In marketing, as in any other field in which we hope to achieve a particular goal, if we measure our efforts, we can see differences and understand the reason for the variations, and thus act to improve our results based on what you learned in the observation of our actions. That which at first may seem distant or new, is only applied to business the scientific method, based on: observation, measurement and experimentation, to draw conclusions and to validate the hypotheses.
Getting back to business, we have a clear marketing objective ultimately and always sell more, or rather, increase our profits, but it is reached in various ways or strategies: product branding, loyalty, satisfaction, offers prices.
If we talk about an online store or a physical store, it is clear what we mean to sell more, but there are less obvious models. If we talk about a publishing business, whether a magazine, a newspaper, television, blog or network of blogs, the “sell more” will usually get more advertising revenue, and therefore if we sell by impressions, increase our page views and traffic . If you are a television or radio, increase our audience. If we are a paper magazine or newspaper, increase our circulation, etc.. For service firms, revenue generated by the delivery of these services, so you have to grow or the number of service requests, or increase the number of higher cost services. And for that, we need to modify the number of leads (potential customers interested).
In any of these cases, and any other that is yours, we can define paths since the client has nothing to related to us until our client ends up “buying”, is the way it is in which you do through visits to our content, contracting out services, and acquire products.
In this way, from point A to point B, there are a number of key points to vary them data, thus we change the end result, and that is where the metrics and KPI’s are valid.
If we look at any business can draw a lot of data, even overwhelm us with too many of them. The data resulting from a measurement of our metrics and business would help us to take the pulse of what happens daily, sometimes what happens is that some metrics only provide anecdotal information. But when some of these metrics are combined and to look at them and their variation allow us to make decisions that affect the performance of our business, is currently no longer be just a metric, in addition to also become a KPI.
The KPI’s are the Key Performance Indicator, and if detected, have it under control and work on continuous improvement, we will notice the results in our business.
It is advisable therefore to establish our control panel of key performance indicators in order to define the most appropriate strategy, and continuously review these KPI’s to be aware of the changes and to adjust to always get the maximum benefit, regardless of the circumstances we are.
Another day I will make examples of metrics and KPI’s by type of business, sure to be useful to share here.
Do you already use your own control panel with your KPI’s? What more did it cost? What positive experience can extract and share with me?