Marketing KPIs

11 Key excerpts on "Marketing KPIs"

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  eBook - ePub

  Digital Marketing Strategy

  An Integrated Approach to Online Marketing

  • Simon Kingsnorth(Author)
  • 2019(Publication Date)
  • Kogan Page

    (Publisher)

  The common approach is therefore to use both qualitative and quantitative together. An example of this is to circulate a data collection method such as an online questionnaire in order to gain quantitative data from which to construct a qualitative piece of research. That research would then be gathered from the same participants and the data could tell a more compelling story.

  KPIs

  Key performance indicators (KPIs) are an essential method of measuring the success of your campaign. We will look specifically at this in Chapter 19 . The reason for taking a quick look at this now is to ensure that, when building your reporting and dashboards for your campaign, you align the measures of success with those of the business. We have discussed that there are different business models with different objectives, visions and cultures. These will ultimately dictate what the business KPIs are – and if you are going to ensure that your strategy is accepted by your decision makers and is perceived to be a success then you will need to be shown to be delivering what the company needs to deliver. As well as this consideration you will also need to be agile enough to align with any changes to the company’s KPIs that you may not be expecting. It is entirely possible, and in fact quite common, for a business to change its primary goal, for example, from acquiring a large volume of customers to maximizing profit. This could be due to market conditions, shareholder demands or activity by the competition, amongst many other factors.

  Business KPIs could come in hundreds of different forms such as customer numbers, customer satisfaction, profit, sales, retention and share price – the more top-level metrics that determine the success of a business in a given period.

  Summary

  In this chapter we have looked at your business and how your strategy must align with it. It is crucial to understand this in detail to ensure your strategy is working with, and not against, the existing business model and therefore to give it the best possible chance of success. Even with digital transformation, where the goal is to change the organization, you must still appreciate this detail and align with it. We will discuss digital transformation in Chapter 6

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  Actionable Web Analytics

  Using Data to Make Smart Business Decisions

  • Jason Burby, Shane Atchison(Authors)
  • 2007(Publication Date)
  • Sybex

    (Publisher)

  KPIs are used in Business Intelligence to assess the present state of the business and to prescribe a course of action. The act of monitoring KPIs in realtime is known as business activity monitoring. KPIs are frequently used to “value” difficult to measure activities such as the benefits of leadership development, engagement, service, and sat- isfaction. (From http://en.wikipedia.org/wiki/Key_performance_indicator.) As widely used in the web-analytics arena, the first and last sentences in the Wikipedia definition are the most relevant. Key performance indicators are an excellent strategy to translate visitor activity into the context of a site’s primary business objectives, and KPIs are often used to evaluate otherwise complex ideas by providing a relative framework. In my first book, Web Analytics Demystified, I described the relationship between any website’s business objectives, the activities that visitors engage in to help satisfy those objectives, and the KPIs that could be used to describe relevant activities. In a nutshell: • Business websites exist as a channel to foster interaction between visitors and customers. Given this, there is a series of business objectives the site is designed to support. • Each of these business objectives is achieved as visitors to the site engage in any number of activities. These activities can be as simple as a single link click or page view, or as complex as an ordered series of clicks and page views that compose a multistep process. • For each of these activities, a set of metrics and ratios can be defined to describe the rate at which visitors engage in the activity, the rate at which visitors complete the activity, and a series of heuristic measures for the activity.These metrics and ratios form the basis for the site’s KPIs.

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  Account-Based Marketing For Dummies

  • Sangram Vajre(Author)
  • 2016(Publication Date)
  • For Dummies

    (Publisher)

  Measuring the success of your account-based marketing campaigns is just like measuring any other marketing campaign, except you’re restricting your measurements to key accounts. Your metrics depend on your business goals and the type of campaign you’re running.

  In this chapter, I tell you which metrics to measure for your ABM campaigns. I discuss how to test your message, graphics, and creative content to help drive more engagement within your target list of accounts. I also explain how to review your metrics to know you’re efficiently using every dollar dedicated to your campaigns.

  Setting Key Performance Indicators

  With ABM, the main goal is revenue. You’ve aligned your sales and marketing (“smarketing”) tetvam to focus on one goal: growing more revenue for your company. With the main goal being revenue, it’s important to have key performance indicators (KPIs). The KPIs let you know whether you’re on track to meet your revenue goals.

  The most important KPI is progression of your target accounts. This is measured by using data in your CRM. Your CRM stores all the data on accounts. An account progression is when your account moves from one stage to the next in the account’s journey. From your list of best-fit accounts, do you see them advancing from one stage to the next?

  Your “smarketing” team needs to define what the next meaningful stage or status that these accounts go to, with the ultimate goal of making these accounts your customers. Here is an example of stage progression for your accounts and the associated KPIs.

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  Understanding Social Media

  How to Create a Plan for Your Business that Works

  • Damian Ryan(Author)
  • 2015(Publication Date)
  • Kogan Page

    (Publisher)

  These are all key elements of budgeting for, and building your stats and insights in, mobile. In this chapter we consider these three steps in more detail, including examples. Setting KPIs Before setting your KPIs you need to agree clearly on the objectives of the service. The objectives are usually one or a multiple of the following:

  • Brand building: create awareness among new target segments and remind existing customers about your brand, products and services, including sign-up to Facebook pages and other opt-in engagement programmes.
  • Loyalty: engage with existing customers to buy more of your services and/or more frequently.
  • Driving footfall: get people to your store (or other venue), whether it is online or in a retail store.
  • Transactional: generate purchases from the target audience of the service online or in a store (or a combination thereof).
  • Customer service perception: improve the customer satisfaction and propensity to buy through enhancing the interaction with the brand.

  Each objective can be translated into measurable KPIs:

  • Brand building: audience reach measured through, for example, ad displays, unique site visits, app downloads, video views and Facebook likes.
  • Loyalty: engagement through, for example, sessions per user, time spent, return rate, sharing of content, liking content, sign-ups to opt-in programmes, time spent with a specific product or service.
  • Driving footfall: visits to store, such as the number of customers who went to the online or physical store/venue.
  • Transactional: for example, customers who purchase a product or service can be measured by voucher redemption rate, payments made, conversions achieved.
  • Customer satisfaction: customer feedback of the service, such as app store ratings and reviews, customer survey results.

  Finally, there are also some non-functional KPIs such as average loading time, service uptime, page/app errors and so on. Tools to measure success

  Once the KPIs have been agreed upon, the next step is to agree how they should be measured. Some of the tools are tailored for a specific purpose, such as tracking usage behaviour, attribution, conversion rates, download benchmarking versus other similar apps, etc. There are usually two ways to collect the data and do the analytics: 1) online analytics tools; 2) custom log files and analytic tools.

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  Tourism Marketing for Small Businesses

  • Steven Pike(Author)
  • 2018(Publication Date)
  • Goodfellow Publishers

    (Publisher)

  Tourism Marketing for Small Businesses 222 Key terms Performance measurement Evaluation of the extent to which an objective has been achieved. Marketing performance indicators Measurable markers used to evaluate effectiveness in achieving marketing objectives. Consumer-based brand equity A model for measuring the strength of a brand in consumers’ minds, over time, which analyses brand salience, brand image and brand loyalty. Marketing performance indicators Good management starts with good measurement (Aaker, 1996: 316). Measuring the effectiveness of marketing activities is critical in the management of small tour-ism businesses. Operating with scarce resources requires careful decision making about budget allocation, and therefore a need to monitor the effectiveness of promotional spend. As performance measurement is the evaluation of the extent to which an objective has been achieved, three questions underpin the process: 1 What is the marketing objective aligned with the promotion? 2 What is the current level of performance, in relation to the marketing objective? 3 What performance indicator(s) will be used to evaluate success? As mentioned in 4: Tourism Marketing Planning , performance indicators are measurable markers used to evaluate effectiveness in achieving objectives. The ultimate performance indicator, and the goal of all promotional activity, is level of sales. Sales level indicators are typically the number of paying customers or units sold (e.g. beds, seats), often as a ratio of capacity, and the amount of sales revenue. Case 14.1: Getting sales in an old fashioned way Owen Eagles recently retired from his position as Managing Director of ANZCRO (www. anzcro.com.au), Australia’s most successful wholesaler of travel packages to New Zealand.

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  Your Customers' Perception of Quality

  What It Means to Your Bottom Line and How to Control It

  • Baboo Kureemun, Robert Fantina(Authors)
  • 2011(Publication Date)
  • Productivity Press

    (Publisher)

  Metrics-driven businesses need employees to embrace the numbers. If the CEO and other business leaders identify the metrics that matter, review them regularly in meetings, and highlight cor-porate efforts to improve the numbers, then the company is well on its way to being metrics driven. Listen to leadership and adopt the culture of metrics. METRICS, KEY PERFORMANCE INDICATORS (KPIS), AND CRITICAL SUCCESS FACTORS (CSFS) A metric is nothing more than a standard measure to assess performance in a particular area. Metrics are at the heart of a good, customer-focused process management system and any program directed at continuous improvement. The focus on customers and performance standards show up in the form of metrics that assess your ability to meet your customers’ needs and business objectives. An example of a metric is order acknowl-edgement cycletime . A key performance indicator (KPI) is a metric used to help manage a process, service, or activity. Many metrics may be measured, but only the most important of these are defined as KPIs, and are used to actively man-age and report on the process, service, or activity. There are two types of KPIs: leading and lagging. • A leading KPI is a metric that relates to future developments and driv-ers/causes that can be managed proactively. An example is the number Metrics That Prove the Worth of the Initiatives • 125 of leads referred by affiliate partner campaigns to a certain product (e.g., 10,000 leads monthly referred by campaign C to product P). • Lagging KPIs are metrics that refer to past developments and effects/ results. These indicators reflect history and outcomes of certain actions and processes, and can only be the subject of an autopsy. An example is the amount of revenue generated with a specific product. A critical success factor (CSF) is a factor that must happen if a process, project, plan, or service is to succeed. KPIs are used to measure the achieve-ment of each CSF.

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  The SAGE Handbook of Marketing Theory

  • Pauline Maclaran, Michael Saren, Barbara Stern, Mark Tadajewski, Pauline Maclaran, Michael Saren, Barbara Stern, Mark Tadajewski(Authors)
  • 2009(Publication Date)
  • SAGE Publications Ltd

    (Publisher)

  This broadened definition of the metrics relevant to marketing performance measure-ment has been helpful, as it reflects the reality of the influences on customer purchase behav-iour. However, it has also led to an explosion of choice. Meyer (1998: xvi) claimed that ‘firms are swamped with measures’ and that some have over 100 metrics. This variety makes compari-son difficult between results of different stud-ies (Murphy et al., 1996). A literature search of five leading marketing journals yielded 19 different measures of marketing ‘success’, the most popular of which were sales, market share, profit contribution, and purchase inten-tion (Ambler and Kokkinaki, 1997). This plethora of metrics is damaging to marketing’s credibility among those that do not recognise that marketing is contextual. Firms compete using different strategies, skills, and resources. The metrics relevant to one firm’s approach may not be relevant to another’s. Standardisation is helpful for shared understanding and comparisons across com-panies, but the business context and the need for competitive differentiation will result in a variety of relevant metrics. This is especially true when the market environment is evolving rapidly as a result of new technology, such as is currently the case with social media technol-ogy platforms. Part of the skill in marketing is identifying which metrics will most help with planning and performance evaluation. The competing requirements for standard-isation and insight have led to the creation of ‘dashboards’ (McGovern et al., 2004; Reibstein et al., 2005) that combine the key metrics required to manage the business into a single display. Typically, they provide specific data on the relevant intermediary steps between the marketing activities and the financial returns to the company.

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  How to Measure Digital Marketing

  Metrics for Assessing Impact and Designing Success

  • L. Flores(Author)
  • 2013(Publication Date)
  • Palgrave Macmillan

    (Publisher)

  5 In this sense, the Internet, and more specifically the brand website, is ideally placed to serve these goals. The website is a true marketing hub best able to shape the destiny of brands. Before demonstrating the marketing value of the brand site, we first offer some examples of the use of metrics and quantitative and qualitative KPIs that can measure and evaluate websites. To do this, we distinguish the cases of editorial, e-commerce, corporate, and, of course, brand sites. To begin, we focus transversally, that is, irrespective of the type of site considered (editorial, e-commerce, brand, corporate), on metrics that allow us to understand the awareness and positioning performance of a website.

  Analysis of website SEO performance: metrics and indicators

  Search engine optimization (SEO) is defined as the set of techniques for:

  promoting understanding of the theme and content of one or all pages of a website by search engines, in order to make the site visible in a lasting way, capture the traffic using search engines and acquire an image of authority among users. (www.wikipedia.org )

  In marketing terms, this is expressed by seeking to develop spontaneous (“top-of-mind”) awareness, as well as descriptions – to provide understanding and knowledge of the brand’s products and services – on search engines. This task is, of course, essential. In most countries, Google, still the main source for the majority of users for finding information on the Internet, especially its first page of results (two-thirds of search engine users never go any further), puts SEO expenditure between 3 and 5 percent of advertisers’ Internet spending.

  SEO (apart from the technical aspects of page accessibility by search engine robots that read the content and index it) consists of improving the site’s ranking by working on good keywords to include in pages and on tags (headline, meta-description, subheads, summaries, and in paragraphs), in order to mark the multimedia content and name URLs and thus be able to respond to queries made by users when they look for a product or brand. Thus, the key to SEO is the editorial quality of the site – producing unique content (exclusive and on specific topics) that is relevant (to facilitate its retrieval and circulation) and up to date.

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  Applied Marketing

  • Daniel Padgett, Andrew Loos(Authors)
  • 2021(Publication Date)
  • Wiley

    (Publisher)

  Why are marketing metrics in digital marketing still very unsettled? Do you think the metrics in use today will be the same in 10 years? Chapter Summary 13.1 The Process of Measuring Marketing Effectiveness • Well-executed marketing research and design programs follow a series of steps. • All marketing endeavors should be objective driven. • Tactical objectives, like any other objectives, specify how market- ing managers want the future to look in some way and must be very specific in terms of relevant target markets, the short time periods involved, and the degree of change in whatever variables are being used to measure tactical success. • Metrics for assessing success in meeting goals should be appro- priate and should meet certain straightforward criteria, such as being easily implemented and clearly understood. • Marketing managers should consider how useful data can be cap- tured and efficiently utilized into decision making. • Once data have been collected, marketing managers apply met- rics and interpret the results. 13.2 Measuring General Tactical Success • Marketing campaigns frequently have several tactical compo- nents operating at the same time. In addition to assessing the effectiveness of each part, marketing managers also want to know how the campaign is doing overall. • The first indication many marketing managers consider is sales figures. • The first metric, market share, is defined as the percentage of the total sales in a product category going to a particular brand com- peting in that category. • Relative market share is often used in conjunction with market share when marketing managers want to compare movement in market share for their brands against that of other competitors, often the market leaders. • The third metric, return on investment (ROI) is also a widely used metric of success and very frequently used to measure long- term strategic success.

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  Internet Marketing

  • Debra Zahay, Mary Roberts(Authors)
  • 2018(Publication Date)
  • Cengage Learning EMEA

    (Publisher)

  10. Identify the differences between internet metrics and metrics for mobile apps, social media, and video and give examples of metrics and KPIs. 11. Identify issues involved in obtaining a complete picture of the customer buying process, both on and off the web. Like everything else in digital space, the role of data and metrics has been rapidly evolving. Chapter 4 discussed customer data and the importance it plays in guiding strategy and digital marketing programs. Throughout the book we have emphasized the importance of the insights data can produce in making marketing effective. How- ever, the process is not automatic; the correct metrics must be selected, analyzed, and practical insights derived from them. Digital marketers subscribe to the Quality Management maxim that “What gets measured gets managed.” Producing insights from customer data has always been a difficult process. Four trends have upped the bar even further. 1. The amount of data is increasing rapidly. In numbers that are too big to com- prehend, EMC provides figures that say there were 4.4 zettabytes (a zettabyte is computed as 2 70 bytes, or 1 sextillion) of data produced each year; by 2020 it will be 44 ZB. Much easier to understand—the amount of data is growing by 40 percent each year, doubling every two years. 1 That is a torrent of data! 2. A phenomenon called “democratization of data” has occurred. Infor describes this as “the process of expanding business information and the tools to analyze it out to a much broader audience than traditionally has had access. In most companies, the IT department has long been the gatekeeper of BI and analytical tools, not because of a desire to control information but out of necessity.” 2 That means data and the necessary analytic tools are available to small busi- nesses as well as to all corporate employees who need to use it. In the process, data per se has become less of a competitive advantage—every business has it and tools to use it are available.

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  Project Management Metrics, KPIs, and Dashboards

  A Guide to Measuring and Monitoring Project Performance

  • Harold Kerzner(Author)
  • 2022(Publication Date)
  • Wiley

    (Publisher)

  Otherwise, workers might try to circumvent the targets. ■ Targets may require trial-and-error solutions. ■ Targets must not be established in a vacuum. It must be understood that KPIs are not targets. KPIs represent how far an important metric is above or below a predefined target. Typical targets for a KPI might be: ■ Simple quantitative targets. ■ Time-based targets: measurements made monthly or during a certain time interval. ■ At-completion targets: measurements made at the completion of work packages or project completion. ■ Stretch targets: become best in class or a target that is greater than specification requirements. ■ Visionary targets well into the future: more repeat business from this client. 7 Ibid., p. 129. 146 KEY PERFORMANCE INDICATORS Stretch targets and visionary targets are often a mix of possible and impossible outcomes, with the impossible outcomes providing encouragement. However, stretch targets can lead to the misinterpre- tation of information, as discussed in Section 4.11. Examples of simple quantitative targets include: ■ A single value (i.e., completion of 20 tests). ■ An upper limit (i.e., < $200,000). ■ A lower limit (i.e., > $100,000). ■ A range of values (i.e., $400,000 ± 10%). ■ A percentage of a specific quantity that may be fixed for the project (i.e., scrap is less than 5% of material costs). ■ A percentage of a specific quantity that may change (i.e., planning dollars are less than 35% of total labor dollars). ■ Accomplished milestones and deliverables (i.e., must produce and ship at least 10 deliverables each month). ■ A percentage of a specific activity that may change over the dura- tion of the project (i.e., planning dollars are not more than 35% of total labor dollars estimated). ■ Accomplished milestones and deliverables (i.e., must produce and ship at least 10 deliverables each month). Figure 4.3 represents a KPI target or boundary box. Normal performance is meeting the target ± 10%.

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