will be very difficult to evaluate the results.
If you already know about KPIs and their importance, you might be interested in the end of this post, where I will tell you how to identify those that best fit your business plan and which ones are the most used in digital marketing .
What is a KPI
KPI or Key Performance Indicator is a unit of measurement that functions as a management indicator. KPIs are metrics used to identify the performance of a certain action. More specifically, they allow us to quantify and qualify the results of a marketing strategy based on the objectives set during the planning process.
In a constantly changing context, it is essential to periodically compare the results of our work. The objective of this task is to know if our actions bring us closer to the goal or if, on the contrary, the outlook is negative. So if we are not obtaining the desired results, KPIs will help us detect errors in time so we can change course and reformulate the strategy.
These management indicators are grouped into dashboards that include the most important indicators for the company. Through this graphical representation, we can concentrate and visualize all the information on the performance of the previously designed marketing plan.
Characteristics of KPIs
In order to help you better understand what KPIs are, let's look at their main characteristics.
They are measurable: being metrics, they are measurable in numerical units.
They are quantifiable: since they can be requested, they can be quantified. For example: if we need to measure monetary units, we could quantify them in the currency in question, such as dollars or pesos.
They are temporary: KPIs are characterized by being able to be measured over time. We can choose to analyze them weekly, monthly or annually.
They are relevant: as their name in English indicates ( Key Performance Indicator ), the word key refers to the fact that it is a key indicator for managing the performance of a marketing strategy. Only the most relevant factors for the company are measured.
They are specific: when measuring, it is necessary to be very specific and focus on a specific aspect. KPIs give us that benefit.
What are KPIs for?
In order to apply KPIs to your digital marketing strategy, it is essential that you understand their usefulness.
KPIs help companies stay informed about the results of their marketing efforts. They can also use these metrics to assess the margin of error and thus control or redirect the strategy in a more successful direction.
Each company must define its own management indicators, given that each business has a different organizational model and objectives. For example, a company that works in industry will have to focus on production indicators, whereas a company that sells products online will have to use other types of key measurements to evaluate its marketing management.
Having a clear idea of the KPIs that benefit your company is important because they provide:
A system for monitoring and controlling the strategic actions launched.
An aid to analyzing results, whether positive or negative.
The possibility of implementing actions aimed at correcting the course if it is wrong.
A collaboration to identify success stories in order to replicate the actions that led to them.
An aid for making important decisions related to the digital marketing sector.
Advantages of using KPIs in your marketing strategy
KPIs offer a simple, reliable and objective measurement. This is possible, to a large extent, thanks to the advancement of tools related to new Information and Communication Technologies (ICTs), such as databases and automation systems. Unlike traditional and analog resources, KPIs propose a much less tedious and complicated system.
Nowadays, there are many analysis tools that specialize in measuring all kinds of KPIs, in any activity or sector. In general, this type of software is focused on a certain field of action, so they are very effective, since they use the most appropriate KPIs for each situation. The great advantage of all this is that using KPIs in your measurements makes it easier for you to:
Determine which KPIs best fit your needs.
Define relevant, measurable and objective data for the aspect to be evaluated.
Develop reports that summarize the analysis that resulted from the measurement.
How to use KPIs
In order to create a dashboard containing the KPIs we need to visualize, there are three steps to follow.
Step 1: Define the objective
First of all, you have to determine
These objectives must respond to a set of characteristics known in the indonesia telegram data field of digital marketing as SMART (Wikipedia), which according to its acronym in English, means:
S: Specific
M: Measurable
A: Achievable
R: Realistic
T: Time-Bound
For your strategy to be effective, the goals you set must meet all of these aspects. They must be concrete, quantifiable, realistic and achievable. Finally, it is important to determine the amount of time in which we intend to achieve the proposed objectives because, otherwise, it will be very difficult to evaluate the results.