Category Archives: Marketing
KPI is an acronym for Key Performance Indicator. KPIs are metrics that represent your company performance. The business benefit of KPIs is creating a means to measure how well your business is meeting its operational objectives. What KPIs measures defines how well a business is running.
To select KPIs for your organization consider the following questions to guide your selection process.
- What are the company’s objectives? KPIs need to reflect the objective of the business to be valuable. Start with understand what the purpose of the business.
- What metrics will serve my boss’s or team’s needs immediately? KPIs need to have a natural urgency based on the business performance they are meant to measure. That means understanding what KPIs the boss or management teams needs to access quickly.
- What defines a successful KPI metric? For example, let’s say a bounce rate is a KPI. A high website bounce rate (above 40%) is an indicator of poor website performance. So a bad KPI in this instance is a bounce rate above 40%. Consider this approach, and make sure your team can imagine what a successful KPI should be.
- Is the KPI easily understood by the stakeholders? There may be a few metrics that your team needs to understand, but ultimately before a dashboard is created, the team who will manage that dashboard must appreciate the metrics encountered.
Sometimes other influences can play into a KPI. To see how social media can be a factor, read the post “When KPIs Socialize“.
This video examines an article on the fear of data visualization. Some manager struggle with hoe visualization is deployed. Watch and comment at the All Analytics site, All Analytics YouTube channel, or here at the Zimana blog site.