Website hits, downloads, sales or clicks - valid data are invaluable tools when reviewing marketing activities or website performance. Provided you can actually check and analyse the core data properly.
The great advantage of the digital world is the immediate and permanent verifiability of all activities. Through tracking with numerous analysis and reporting tools, changes can be made visible and measures can be monitored for their success. KPIs are crucial for this. Especially in the area of MARKETING and E-COMMERCE or in the analysis of WEBSITES, KPIs are indispensable.
What is a KPI?
The term "KPI" stands for "Key Performance Indicator" and primarily means key figures that can be used to make statements about the performance of a company. However, KPIs not only record key figures, but also place them in a broader context. This makes it possible to see whether the data collected indicate a level of improvement or a need for optimisation.
There are various key performance indicators to measure the success or failure of a company. Which indicators should be used always depends on the respective company and its requirements.
The main objective of Key Performance Indicator Tracking is to identify where there is potential for further optimisation and cost savings. The company's performance and effectiveness can be further increased and progress towards specific and long-term goals of the company can be achieved with quantifiable milestones.
What do KPIs show?
KPI tracking is used by organisations and companies to regularly monitor how successful or effective certain content measures, marketing campaigns or other processes are. Depending on which measure is to be examined more closely, other key figures are used for measurement.
In addition to measuring metrics, Key Performance Indicator Tracking also includes visualising these results in an easy-to-understand format such as charts, dashboards or reports. This makes it easier for companies to find out if they are making progress and in which area. In general, the important KPIs for companies can be divided into the following areas:
- Marketing: Lead generation, online sales, downloads, social interactions, lead generation metrics (future customer/user demand) such as: Registration, newsletter sign-up, sweepstakes participation, etc.
- Sales: revenue growth and target, revenue per user, lead conversion ratio, etc.
- Management: acquisition costs, customer lifetime value, sales target, etc.
- IT: Processing times, Open tickets per employee, Return on investment, Cost overview, Costs vs. turnover, Open vs. processed tickets, etc.
- Purchasing: Compliance Rate, Lead Time, Internal Order Costs, Cost Reduction, Cost Avoidance, ROI, etc.
- HR: absenteeism, overtime, cost of training, cost per new hire, recruitment rate, gender ratio, time to fill, turnover rate, etc.
In addition, every company can and should define and monitor the most important key figures for itself.
What are the KPIs?
Key Performance Indicators offer insights into various aspects of an organisation and can thus be categorised and adapted according to requirements and departments, depending on industries such as HealthCare, Logistics, Retail and IT.
Measurement and analysis of platforms such as FACEBOOK, LinkedIn, Twitter or even entire websites through GOOGLE ANALYTICS or Matomo are also easily possible.
Accordingly, the first step of a successful measurement of your company's key performance indicators is to sort out non-relevant and unimportant key performance indicators. With a clear idea of relevant KPIs, there are several areas that can be improved immediately through accurate measurement and thus quickly contribute to the success of the company.
Crucial is the fact that KPIs can only be standardised to a certain extent. These are sufficient for an initial overview. However, if you want to go deeper, it is necessary to define and present your own meaningful KPIs and derive recommendations for action. These KPIs can be displayed via a separate dashboard.
Why might a KPI dashboard be useful for you?
A KPI dashboard is a virtual interface that measures and summarises the company's key performance indicators. They prepare their results in real time and in a visually clear, appealing way. Key performance indicator dashboards therefore increase the visibility of weak points in the company and it is possible to react more quickly to possible error developments. In addition, KPI dashboards can be connected to industry-standard services from the areas of SOCIAL MEDIA, data analysis, e-commerce, payment transactions and marketing. In the meantime, there are a number of providers such as "Geckoboard", "Klipfolio", "Baremetrics" or "Databox". Of course, it is also possible to create a completely customised dashboard that is completely adapted to the company.
Data is the most important raw material in the digital world. If you know which data are crucial for the success of your company and can interpret them, you have taken a decisive step towards optimising your company. We support you in defining the appropriate KPIs and help you visualise and interpret the indicators using individual dashboards.
Would you like to improve your performance?
Contact us at any time. We will help you with all your questions.