Last week, we talked in-depth about why having proper analytics and measuring tools in place matters to you – the business owner and final decision-maker. Today, we want to dig in a bit deeper and talk about the specific key performance indicators (KPI’s) that can influence those decisions.
In this world of measurement and analytics, there can be a LOT of noise. Honestly, if you WANT to measure and report on something, there is a way to do it. A few years ago, we started working with an organization that was new to us but not new to digital marketing. In our initial discovery meeting, they could not answer a few key questions around the effectiveness of their marketing and key performance metrics. As they started sharing – we quickly understood why.
While they were receiving a monthly report from their previous marketing firm, it was (no kidding) nearly 100 pages long! Additionally, the report took so long to compile each month that they were not receiving it until several weeks after the month-end – in some cases, months later!
This report, while very detailed and packed with data, was not helpful. In fact, they admitted that they rarely even looked at it. It was time intensive for their marketing firm to create, but it did not deliver any value.
As the leader of your organization, it is vital for you to be able to identify the data points that matter most and help your marketing team set the priorities around them. To start, think about your KPI’s as a self-assessment for your company. If you have to give yourself a letter grade, what piece of information do you need to assess that score? Really dig down to those core pieces that tell you if you are going in the right direction. Because while vanity metrics are readily available and can make us feel as if we are accomplishing something, they don’t really tell us if we are moving the needle.
For example: Instead of looking at Facebook likes, look at how many of those likes commented, shared, or went to your website. Develop quantitive goals such as generating 50 leads each month, or predictive metrics that will tell you if you are on track to reach your set goal (metrics like web visits and CRM activity). There are also process and production metrics that provide insights into resources needed for future sales.
Ultimately, select three to five key performance indicators, then have your team develop the measurability and reporting cadence for each. Keep in mind that the measurement should be automated, and the reporting should be in near real-time. KPI’s reported weeks or months after the fact cannot be used to change outcomes.
Make sure that the goals around your KPI’s are SMART (specific, measurable, attainable, relevant, and timely). Think in terms of leading indicators as well as lagging indicators – those pieces that tell you what is coming as well as those pieces that show you how it is going today.
Connect with us if you’d like to chat further; our team of dedicated digital experts would love to help you identify your KPI’s and implement the processes needed to measure and report.