What is a KPI?
In order to effectively use KPI’s we must first understand what they are. KPI stands Key Performance Indicator, and are used as measurements for businesses. Think of a KPI as a measurable goal that a company or organization uses to determine if they are where they want to be as a company. Meeting these measures are very important for the company and reflect the general success of the organization.
A few examples of KPI’s
- A specific % for Return on Investment
- Number of Products sold in a time frame
- A Specific rating on a customer service survey
- A specific bounce rate on your website
What makes a good KPI?
When it comes to creating a Key Performance Indicator, you should always use the S.M.A.R.T goal plan. S.M.A.R.T stands for Specific, Measureable, achievable, realistic, and timely. When creating a KPI they should all fit all five of these areas.
Your KPI should be specific enough that those in your organization know exactly what the goal is. The KPI should also be measureable. “Having an increase in sales” is too general, and nothing will be gained from that. It should also be achievable and realistic. If your company is just starting out, and you’re setting a website KPI of 1000 visitors a month, you may be expecting too much. KPI’s also must be timely. When establishing a KPI, don’t go too down the road, start out in small time increments so that you can start to measure how successful you are at meeting these KPI’s. If you follow those five rules, your company will have great KPI’s to follow.
What’s a good place to start?
If you’ve never used a KPI before, and you have a website, a great place to start is monitoring the success of that website! Whether it’s determining if your website has a bounce rate below 40%, or it’s making sure users are spending at least three minutes on your website, there many important stats that you can use in order to track success! The sooner you start creating effective KPI’s, the sooner your organization will be able to grow and learn!
If you’re looking to start using KPI’s today, and want to find out how you can get tracking on your website, then be sure to check out our Stellar Analytics! It comes equipped with all the tools you need to be able to monitor and create successful KPI’s! To learn even more about the ins and outs of analytics, be sure to Register for our Stellar Analytics Workshop on October 16t!