People often forget the importance of aligning KPI’s with your actual business objectives. One of the biggest challenges in creating meaningful KPI’s is ensuring your metrics support the overall needs of the business. Let’s face it, you can’t measure everything. Focus on the numbers that tell the story of where you’re going. KPI’s can vary depending on many factors such as your business model, your product maturity, the sophistication of your tracking ability, the volume of actions and resources available to evaluate the data.
Many times KPI’s are established based upon readily available data, Traffic, CTR, Conversions, or Cost. While these data points are quite important they are not necessarily the only pieces you should track. Marketing has increased in complexity which requires adapting to your customers and the way you track them. Consumers received information from many points of contact influencing their buying decisions which needs to be considered in your KPI’s.
If you begin with your business objectives first and then determine the most important elements that measure the success of those goals you will ensure meaningful measurements. For example if one of your business objectives is to build brand awareness by driving consumer demand for your product or service then measuring the volume of traffic is a simple KPI. If Social has been a new part of your marketing arsenal and your business objective is to tap into brand influencers or ambassadors you may want to include a KPI for the number of Facebook “fans” or “likes” as well as the number of wall posts.
KPI’s may change over time but their actual meaning should always relate back to your primary goals as an organization.