Posted by Kpis are the best way to evaluate the evolution of digital marketing strategies, because it is quantifiable data that quickly tells you if you are on the right or wrong track.
Many people have difficulty choosing the indicators that best suit their digital actions and therefore their strategies do not end up giving them all the success that they could have achieved.
In this article we will explain in depth what Kpis are, the criteria you must follow when choosing them, their importance within marketing strategies and much more.
What are KPIs?
Actually, KPI is the acronym for what is known in English as Key Performance Indicator or in Spanish Key Performance Indicators.
To be honest, Kpis have always existed in the world of manufacturing companies and are what method and procedure specialists have consistently used to maintain product quality standards.
Basically, it is a series of variables that tell you if something is working or not, thanks to the fact that you already have certain “normal” parameters within a specific sector or a particular business.
A basic example of Kpis:
If you’ve ever had a blood test, you know that by reading the results you can see if certain values are within expected limits, usually indicated by an upper and lower percentile.
In such a way that if your result is within the parameter there was no problem, but if it where the doctor has to take action.
Kpis work the same way, but instead of measuring your health, they measure the effectiveness of your company’s strategies.
What is the function of Kpis within digital marketing?
There are many functions that these key indicators fulfill, because as we have already said, they serve to measure the health or rather, the success that a certain strategy is having, either to invest more in it, correct it or eliminate it.
Here is a list of how you can use Kpis in your business:
- It helps you make strategic decisions in real time, because you can immediately see the evolution of your actions and correct as you go.
- Find interesting relationships, you may not have realized at first that certain actions are connected to unforeseen results. These types of links can only be observed and understood by studying and analyzing variables.
- Demonstrate factually what best suits the tastes of your target audience. There are many examples of strategies that are effective for one business, although not so much for others, and vice versa.
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How to choose the right Kpis for your strategies?
Selecting the most appropriate Kpis for each strategy is one of the most difficult tasks in digital marketing, because it takes time, strategic thinking, and clear objectives.
As you know, key indicators are metrics, but metrics that are directly aligned with your business objectives.
That is the first trick when choosing the indicators, look for them to be directly related to your objectives, what you want to achieve.
The second point would be: identify only those that are related to the “how” to achieve it. In a few words, the actions you will do daily to achieve that goal.
First step, set goals.
The previous step to choosing Kpis is to determine the objectives of your business. For this we suggest using the SMART technique. Which says that a good objective must meet the following characteristics:
S: Specific, it should only refer to a single purpose.
M: Measurable, you should be able to assess your progress.
A: Achievable, it must be feasible in terms of time and available resources.
A: Realistic, it should be something that can truly be accomplished.
T: Time, must have an expiration date to be fulfilled.
Example: Increase brand reputation by 15% during the last quarter of 2020.
Second step, choose related metrics:
Once the objectives have been established, the metrics that are related to them begin to be evaluated.
In the case of our example, they would be:
- Mentions.
- Backlinks.
- Scopes.
- Brand suggestions.
- New followers.
- New visitors.
- Reviews.
- Qualification.
Third step, filter the metrics by choosing the 2 or 3 most important.
The idea in this step is to only choose those variables that really tell you if you are actually meeting the objective, for them simply ask yourself that, does the “such” metric allow me to reach my objective.
In the example, what is desired is to increase the reputation of the brand, of all the metrics listed in step 2, which are the ones that unequivocally indicate that this objective is being met?
The answer is simple, they would be those that have the greatest influence on people and on search engines. Therefore, the Kpis chosen are: Mentions and backlinks. Because they all directly influence the reputation of the brand.
Summary of the post and FAQ about Kpis:
What are KPIs?
They are metrics that serve as key performance indicators to evaluate the achievement of a certain objective. That is, verify if the actions carried out are adequate to achieve it or not.
What are the functions that Kpis fulfill?
The Kpis fulfill several functions but the most relevant are:
- They allow to evaluate the performance of a strategy.
- Helps make links between variables to determine effects.
- It demonstrates whether a certain action is in line with the interests of an audience.
How can Kpis be classified?
There are no default Kpis for all businesses, because each company pursues different objectives, but they can be grouped according to the purpose of the metrics.
Thus, we have that there are 6 groups of Kpis, which are:
- Activity: Measures the interaction of users on a certain platform.
- Scope: Growth of the target audience in your media.
- Engagement: User commitment to the brand and the content it shares, especially on social media.
- Acquisition: Interaction by followers who are loyal to the content and products of the company.
- Conversional those valuable actions that a user performs and that really lead to the achievement of the objective.
- Loyalty: Actions carried out by users who have already converted and continue to prefer the brand.
Conclusion.
What you should keep in mind when choosing the Kpis for your digital marketing strategy are the goals you want to achieve and the tactical steps you will take to achieve them.
From that information, the list of metrics that you create can be quite long but once you filter the variables, you will only be left with the most relevant ones and these are your key performance indicators.