What is a KPI?
Posted: Sat Dec 07, 2024 9:08 am
What is a KPI?
A KPI ( key performance indicator ), also known as a key indicator or performance meter or key performance indicator, is a measure of the level of performance of a process.
KPIs are metrics (measurable and quantifiable) that numerically canada whatsapp number data 5 million determine a variable (for example: income, expenses, number of visits...) directly related to the objectives set within our strategy or annual marketing plan .
How to design a KPI?
In order to design KPIs I need to be able to answer the following questions about my company.
« Know thyself «
– Greek Aphorism –
Where does my income come from? Analyze the type and weight of income: what type of income is it?
What do I spend money on? Summarize and analyze the typology and weight of your expenses. Are they operational expenses? Personnel expenses? Non-essential? Financial expenses?
Where do I make the most money? Identify which products or services bring you the most income and which ones generate the most expenses.
What is my customer like? Find out how customers behave, how much they spend on average and what type of profile they have. Behavior, average purchase and types of customers.
Are my customers satisfied? The level of customer satisfaction. Are they willing to buy again?
What weight does the digital world have in my company? Corporate website or online store, what weight and importance do they have in your company?
What weight do social networks have in my company? Analyze what weight and importance they have in your daily management or interaction with customers.
By answering all these questions we can extract measurement indicators from each of them.
Requirements that a KPI must meet
Be measurable: In physical, monetary or other types of units.
Quantifiable: It must be able to be materialized.
Periodic or temporary: Limited to a specific period of time.
Specific: It should address a single aspect, not several.
Relevant: It must be a factor that really influences the business model.
The KPI is born from the Marketing strategy
We cannot forget that what is really important for a KPI to work is that it must come directly from the company's marketing strategy. It must be in line and maintain coherence.
Once the KPI data has been obtained, it must meet the following criteria:
True: All data referenced by the KPI must be true, consistent and credible.
Accessible: All information referred to by the KPI must be easy to extract and easy to consult.
Automatic: All data referred to by the KPI must be automated through computer programs such as SAP, Navision, Sage…
Available: All data referenced by the KPI must be available at the time it was established.
What is a KPI for?
In marketing, KPIs are vital for a professional's performance. KPIs give a real picture of the state of the business and allow us to measure and quantify what is really essential.
Control: System for controlling and monitoring the actions launched and the work carried out.
Correction: Possibility of applying corrective actions for deviations from the indicators, both positive and negative.
Understanding: Helps in understanding failure and success, Why has nothing been sold this week?
Improve: They help you learn and improve business and marketing decision making.
A KPI ( key performance indicator ), also known as a key indicator or performance meter or key performance indicator, is a measure of the level of performance of a process.
KPIs are metrics (measurable and quantifiable) that numerically canada whatsapp number data 5 million determine a variable (for example: income, expenses, number of visits...) directly related to the objectives set within our strategy or annual marketing plan .
How to design a KPI?
In order to design KPIs I need to be able to answer the following questions about my company.
« Know thyself «
– Greek Aphorism –
Where does my income come from? Analyze the type and weight of income: what type of income is it?
What do I spend money on? Summarize and analyze the typology and weight of your expenses. Are they operational expenses? Personnel expenses? Non-essential? Financial expenses?
Where do I make the most money? Identify which products or services bring you the most income and which ones generate the most expenses.
What is my customer like? Find out how customers behave, how much they spend on average and what type of profile they have. Behavior, average purchase and types of customers.
Are my customers satisfied? The level of customer satisfaction. Are they willing to buy again?
What weight does the digital world have in my company? Corporate website or online store, what weight and importance do they have in your company?
What weight do social networks have in my company? Analyze what weight and importance they have in your daily management or interaction with customers.
By answering all these questions we can extract measurement indicators from each of them.
Requirements that a KPI must meet
Be measurable: In physical, monetary or other types of units.
Quantifiable: It must be able to be materialized.
Periodic or temporary: Limited to a specific period of time.
Specific: It should address a single aspect, not several.
Relevant: It must be a factor that really influences the business model.
The KPI is born from the Marketing strategy
We cannot forget that what is really important for a KPI to work is that it must come directly from the company's marketing strategy. It must be in line and maintain coherence.
Once the KPI data has been obtained, it must meet the following criteria:
True: All data referenced by the KPI must be true, consistent and credible.
Accessible: All information referred to by the KPI must be easy to extract and easy to consult.
Automatic: All data referred to by the KPI must be automated through computer programs such as SAP, Navision, Sage…
Available: All data referenced by the KPI must be available at the time it was established.
What is a KPI for?
In marketing, KPIs are vital for a professional's performance. KPIs give a real picture of the state of the business and allow us to measure and quantify what is really essential.
Control: System for controlling and monitoring the actions launched and the work carried out.
Correction: Possibility of applying corrective actions for deviations from the indicators, both positive and negative.
Understanding: Helps in understanding failure and success, Why has nothing been sold this week?
Improve: They help you learn and improve business and marketing decision making.