KPI is a highly relevant metric for measuring the performance of a strategy and management processes. The Key Performance Indicator can also be known as a Key Performance Indicator and Key Success Indicator.
KPI comes from the acronym in English for Key Performance Indicator, that is, Key Performance Indicator. It is a way of measuring whether an action or a set of initiatives is effectively meeting the objectives proposed by the organization.
There are thousands of indicators that can be measured. We are at a time when the flow of information is immense and constant! The central point is knowing how to choose which indicators are to be measured.
A KPI can be a number or a percentage.
If you want to measure how many pages a visitor saw on the blog that you created for your company during a visit, you will have a number (3 pages per visit, for example). The rejection rate for a page on your blog is a percentage – like 70%.
To make learning even easier, we made a complete video explaining a little more about KPIs.
How to choose a good KPI?
A KPI needs to be relevant to your goal. If you want more visitors to your blog, tracking the average price of your customer’s purchases within e-commerce is not interesting (not now, at least).
KPIs are intrinsically linked to objectives for a very simple reason: they are the ones that measure the performance of each objective.
Know which wrong indicators show wrong performances. So, you may have the impression that you are doing very well, but in fact, you are not – and vice versa!
To facilitate this choice, we have listed 5 characteristics of a good KPI.
Availability to be measured
It seems obvious, but it is the truth! To choose a primary KPI, it must be available, so that it can be measured and analyzed correctly. For example, you can only quantify leads after you start generating them.
Importance for the base of the business
The KPI shows that your strategy is paying off and that the main objective is being achieved.
If your business grows and sells more, the KPI should show you that you are really growing and selling more.
One of the biggest mistakes in choosing KPIs is choosing vanity indicators, that is, numbers that do not show any results but that make the Marketing team happy.
Primary indicators such as comments, likes, and shares on social networks do not show concrete results; they just seem important. Focus on what really matters!
Help with smart choices
Data and information are the basis of good choices. Your primary key performance indicator needs to help you make smart choices.
What good is having good data if it is not the basis for choosing the best path for your company?
The KPI needs to be measured constantly, as it is this monitoring that allows us to understand what works, what doesn’t, and if the ROI is interesting.
Choose KPIs that can be measured periodically and that helps you make periodic decisions.