If you have had any contact with a company, you are probably familiar with the term KPI. This blog post will give you a sharp guide on how to implement KPIs in your business.
KPI is an abbreviation for the English term Key Performance Indicatorwhich serves as a measure of a company's activity. KPIs refer to various objectives that the company needs to be able to measure on an ongoing basis in order to assess its performance and whether it needs to be corrected. They can, for example, be based on the company's mission, vision and current business objectives.
KPIs are also established to provide employees with an overview of the company's daily, monthly and annual targets. They provide clear success criteria for each employee's performance and point to possible improvements, which should motivate employees and thus increase productivity.
A KPI can be set in relation to, for example, sales, marketing, customer satisfaction and employee retention. In order to work actively with KPIs, it is important that they are clear and measurable - if they are not, the company has no chance of evaluating whether the work has been effective.
Two types of KPIs are distinguished in the first instance:
There are generally four phases in the work with KPIs:
The company will also typically set out the objectives in more concrete terms. For example, the company may want to increase revenue by 10% in the next financial year, or it may want to increase the conversion rate of visitors from Google by 5%. This is where you will typically go in and work with online marketing and SEO aka search engine optimization.
If you want more examples of KPIs, Dennis Kronborg gives good examples in an article on his blog.
KPI is a term for measurable objectives of a company. They are established to make visible the extent to which an objective has been achieved in areas such as marketing.
KPI is an abbreviation for Key Performance Indicator. In English, we often use the English term.
KPIs are a measure used to assess and evaluate the impact of a job, while providing incentives and motivation for the job.
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