What are KPIs and Result Indicators in digital marketing

KPI or Key Performance Indicator, translating to Key Performance Indicator, is a method of calculating the performance results of actions taken by a company.

In this way, it can be defined as a management tool, with the aim of monitoring and analyzing the performance of planned strategies. In other words, with KPIs, an organization can understand which measures work or not for their business.

Therefore, the indicators allow a more detailed observation of the processes, to understand whether your company is achieving the defined objectives.

What is KPI?

Indicators are essential within a company's planning and strategies. This way, with appropriate analysis, she can set goals and better understand her data.

Therefore, they can use them in techniques to monitor the performance of a business. When doing evaluations based on metrics, KPIs will present results in numbers or percentages.

For example, in numerical form, a visitor to your website accessed 3 different pages, and in percentage terms, a page on your website had a conversion rate of 35% during a certain period.

However, to improve the process, segmenting the metrics can be of great help. Separating the most general and the most specific within the business.

Cash flow and interest rate churn come into the general metrics part, while conversion rate and cost per lead, are among the most specific.

KPI and Metric, is there a difference between them?

The answer is yes! They are not the same thing, but metrics can prove to be a key performance indicator. While the KPI is aimed at your business objective, the metrics are more linked to measurements.

However, this metric can become an indicator if it ends up becoming important to the strategy. Therefore, you need to focus on deciding what will bring results for your company. Use this as a basis for choosing a good KPI.

Don't forget: the indicator needs to help you and your business in making decisions. Keep this as your focus.

How to define a KPI

Thinking of how a KPI needs to be relevant For your company, defining it is an important part of the process. Indicators are there to calculate the performance of strategies and results, so choosing the right indicator will show the right performance.

There are some important aspects that a KPI must have, some of them are:

• Relevance: a common mistake is choosing indicators that do not add to the result, but “encourage” the marketing team. For example, likes on social networks are not relevant in this part, so pay attention to what matters.
• Measurement: We can't stop talking about this one, after all, a KPI needs to allow analysis and calculation. Indicators that cannot be measured end up being a setback for your business.
• Measurements from time to time: in order to monitor results, and know what is working, a KPI needs to be measured periodically. This way, your company will be able to make better decisions.
• Assistance with choices: An indicator that shows useful data will help you make important decisions intelligently. With a good information base, plans and strategies can be structured more efficiently.
• Be important: the KPI aims to show how your plans are working, and whether your business is achieving its objectives. Therefore, the indicator must accompany your company, showing how much it is growing.

Types of KPI your company can use

There is one huge variety of indicators and metrics, with different aspects and characteristics. Therefore, your team must choose which ones to use, according to the company's objectives.

Within this variety, most can only be analyzed if tests are carried out regularly to check the data.

And, now that you know what a KPI is, let's talk about the categories:

Primary KPIs

Primary KPIs are those found first. They are the ones who calculate the result, and, through information, will tell you whether your company's strategies are working.

We can say that some of the essential data for your objectives is in this part.

This way, they will be placed within the organization's routine, indicating the data considered most important. For example, revenue per purchase, cost per lead, and conversion rate.

Secondary KPIs

The board sector, with supervisors or managers, is generally responsible for these indicators, as they monitor the progress of results in the strategy.

Secondary KPIs have the function of informing whether strategy management is well targeted through testing. In other words, it can be said that they work with support for primary indicators.

We have as an example:

• Cost per visitor;
• Origin of traffic;
• Blog subscribers;
• Average price per transaction.

Reinforcing, the secondary KPIs are there to support the primary ones.

Practical KPIs

The third, but no less important category, is practical KPIs. The marketing campaign manager needs to always be testing and monitoring data on user characteristics. However, the list of indicators here is longer.

Some of them being:

• Pages and visits;
• Bounce rate;
• Landing pages;
• Traffic;
• Page rank;
• Keywords
• Social interactions;
• Most popular content.

And remember…

Pay attention to your business objective, and define which KPI your team will use. With this, you will be able to direct your strategy in a more efficient and agile way.

Focus on data that is involved in the results that your company wants or needs. So, invest in digital marketing. Currently, if you neglect this part, the chance of your business falling behind is huge.

With this in mind, you can access Our site and find out more about the world of digital marketing!