Determine How to Measure Success
KPI s are key performance indicators and while many have heard the term, it's often misused and misunderstood. To put it simply a KPI is the metric used to determine if you have met your objective. A KPI is a metric like any other. However, it is the most important metric in measuring your goals, objectives and KPI s. They go together. You cannot have one without having the other. You will have one main KPI for each objective. Now you may have secondary KPI s that will help tell the full story but you will have to align on one source of truth that clearly indicates whether or not you have reached your objective. KPI should be set based on a benchmark for benchmarks. Look to historical data, perhaps your company has done it before. Look too competitive or category data. Perhaps someone else in the industry can be used as a benchmark for you to judge your success or finally, you might just have absolute business needs which if you don't sell 100 units by tomorrow, you'll be out of busine...
ss. That would be your objectives and your benchmark. So looking at some example metrics that match with each of the KPI S for awareness as an objective, a particular metric that could be used to measure awareness would be impressions or the number of eyeballs that have actually seen a listing or an ad you might also be interested in reach would be the number of people that have been reached by that particular ad for an objective of consideration. The number of clicks on a particular ad visits to a website or even completed video views would help me understand if a customer is considering my offering conversion would be measured by sales. The number of new leads or subscriptions or even app downloads. And you can measure repeat purchase based on repeat purchases, referrals or even looking at annual recurring revenue. So let's review the objectives of Brooklyn coffee house and our software company to identify what the right KPI s would be. So, based on Brooklyn, Brooklyn has a goal of increasing the amount of money they received from their current customers or the average revenue per customer. They can deploy a number of tactics to do so, but their main goal is to get people to spend more money. So our KPI should be how we determine if this has happened. So the KPI would be the average amount of dollars spent per person looking at the software company. The software company more specifically has a goal of increasing traffic to the product view page, which indicates someone is interested in or considering purchasing a Prada. We must be specific with our objective in order to help us clearly measure the results consideration can be a difficult measure to clearly linked to a metric. However, we can think about what actions can be taken by a potential customer that would indicate interest in our product or service. So KPI for the software company would be the number of visitors to a product view page on their website