Key Performance Indicators, KPIs, are vital to any analytics strategy. If you start a project or digital marketing campaign without having your KPIs identified, how will you be able to know if you were able to achieve your goals?
Our team of marketing analytics experts at FoundSM will help you and your digital marketing team identify what KPIs matter to you and help you build a measurement plan to fit your business’s needs.
What is a KPI?
A Key Performance Indicator, KPI, is a measurable or numeric value that shows how effective a company is achieving its targets and key business performance objectives.
When KPIs are set and used by marketing professionals and business leaders, they can provide valuable insights into users and customers. Your company can then make educated decisions to grow faster when they have the data.
Some examples of KPIs are net profit margin, monthly recurring revenue, and sales growth (also called high-level KPIs) but sometimes smaller KPIs make sense like an email newsletter sign up or a video view (also called low-level).
How to Create and Define Your KPIs
Defining your company’s key performance indicators can be tricky and it crucial to make data-driven decisions. That’s why the team at FoundSM will help you define KPIs at the beginning of your project and help define KPIs that will matter to the core of your business.
KPIs need to be defined and aligned with core business objectives and strategic goals. Here are some questions to think about when defining your KPIs:
- What are the pain points?
- What is the desired outcome?
- How will you measure the progress?
- Who is responsible for this outcome?
- How can the outcome be influenced?
- How will you know when the desired outcome is achieved?
- How often should the data be reviewed?
Asking these questions when creating and defining your KPIs will help you when it comes to planning out your Macro and Micro Conversions.
What are Macro Conversions and Micro Conversions?
Macro Conversions are key actions that users make on a website that complete the broader business objectives or primary purpose of your business. These tend to be actions like:
- Make a purchase
- Create an Account
- Requesting a Demo
- Clicking on a sponsored link
- Subscribing to a newsletter
We recommend having only one or two macro conversions for your website so you can really focus on what matters. The more macro conversions you have the more cluttered your measurement plan can become.
Micro Conversions are smaller actions that a user makes on a website that will put them on the track of completing a macro conversion or are highly related to macro conversions. These tend to be actions like:
- Adding items to the shopping cart
- Subscribing to a newsletter
- Scrolling down a page
- Watching a video
- Creating an account
Macro and Micro Conversions are different for each website and are based on their KPIs so it is important to take the time to write out those KPIs. The next step is to start planning out your measurement strategy.
What Should We Be Measuring?
When our team helps you to identify your KPIs, Micro Conversions, and Macro Conversions, knowing what to measure will become easier to identify. Here are some data points you may wish to consider:
Social Media Share
Average Lead Score
Creating and Implementing a Measurement Plan
Once we know what to measure, we can start to create a measurement plan. This measurement plan will include your business objectives, strategies, tactics, and KPIs that will measure the effectiveness of your macro and micro conversions.
Once all of these are set up, this will give our team the insight we need to build out any functionality we may need in Google Tag Manager, Google Analytics, or Google Analytics 360.
We also use Google Data Studio to create any reporting KPI dashboard we may need to show your successes.
Our team of data analysts and marketing analytics experts is here to assist you with the process of defining your KPIs and Measurement Plan.
We can help you to identify which metrics matter most to your business and help you to make educated decisions.
Contact us today to see how our team of marketing analytics experts can help your organization.
Found Search Marketing has a long track record of success with a long list of happy clients who love to refer us business, which we believe is the ultimate measure of credibility and expertise. Basically, we know our stuff, and the companies we work with think so, too.