Key performance indicators

1. What are Key Performance Indicators?

A Key Performance Indicator (KPI) is a critical performance metric used to assess the progress or success of a company, project, process, or specific activity. KPIs are quantifiable metrics selected because they are fundamental to performance and the achievement of strategic objectives. Therefore, they are important tools for informed decision-making, providing concrete data on current performance in relation to established goals. They help identify areas needing improvement and measure progress towards predefined targets.

 

2. What KPIs Can Help Your Company?

• Bounce Rate: Measures the percentage of people who have visited the website and immediately left without finding what they were looking for. This can be detrimental as it may negatively impact SEO positioning. Therefore, this KPI analyzes the causes of abandonment and helps evaluate potential reasons to provide a solution to the problem.

• Conversion Rate: Measures the success of a product or service among customers, specifying the number of people who have purchased your product or service.

• Social Media KPIs: We can measure multiple weekly objectives, such as follower growth, engagement according to the audience, or speed of interaction after posting. These indicators evaluate community growth and response to our posts, helping improve our social media strategy.

• Sales or Revenue Generated KPIs: Sales KPIs measure the effectiveness of sales strategies. They include metrics such as total revenue, conversion rate, average value per sale, and customer acquisition costs. These indicators evaluate profitability, efficiency in customer acquisition, and overall sales performance, allowing for adjustments to maximize revenue.

• Customer Satisfaction Evaluation KPIs: Here are two examples of how to measure customer satisfaction:
  • NPS (Net Promoter Score): KPI measuring customer satisfaction and willingness to recommend a company through a scoring question, helping evaluate customer loyalty.
  • Churn Rate: KPI measuring the rate of customer or employee loss within a specific period, helping evaluate retention and stability within an organization.

 

3. Platforms for Measuring KPIs

Nowadays, measuring KPIs with new technology eliminates manual work, avoiding duplicated efforts. Although it may still require some effort, automated platforms simplify the process and reduce the risk of human errors. These tools streamline management without concerns about failures that could occur manually.

• Google Analytics: Website traffic, visitor behavior. (Websites and mobile applications)
• Google Data Studio: Custom reports, integrating data from different sources (Google Analytics and Google Ads).
• Excel-Power BI: Microsoft business analytics tool to create reports.
• Buffer/ Hootsuite: Social media KPIs.
• Hotjar: Tracks and analyzes user behavior on the website, using heat maps and surveys.
• Trello: Can be used for KPIs by assigning goals to cards, organizing them by status or progress, and setting visual deadlines for clear tracking of key performance indicators.
• SurveyMonkey: Can be used to create satisfaction surveys and obtain feedback from event attendees.
• Eventzilla: Allows you to sell tickets and manage subscriptions for events. It also offers reports and data on registrations.