KPIs What are they, what are they for and why and how to use them?

KPI’s What are they, what are they for
KPI’s What are they, what are they for

Are you running an online marketing strategy for your website? If the answer is yes, this article will surely be very useful for you to know what a KPI is, its importance and what it is for.

If, on the other hand, you already know this term and its usefulness, you may be interested in the end of this post, where we talk about how to choose the most convenient KPIs to measure those factors and variables that you think are most important for your site, and the use that should be given to these in order to obtain maximum effectiveness and success with your page.

The term KPI, acronym in English, for Key Performance Indicator, whose meaning in Spanish would become Key Performance Indicator or Performance Meter, refers to a series of metrics that are used to synthesize information on the effectiveness and productivity of companies. actions that are carried out in a business in order to be able to make decisions and determine those that have been most effective when it comes to meeting the objectives set in a specific process or project.

KPIs are also known as quality indicators or key business indicators that can be used and applicable in any business area and productive sector, although they are used in a very common way in online marketing.

“The Principal objective of a KPI is to help make better decisions regarding the current state of a process, project, strategy or campaign and thus be able to define a future line of action.”

Why are KPIs used and what benefits do they offer?

KPIs are used for different benefits:

1. They allow you to obtain valuable and useful information.

2. Measure certain variables and results from said information.

3. Analyze the information and effects of certain strategies (as well as the tasks that were used to carry them out).

4. Compare information and determine effective strategies and tasks.

5. Make the right decisions.

What are the practical benefits of using KPIs?

Some of its great advantages would be the following:

  • KPIs, largely thanks to the improvement of new information technologies (Big Data: databases, automation systems and computerization of data, etc.), offer compared to traditional channels in which the quantification of certain issues it is tedious and complicated, a much simpler, objective and reliable measurement.
  • Currently there are a multitude of specialized analytical tools that allow measuring all kinds of KPIs in any sector or activity and knowing a greater amount of objective data about what you want to quantify. Normally, these types of tools are very focused for use in a specific field of action, so they will always use the most appropriate and appropriate KPI’s in each case, which greatly facilitates the work of:
    • Choice of KPI’s
    • Location of objective, measurable and relevant data for what you want to measure.
    • Obtaining synthetic reports on what is to be determined.

KPIs not only allow you to determine the results for a specific action or strategy but also offer a global vision of the situation since they facilitate the determination of strengths and weaknesses (aspects of improvement) for your projects.

How to choose the right KPIs for your marketing strategies?

From this point we focus on the KPIs for Marketing that are the most used and known today and we will give some guidelines on how to choose and use the most relevant KPIs for Online Marketing in each case to obtain useful information on this type of strategy. .

As we have previously commented, KPIs are used to measure all types of variables applicable to an activity, sector, etc.

Marketing strategies base their objectives and results on the achievement or improvement of the data that are obtained in these KPIs and the optimal level set for them. And it is that the key performance indicators allow obtaining high quality information.

But first of all, it is imperative to talk about the characteristics that a KPI in Marketing must have to be really relevant to what you want to measure as well as the different types of KPIs that can be used in each case.

If you search for “meaning KPI” you will come across the definition of “key performance indicator”: KPI or Key Performance Indicator. However, KPIs are not just a series of metrics that help identify the performance of a certain action or strategy that is carried out in a business. KPIs are tools to detect which are the best and the most effective actions that have been carried out when it comes to meeting the objectives that have been set.

The KPIs in the selection process

Although KPIs are useful in any department, one of the areas where they are especially used is in the selection department. Regardless of how this department is managed, whether it is by external consultants or if it is by an RPO (Recruitment Process Outsourcing) service, it is necessary to have some index to measure its effectiveness. The KPIs helps measure and it is necessary to find the most appropriate indicators depending on the time when the company is and the strategy that is taking place.

What characteristics should a Marketing KPI have?

We could define a series of standard parameters that any Key Performance Indicator should meet to be truly relevant and appropriate, and thus obtain the best possible results in your marketing strategies. Must be:

  • Specific
  • Continuous and periodic
  • goals
  • Quantifiable
  • Measurable
  • Realistic
  • Concise
  • Coherent
  • Relevant  

What types of KPIs can be used in online marketing strategies?

Depending on the type of strategy and the means used to carry it out, some key performance indicators or others should be used.

The main types of KPIs in online marketing strategies are the following:

Online marketing KPI’s for Social Networks:

When social media marketing strategies are carried out, the objectives are usually aimed at measuring the impact of the actions carried out in the different social networks for the brand.

In this way, it is possible to determine which is the most appropriate in each case, which actions have had the greatest impact, points for improving the strategy, etc.

They are mainly used to measure the number of interactions with posts:

  • Number of mentions.
  • Number of followers.
  • Number of comments.
  • Number of shares.
  • Number of subscribers.

The main KPIs to measure visibility, social interaction and engagement in networks are those provided by each social network in each case (Linkedin: the number of recommendations, Twitter: the number of Retweets, Google Plus: the number of +1, etc. ).

In the case of the main KPIs to measure the growth of the community in networks, they are more linked to the number of followers, although those that indicate the level of interaction can also be useful for this purpose.

Online marketing KPI’s for Web Analysis:

When you want to analyze and measure the level of organic positioning of a website and other analytical options, it is necessary to use specific KPIs to evaluate the progress of your website.

Generally, they are used to measure and determine:

  • The reputation of the domain in the face of search engines (DA, PA and Spam Score)
  • The type (follow and nofollow or incoming and outgoing), quality (from which medium they link us) and number of links to the web
  • Origin of traffic and type and duration of visits
  • The keywords and the number of them by which users find the web.
  • The positions occupied by the keywords for which you want or have managed to position for the web in search engine results.

The main KPIs for web analytics are the number of new users, the percentage of new users, the number of pages per session, and the number of sessions.

General online marketing KPIs:

For the analysis and general measurement of the joint results of the online marketing strategies that are carried out in a brand, there are different types of performance metrics, such as the following options depending on the scope:

  • Sales and customer KPIs: number of conversions, the rate of clicks on your ads,
  • KPI for content: to know where the blog’s content is read, the bounce rate, the number of unique visitors, visits through mobile devices, the number of page views, content engagement (bounce rate, the click pattern …), the level of interaction (number of comments, mentions and shares), etc.

KPI for email marketing: to measure, for example, the number of email opens, the number of clicks on it or the number of unsubscribes in your mailing campaigns .

How to use and choose the most appropriate marketing KPIs to measure your online strategies?1. Before starting to measure, analyze and compare data and results of strategies, it is necessary to consider very well what questions are to be studied and what data must be obtained to obtain the information that is needed. This is essential if you want to obtain useful, current and real data.

For example, it makes no sense to use a KPI such as the bounce rate or percentage on the web to measure the volume of interactions achieved on social networks as is logical.

2. It is also necessary to define the objectives very well to be able to determine the most important KPIs in each case and to discard those metrics that, although they may offer some additional information, do not directly serve to assess whether the proposed objectives are being achieved or not. .

And it is that a fairly common error in a web analytics study when determining the results is to use all those metrics that may be related, thus causing a large accumulation of information which can generate problems of organization, structuring and understanding of the same for effective decision making.

3. Another aspect to take into account when choosing KPIs in online marketing strategies is that the objectives set must be achievable and realistic for the deadline set for their achievement. Otherwise they will not be met or reached.

4. Once the KPIs have been chosen, they must be analyzed periodically (daily, weekly, monthly, etc.) according to the need and the type of data obtained.

5. Finally, the relevance of the information extracted from the KPIs should also be considered, since there may be irrelevant data that can waste time in its analysis and divert attention from those KPIs and data that may really be of interest to you. interest.

As you can see, when creating a professional web page and later publishing it, a series of objectives must be considered to be successful with it and to be able to obtain the expected ROI.

The Internet is an increasingly competitive environment, so it is becoming more and more important to perform an analysis of the performance of the web and carry out the appropriate actions and decision-making based on the data obtained if results are to be obtained.

Therefore, the KPIs for online marketing will be especially useful to exploit this environment and achieve the objectives that you set for yourself.

And you, have you ever used KPIs? What types of KPIs have you used? Do you use any online marketing KPIs to analyze and measure your strategies?

KPIs types

The KPIs used should provide information on the efficiency of the selection process and identify areas for improvement in this process. Analyzing the KPIs in a deep way it will be possible:

  • the comparison between different processes, between different business units or even countries.
  • draw conclusions that allow the improvement of processes and the system. The most common KPIs are usually related to the duration of the processes and the quality of the selection.

KPIs duration

This indicator is especially relevant at the moment when it is defined when the selection process opens and closes. The process is considered open when the vacancy for a position is approved and the information for the profile has been collected. The process is closed when the offer to join a specific candidate is made . 

There are certain variables that can influence this KPI:

  • the type of profile to select
  • the moment the market is
  • recruiting sources

If the company has a current database, and there are candidates who can apply for the position, it is more than likely that the process times will be shortened considerably.

KPIs quality

This KPI is measured for the long term and is closely related to the quality of the candidates. The indicator relates the achievements that the recruited candidate has achieved through performance evaluations or inclusion in talent programs. The organization must have a transparent talent management system and its assessment is possible after 12 months of permanence.

KPIs effectiveness of the process

It is one of the most common KPIs. It is related to the percentage of candidates presented in the first shortlist with those who are finally hired by the organization . It is very relevant when the selection process corresponds to an external company and when there is time pressure .

Well-chosen KPIs according to the objectives pursued by the company or organization are an excellent tool for monitoring and controlling planning and actions. With them it is possible to choose between those actions that are more or less profitable. And above that they allow to see the degree of fulfillment of the set objectives. At Enzyme we try to help you find out which is the best strategy for your business and which is the one that gives you the best performance.