Every (prosperous) business has metrics for success. They are critical for communicating the defined “standards of excellence” across the board – from the chief executive to the newest team member. If you think about it for a minute, you probably have some Key Performance Indicators (KPI) in some form or fashion. The real question is – are you measuring what matters most to boost your bottom line?
KPIs are a company’s measurable goals that can be used as the foundation to track performances and analyze the effectiveness of its methodologies and strategies. Cost per Lead, Email Marketing Engagement Score, Keyword Performance, and Return on Engagement are just a few examples of data points that can be used to monitor and report on the health and effectiveness of your marketing initiatives.
KPIs should be determined at the top level and then filtered down into more specific goals for each team member in their related department to all be working toward a set of combined goals. For instance, the sales team will be focusing on KPIs related to the sales cycle, lead conversion ratios and estimated values to increase sales activity while finance will be focused on very specific numbers, such as DSO (daily sales outstanding) and GM (gross profit margin). When these two teams are working in conjunction, and are successful, the company will be more profitable.
We’ve provided a KPI Cheat Sheet that will help you “keep it simple”, and provide some great insights for consideration at your next management meeting. We like these because they are predicated on a simple thought – “Are we moving the needle on what moves the top line?” Beginning with questions about engagement, satisfaction, retention and optimization may subsequently formulate new questions, therefore surfacing the next set of KPIs. Using these as building blocks to develop more specific KPIs will result in measureable metrics that will endorse longevity.
This short, but specific, list of KPIs touch on the value proposition that we, at Signet Interactive, aim to deliver to our clients. We believe that marketing should be developed using a holistic approach to obtain the highest return on investment. The Signet Interactive team is a group of forward-thinkers driven to make choices that help clients reach their goals. Thinking ahead is how we function. It’s how we ensure success. We help our clients formulate the questions to create effective KPIs, transforming analytics into actionable ideas.