KPI (Key Performance Indicator) is an English acronym that can be translated as “indicateur clé de performance” (ICP) in French. A KPI allows a company to effectively guide a marketing campaign, for example, and measure its effectiveness through the use of marketing KPIs.
There are many different types of KPIs, but to keep KPIs meaningful, they should be used in moderation. Using too many KPIs simultaneously can distort the results obtained.
Furthermore, many KPI users only adopt those used by their competitors without considering their own strategies and needs. This common mistake can lead to failure since the management requirements vary depending on the company and its characteristics!
A KPI is a quantitative data point that should be identified before implementing an action or change within a company in order to deduce the potential outcomes of that action and determine the return on investment. Multiple KPIs are necessary to estimate these impacts.
When a KPI does not provide satisfactory estimates of results, the marketing strategy should be updated to achieve the expected objective. KPIs are carefully examined and monitored daily before being recorded in reports or dashboards.
Examples of KPIs for measuring engagement :
Measuring the KPIs of your website or social media channels is crucial for building a strong digital strategic objective. It’s very important to review them regularly, at least once a month, often with the help of tools like Google Analytics. Here are some key KPIs to monitor:
1. Number of Visitors to the Website: This allows you to analyze traffic and represents the number of people who have visited the website. To analyze it effectively, compare it to a specific past period (e.g., month, year).
2. Page Views: This helps you understand which pages of the website are the most viewed, revealing the site’s strengths. For example, on our website, this KPI allows us to determine which blog articles are popular and guide our content strategy.
3. Traffic Sources: This reveals where the visitors to your site are coming from, helping you differentiate between useful traffic sources and those that need improvement.
4. Conversion Rate: This corresponds to the number of conversions (e.g., sign-ups, form submissions, newsletter subscriptions) divided by the number of visits to the site. Analyzing this rate is essential according to your objectives.
By closely monitoring these KPIs, you can make data-driven decisions and continually optimize your digital strategy.
Examples of KPI for your emails
Checking the performance of email campaigns is crucial, and using KPIs is essential for this purpose.
- Open Rate: This is the percentage of emails that were opened in a given campaign. Important factors influencing a good open rate include the sender, subject line, and pre-header.
- Click-Through Rate (CTR): It represents the proportion of emails for which recipients clicked on at least one link. The CTR allows you to check if your email content encourages recipients to visit your website. For instance, the buttons in your emails should be prominent, and the email subject should be engaging for the specific audience you’re targeting. A/B Testing is one way to determine this.
- Unsubscribe Rate: This indicates the percentage of recipients who clicked on the unsubscribe link in your emails. A high unsubscribe rate suggests that you need to review the quality of your emails and ensure you’re correctly targeting them to potentially interested recipients.
- Delivery Rate: This is the proportion of emails that successfully land in recipients’ inboxes rather than their spam folders.
If you want to learn how to use KPIs effectively, DataScientest offers comprehensive training on KPIs as part of its Data Analyst program, including a Business Intelligence module. Business Intelligence is essential for obtaining KPIs and, in turn, for managing business activities and implementing effective strategies for your company.