KPIs, or Key Performance Indicators are a set of metrics used in many areas of your company to measure the performance of various strategic decisions and set a clear framework for analysis.
KPIs are essential: they're a clear-cut reflection of the relevance of your company's strategic decisions. They should provide all staff clear goals and objectives. Published internally on a regular basis, they serve as reference metricsand help everyone push and pull in the same clearly defined direction. For all those reasons you should only have a handful of precise, simple and easily measurable KPIs and tie them to clear objectives.
KPIs in the field of internet: web analytics
In the context of web marketing, KPI are used to measure activity and engagement and above all to make the good decisions in terms of Internet strategies.
The goal is to provide management with dashboards allowing them to pilot the whole of online marketing optimization,be it to measure:
the audience of a news website (number of people subscribed to newsletters, number of catalogs ordered, number of filled forms, number of calls to a speficic customer line and subsequent orders, etc))
the efficiency of a e-commerce website (conversion rates, average cart amount, generated sales, etc).
KPI, how to define my web marketing actions?
First you'll need to ask yourself the following questions:
- What is the purpose of my website and what is exactly my strategy?
- How do you define success?
- What steps should be aken to precisely evaluate success
- Would those measures allow me to detect weaknesses or flaws in my business model, or to accurately gauge progress?
For this, try to be very specific. simply saying "sales + X%" or "better reputation" are too vague a set of objectives for you to be able to evaluate success in the future. Rather, you should ask yourself questions such as: "Sell what and to whom?", "With what kind of positioning? For what results?"
2 - Get your team involved
This is certainly the most important factor that will make your indicator a KPI factor: an indicator of the relevance of your strategy.The definition of objectives and appropriate measures must be the result of a group effort which should involve your employees.
3 - Kip it simple
A good indicator should be easy to build, should not involve hard-to-get-at data or cryptic mathematical formulae. Remember that as far as KPI are involved, complexity is the enemy of decision..
4 - Finally, defines your sources of the information
Even in SMEs, it is common to observe subtle differences between the various statistics reported internally. A strategic management tool, KPI should be published from identified, constant and automated source as much as possible.
Kpi now your turn !
Yo have set KPIs that truly reflect your business strategy online.You have determined the target values for each indicator and tracks actions to boost your performance! From this framework, you have all the keys to make the best out of your web analytics tool.
Image Credit: GoogleFrançois