What is and how do I measure KPI? If that’s your question then we’re here to help you out!
KPI is an abbreviation for Key Performance indicator, it’s more like a USP(Unique Selling Point). The only difference is USP indicates the key selling items from a product selling page while KPI gives the information on which metrics to track in order to understand the required growth of your business. Both of these are required to understand the performance of the respective businesses.
There are multiple parameters through which you can measure KPI for a particular firm. Each differs from one another and every business needs to concentrate on the aspects those fits them the best. So let’s see which factors impacts which area and through which one can concentrate upon where to put their concentration upon.
How do you measure KPI?
Your Presence on the Web:
Your presence on the web is quite important for a few companies but not all. For companies that have a major part of their profits relying upon the online sales, need to have a great online presence. But for a few brands that are already well established and are almost a monopoly in the business, don’t really feel the need to have an online presence. They can make their presence rarely and that’d do for them.
Sources and Regions of Traffic:
The sources of traffic are always important for any website. There are certain regions that enjoy certain kind of products. Not every region has the similar need or the similar desire for the same product. The same is the thing with the sources as well. Sources can be really diverse. A conveyor belt can be used by any industry that deals with a large number of products. The same conveyor belt might not be useful for the small-scale industry. Hence this facilitates for the marketing agents or analyzers to draw to narrow their search down.
This gives a wide idea of where their respective market can have a good growth. One could get a glimpse of which sector has the product been able to attract the most. Hence having a good understanding of the sources and regions of traffic is always essential.
Online campaigns can be of various types. Each area of business has their own set and types of campaigning online. These campaigns can either have a great impact on their sales and services or might just have a little to no recognition. Even though there’s a huge amount of recognition, it’s not always the case that the industry would see huge profits. It depends upon their alignment and relevance with the campaign they’re hosting.
In order to be successful in their campaigning efforts, one needs to put their heart and soul into it and understand the future effects of the same. Will there be any use from it? Will it have some good return on investment? If these factors are not considered then you might just be wasting your bucks.
This one’s one of the most important factors to consider when you want to understand if you’ve made a name for yourself or not. Organic searches are the ones that have been received from the customers voluntarily. They search for your website and then navigate through the contents of the site. This doesn’t always happen. Most of the time, the contents or the inclusions on a website are seen after one has reached to the website through multiple sources or through redirection. Hence, instead of involuntary navigation, if a person navigates voluntarily then the chances of conversion are pretty high. Hence, one needs to keep a track on this metric, especially the small-scale businesses.
Paid searches are essential for the website that think they need to get more viewers than they actually are getting. So, for you to be successful in the market, you need to make a few investments on such searches. In order to be sure, you’re getting the worth of your investment, you need to keep a track on these metrics.
Thought these metrics may not come under KPI, still, this is quite important when you’re in the process of cost-cutting. Every industry needs to cut the inefficient costs in order to put themselves ahead in the race. Cost cutting is one of the next big things that the industries are seeking for. It helps them attract the customers with an affordable product.
The purpose of all these websites, investments and tracking of KPI wouldn’t be required if there’s no conversion. Conversion not only helps the company with the revenue but also attracts a few more prospects. But, these prospects are only attracted, when there’s an efficiency in the work done. So, the company needs to be as efficient as possible.
Conversions keep the organizations going. Conversions are one of the KPI for any organization. This indicator should always be tracked for the better understanding of trends.
The world is running on the social media these days. Nothing is more important than having a brand awareness and what could be a better place for it? Social media has transformed the world in a glance. With the introduction of giants like Facebook, Orkut, Instagram etc., the addiction has gone on to some different level.
Taking advantage of this obsession is what one needs to do if they’d like to have a good brand awareness. Brand awareness through social media is the cheapest and most efficient. There’s a dire need of keeping a track on social media metrics. If it’s a KPI for your business? That’s up too you to decide and it ain’t that hard to figure out.
Here comes one of those factors that’s a KPI for almost every Industry. Return On Investment, widely known as ROI is the basis of any business’s stability. If you’d like to grow in a world of competition you need to have a good ROI. Good ROI not only influences your company’s position in the market but at the same time, it also builds a reputation for your organization.
With a good ROI, better investments can be made for the development of the organization. New products can be launched. Innovation can be brought into action to try out various options. Hence, one needs to keep a track on the return of investment if they would like to grow in their respective fields. If you’d like to have a good understanding of ROI, do read this article for the tips and tricks in generating a good ROI in 2018-19.
Though the KPI can change from place to place and situation to situation, still there are a few of these that applies to almost every industry. Do make your choice correctly for the better tracking of your organization’s improvements.
Go through this to understand through examples and templates.