Sunday, May 7, 2017

Why KPI’s and Metrics are Important


A Key Performance Indicator, or KPI for short, is defined as: “a measurable value that demonstrates how effectively a company is achieving key business objectives. Organizations use KPIs to evaluate their success at reaching targets” (klipfolio.com). in a recent article published by searchenginejournal.com, it goes into depth about important considerations regarding the KPI’s and metrics of content marketing.

Though the article discussed fifteen points, here are a few that I found very important:
  • Be Fluid in Establishing Content KPI’s and Metrics

Depending on what the company is trying to do, not just any KPI or method of using metrics will work. It is important to find some that are most relevant to the business needs and goals. Through being fluid with the way the data is measured, new opportunities may arise that will help in how the business is doing in the present and discovering new tactics for the future.
  • Take Action

Ask yourself the questions that matter the most, which include: are the current actions or goals measurable? How long does it take to express action for this metric? How will this metric influence your probabilities for increasing success? “Your insights show you where a problem or opportunity might exist, and only when you take action will you solve that problem or seize the opportunity” (searchenginejournal.com)
  • Use Common Sense

Often what some companies forget to do is make their KPI’s actionable. It is common for them to set high expectations for they believe their metrics should indicate. Asking appropriate questions such as: “what are the KPI’s you’re focused on? Are they actionable, and have we set the applicable business objectives to the actions we need? Are the right tools in place to measure the actions?”
  • The 10/90 Rule

“Avinash Kaushik, an analytics evangelist for Google, is considered one of the world’s leading authorities for proper analytics strategy and management” (searchenginejournal.com). He came up with the idea of The 10/90 Rule, which indicates that companies should spend 10% of their analytics budget on tools, and 90% on individuals who are able to make sense of all the data. The right brain power can take even the most basic data and develop a plan to not only improve the company but take it to new heights.
  • Don’t Hold Branding & Direct Response Goals to the Same Standards

One of the biggest issues of analyzing the benefits of social and content is when businesses and marketers try to apply direct-response metrics to branding. Though branding goals are important, not all of it should have a monetary value assigned to it. Branding is often considered a hidden gem of content marketing because it is a means of getting them direct-responses while still saving them a significant amount of money that can be used in other areas such as traditional marketing. When it comes to talking dollars and cents, your business needs to hone in on key areas, such as: “what is an actual dollar amount of how much a lead is worth to you? Do you have specific numbers to prove that your efforts in paid display or brand media are working when specific actions are conducted? How would that spending translate to your company’s brand goals for earned media, in particular, the consumption of media?

In conclusion, the KPI’s and metrics of any company should be somewhat centered around the company’s goals. Whether the goal is to foster a better plan of action to enhance the business’ objectives or to come up with creative strategies to involving the content marketing team, the data analyzed can help ensure the company stays on track and is making the most of their money.

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2 comments:

  1. Geissy, good stuff here, it's all about the KPI's, were working with a non-for-profit in Norwalk on this, the 10/90 rule I hadn't heard of before, thanks.

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