What is KPI and why is it important?
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Everyone knows nowadays the importance of digital marketing in company strategy. After all, anyone who is not present on social media or has a good optimized website ends up falling behind the competition. At this point, it is not only important to be present (this is a must), but to understand how to measure results It is essential to know what is working and what is not. That’s where we get into the subject of this post: What is KPI (Key Performance Indicator) and what is its importance?

What is a KPI and what is not a KPI

KPIs or key performance indicators are indicators that show us the performance of our channels and campaigns within digital marketing. And they are essential for the strategic planning of your company.

A KPI can be a number or a percentage, depending on the information that needs to be shown. A bounce rate, for example, could be 60% and a unique visitor is measured by quantity. Both can be important KPIs depending on the company's goals.

It is important to highlight what is not KPI. Or what might not be. A metric can become a KPI, but it may not as well. A metric is anything that can be measured. In other words, a metric is data that may or may not be relevant to your business and decision-making. A KPI is essential for your business. So, if a metric becomes essential, it becomes a KPI.

How to choose a KPI

Relevance is the buzzword when talking about KPIs. But you will only know how to define a KPI if you have a clear objective for your digital marketing. After all, the KPI will be responsible for measuring whether you are on track to achieve your goals. And if you don't have goals...

A very important point is to define how often to measure your KPIs. If there is no periodicity, there will be no way to compare the results. And there will also be no compromise in decision making.

Another important point is that you can categorize your KPIs, a practice that has been adopted quite frequently. You can have one primary or primary KPI, or even multiple primaries. And have secondary KPIs. This can also help with data analysis. But always keep in mind that the primary KPI (or primary KPIs) must always be aligned with the main objective.

What to consider

When choosing a KPI, remember that it must be objective and that it must always be checked. Align with other members of your team on whether these KPIs are in line with what your company needs to grow.

Examples of KPIs

As we have already said, it will depend on your objective which will be the primary, secondary KPIs, etc... but to help you define these KPIs, we have listed some that may be important:

  • Customer acquisition cost;
  • ROI;
  • Cost per lead;
  • Rate of conversion;
  • Leads generated;
  • Average ticket;
  • Engagement.

See a list of KPIs that can be secondary and support primary KPIs:

  • Traffic;
  • Blog/newsletter subscribers;
  • Origin of traffic;
  • Bounce rate;
  • Pageviews;
  • Likes;
  • New visitors.

Of course there are many more. We just gave some examples so that those who are just starting out can get a sense of direction and start measuring results.

Don't forget that it is essential to define a KPI and measure it regularly. Also establish clear objectives and goals so that these KPIs can generate practical results. Our practice shows that companies that set clear objectives and measure their KPIs are often more successful than their competitors.

And you, what are you waiting for? Define your KPIs now! Want help? Talk to a Vero Contents expert now!

What is KPI and why is it important?
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