What is KPI and why is it important?
Posted: Wed Jan 15, 2025 5:10 am
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 displayed. A bounce rate, for example, could be 60% and a unique visitor is measured by the quantity. Both can be important KPIs depending on the company's goals.
It is important to highlight what is not a KPI? Or what might not be. A metric can become a KPI, but it might not be one either. A metric is anything that can be measured. In other words, a metric is data that may or may not be business to consumer database relevant to your business and your decision making. A KPI is essential to your business. So if a metric becomes essential, it becomes a KPI.
How to choose a KPI
Relevance is the buzzword when it comes to KPIs. But you'll 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're on track to achieve your goals. And if you don't have any 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 be no compromises in decision making.
Another important point is that you can categorize your KPIs, a practice that has been adopted quite often. You can have one primary or main KPI, or even several primary ones. And have secondary KPIs. This can also help with data analysis. But always keep in mind that the primary KPI (or primary KPIs) should always be aligned with the main goal.
What to consider
When choosing a KPI, remember that it should be objective and always be tested. Work with other members of your team to determine if these KPIs are in line with what your business needs to grow.
KPI Examples
As we have already said, it will depend on your objective which will be the primary, secondary, etc. KPIs, but to help you define these KPIs we have listed some that may be important:
Customer acquisition cost;
return on investment;
Cost to direct ;
Conversion rate ;
Leads generated;
Average ticket;
Commitment.
See a list of KPIs that can be secondary and support primary KPIs:
Traffic;
Blog/newsletter subscribers;
Origin of traffic;
Porcentaje de rebote;
Page views;
Tastes;
New visitors.
Of course there are many more. We are just giving a few examples so that those who are just starting out can get an idea of direction and start measuring results.
Don't forget that it is essential to define a KPI and measure it regularly. Also set clear goals and targets so that these KPIs can lead to practical results. Our practice shows that companies that set clear goals and measure their KPIs are often more successful than their competitors.
A KPI can be a number or a percentage, depending on the information that needs to be displayed. A bounce rate, for example, could be 60% and a unique visitor is measured by the quantity. Both can be important KPIs depending on the company's goals.
It is important to highlight what is not a KPI? Or what might not be. A metric can become a KPI, but it might not be one either. A metric is anything that can be measured. In other words, a metric is data that may or may not be business to consumer database relevant to your business and your decision making. A KPI is essential to your business. So if a metric becomes essential, it becomes a KPI.
How to choose a KPI
Relevance is the buzzword when it comes to KPIs. But you'll 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're on track to achieve your goals. And if you don't have any 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 be no compromises in decision making.
Another important point is that you can categorize your KPIs, a practice that has been adopted quite often. You can have one primary or main KPI, or even several primary ones. And have secondary KPIs. This can also help with data analysis. But always keep in mind that the primary KPI (or primary KPIs) should always be aligned with the main goal.
What to consider
When choosing a KPI, remember that it should be objective and always be tested. Work with other members of your team to determine if these KPIs are in line with what your business needs to grow.
KPI Examples
As we have already said, it will depend on your objective which will be the primary, secondary, etc. KPIs, but to help you define these KPIs we have listed some that may be important:
Customer acquisition cost;
return on investment;
Cost to direct ;
Conversion rate ;
Leads generated;
Average ticket;
Commitment.
See a list of KPIs that can be secondary and support primary KPIs:
Traffic;
Blog/newsletter subscribers;
Origin of traffic;
Porcentaje de rebote;
Page views;
Tastes;
New visitors.
Of course there are many more. We are just giving a few examples so that those who are just starting out can get an idea of direction and start measuring results.
Don't forget that it is essential to define a KPI and measure it regularly. Also set clear goals and targets so that these KPIs can lead to practical results. Our practice shows that companies that set clear goals and measure their KPIs are often more successful than their competitors.