What are KPIs or Key Performance Indicators?
Web analytics is one of the most complex areas in digital marketing. This is where the so-called KPI indicators or key performance indicators have their main role. Elements of great value equally, both for the commercial team and for the sales team.
Actions or campaigns that serve well-planned strategies must be measured from the beginning. It is very important to monitor and assess your development in terms of feedback, conversions or sales. This provides the possibility of correcting and improving, otherwise it can lead to wasting part of the budget.
What are KPIs?
Paramarketing says that, key performance indicators or key performance indicators are metrics or signals that measure or show results. They are previously defined to know the performance of the actions that will be carried out. They serve to compare, quantify and make decisions. Measuring performance involves defining sales objectives. With set goals, you need to know how campaigns work and how profitable they are.
Although this terminology seems very avant-garde, the truth is that it has been used for a long time. All economic sectors have always tried to improve their productivity. Also the efficiency of services and the process of attracting clients, optimizing work times.
Among the most valued KPIs are sales KPIs. Especially the type of higher-level kpi that determines the cost per lead. Measuring performance involves improving the CRO or optimizing the conversion rate of a website.
Importance of defining key performance indicators
More and more companies are involved in evaluating and analyzing the results of their digital investments. To do this, the goals they set must correspond to the objectives.
Sometimes the failure of some creative campaigns is not because they are bad. Nor that the content is of low quality in many cases. The cause is usually that the trajectory of the campaign is not monitored to favor the phases of the funnel or conversion funnel. In this way capitalization opportunities are obviated and company resources are underutilized.
It is clear that if a campaign is not properly monitored, the necessary adjustments cannot be made to achieve success. Even sometimes, the ground is paved for other competing companies that take advantage of the information they obtain. Knowing what others have done and if it has worked for them is a source of knowledge. They can also appropriate the value proposition or the message that was intended to be communicated.
Test, test and channel
Before launching any campaign, including email marketing or others on different types of social networks, tests can be done. Better to know what results to expect from a few simple strategies that lead to a well-designed landing page.
Ask the audience doing online surveys, see how they react, and even see how they fared with campaigns with similar characteristics to others.
By doing so, smarter decisions can be made. And know at which points more resources should be added to maximize profits or which points to eliminate to avoid unnecessary cost overruns.
Once the data has been collected, aspects such as the importance of price or usage habits can be analyzed. And also the ratings and opinions of consumers.
Most relevant aspects of KPIs
Any company wants to have positive results, and this is often reflected in marketing (kpi marketing) and sales (kpi sales). A complete study must be offered in relation to cost models. And a detailed or detailed analysis of online marketing campaigns. For this, it is essential to define the key indicators carefully and draw conclusions from the efforts made.
The key performance indicators must meet a series of requirements that will allow them to be analyzed over time. They are known by the abbreviation SMART (smart) and are as follows:
Each indicator should collect the most interesting data or aspect about the information to be obtained. Also based on other types of strategic objectives.
We already know that any objective indicator must be measurable to know the evolution. This is the true meaning of KPIs, justifying thanks to metrics and figures.
All the objectives that are raised must be realistic, and they must be able to be achieved in the pre-established time. If the selected KPIs are not realistic, you will feel helpless and uneasy about not meeting them.
You cannot choose thousands of key performance indicators for a campaign, it is better to choose only the most important ones. Those in which the information collected is irrelevant or uninteresting must be discarded.
The indicators must be able to be analyzed on a regular basis. Deliver results on a daily, weekly, monthly or yearly basis, depending on the time period to achieve a goal has been determined.
It should be noted that all of the above will directly influence the ROI or return on investment. Every aspect or detail that we improve will directly or indirectly affect others.
How to define KPIs to meet objectives?
Most platforms and systems for conducting digital marketing campaigns have their own information boxes or dashboards. Through them it is possible to select the appropriate metrics that interest us for each case. It is advisable to give a score to each piece of information regarding its level of importance.
It is also possible to compose dashboards that display information from various applications. For this, additional modules are usually used that resort to their corresponding APIs.
The implementation and monitoring of the appropriate indicators in combined campaigns for different media can be complex. Especially in business models oriented to multi-channel, that is, to attract customers and sell through different channels and media. In these cases, the most advisable depending on the budget, will be to turn to professionals or outsource the service.
In short, the main purpose of KPIs is to help make important decisions that help the sales force. Therefore, they should not be general, but rather specific and aimed at achieving the stated objective. Implementation is a critical part of the process.
Any marketing strategy has to contemplate these seemingly simple concepts. Define and highlight them before carrying out any type of action or digital campaign for your own benefit.