How to define KPI’s of a Business by hruthiyh



Get your Website Designed for Google’s Mobile First Index @ ₹ 10,000/GE T Q UO T E



DIGITAL MARKETING, SEO

How to define KPI’s of a Business RAMYA S - MARCH 21, 2018

        2

 Estimated Time : 3 minutes Every organization around the world works with certain goals. In order to form an idea to perform in pursuit of these goals, every business needs measurable indicators called Key Performance Indicators. Choosing the right KPI’s to focus on the goals is the rst step towards measurable improvement. KPI measurement data shows how well the business is performing. Each KPI is di erent for each business, but the idea is one and the same that is to measure important features of the business. Likewise most of the Digital marketers rely on marketing KPI’s to assess their marketing data in an informative and organized way. Moreover, Choosing KPI isn’t really a step by step process; there are a number of things you should always take care of. We being a Digital marketing company in Bangalore have listed some of the factors that will in uence which KPIs you should focus on.

Choose KPIs that are directly related to your business goals

        2

Think carefully and choose which areas of your business are suitable for measurement. Select di erent indicators for di erent levels of management. Beside business goals you should set clear goals for teams and individuals also. Select KPIs for each user based on their objectives and their business responsibilities. When you focus on business goals you should focus on solid gures and make sure your KPIs are aligned with the goals. For example, if you want to improve site tra c by 20% in the next year, then your KPIs should include site tra c, social shares, bounce rates. Four KPI groups to improve your business KPIs can be organized into groups. The four groups that can have big impact on your business are Growth Measures the ability of your team to increase revenue for a xed period of time. Allows you to set and predict realistic revenue objectives. You can develop knowledge of interdependent metrics at each level of your sales team. E

ciency Implemented in Organization to improve the business performance. Reducing wastes and has the right solution to show the performance data e ectively.

Health Speed up receipts by optimising trade terms

For best proportions,balance debt and equity levels To get the best performance balance inventory levels with trade payables Resilience Identify the full replacement value for each asset Reducing nancial risk by increasing asset level. Reducing credit risk by optimising debts levels. These are some of the examples, you can also think of some other that might apply to your business.

Be Acute in your choice of KPIs

        2

KPIs should be speci c enough to inform speci cations. It should keep everyone moving in the same direction. If a KPI is too high level or too uncertain, it can be illuminated in many di erent ways and actioned in di erent ways. Limiting your selection of KPIs forces you to think hard about the KPIs that are truly required to your business. A small number of KPIs you have to focus on, the more you will be focused on them. The more KPIs you have, the more time and money it costs to optimize them.

Select KPIs that are actionable

        2

One of the most important considerationsfor getting actionable KPIs is starting with the end objective in mind and backing out what metrics accomplish this from there. Connect your KPIs to your business objectives. If the circumstances charging the KPI are all out of control, then the KPI can’t be actioned. A solid KPI will provide your business a de nite meaning about your goal performance.

Understand and determine leading and lagging performance indicators

One morestep to choose your KPIs is to know the di erence between leading and lagging indicators. Lagging Indicators– Lagging indicators are typically output oriented. These indicators measure the overall performance of the business and are backward focused. They help to evaluate performance

information which has already been captured. Everything which you can monitor will have lagging indicators. Leading indicators– Leading indicators are input oriented. These are considered as business drivers since they point to the direction in which things are moving. Identi cation of leading indicators is important for every business as far as the strategic plans are concerned.

Pick KPIs that are Alive

        2

Your business isn’t static therefore your KPIs shouldn’t be either. It’s easy to be comfortable with group of KPIs that you depended for extended period of time. Review your reasons for selecting speci c KPIs periodically. Also periodically review your processes for monitoring and acting on your KPIs. Take time to think how critically KPI is key to your business .Don’t lose focus on the metrics that are truly critical to your business.

Know where your money is going

Considering exactly where your money is going can help you in selecting right KPIs for your business. Determine the areas where you are spending your money and then think if these areas are linked to the goals of your business. Then check if a KPI can be associated with these goals. By knowing the direction of the ow of money, you can choose KPIs which can keep a check on your expenses.

Conclusion Most goals are achieved by multiple people in a variety of departments across an organization not through the e orts of a single person. Implementing the Key Performance Indicators more e ectively can gain powerful insights about company performance. Our Digital marketing company in Bangalore always try to implement new techniques to achieve our company goals. We provide various digital marketing services like SEO services, Social media marketing, Email marketing and many more. To know more about our services, visit us @ www.5ines.com

        2

 Total Views : (15)

Sharing is caring! 1

        2

Best Brand Awareness Strategies For Your Business

Characteristic of Great Logos Design

Top 10 content distribution practices to attract organic tra c

How to improve your LinkedIn Pro le in 9 Easy Steps

TAGS | 4 KPI GROUPS TO IMPROVE YOUR BUSINESS, DIGITALMARKETINGBANGALORE, DIGITALMARKETINGCOMPANYBANGALORE, DIGITALMARKETINGSERVICESBANGALORE, KPI OF BUSINESS, ONLINEMARKETINGSERVICESBANGALORE, SEOCOMPANYBANGALORE, SEOINBANGALORE, SEOSERVICESBANGALORE, UNDERSTANDING THE KPI'S OF THE BUSINESS

 0  0 









Ramya S I help start-ups,small & medium sized businesses through Digital Marketing Services, SEO,SMO, Website Design,Development

        2