What is Key Perfomance Indicator? Definition of Key Perfomance Indicator, Key Perfomance Indicator Meaning and Concept

What is Key Perfomance Indicator? Definition of Key Perfomance Indicator, Key Perfomance Indicator Meaning and Concept - KPIs (Key Perfomance Indicator) are a set of metrics that are used to measure the results of a company. This, in order to be able to compare and decide the most effective actions when it comes to ach…

KPIs (Key Perfomance Indicator) are a set of metrics that are used to measure the results of a company. This, in order to be able to compare and decide the most effective actions when it comes to achieving the initial proposed objectives. They are also known as key performance indicators or quality indicators.


The main objective of these quality indicators is to serve as a basis and help to make more productive decisions. A KPI can be (for example) the number of visits to a store or the number of "likes" on the Facebook page.


Set objectives to establish quality indicators (KPIs)


It is necessary to establish a series of objectives when talking about quality indicators or KPIs, since the link between these concepts is very close.


The objectives of a company or project are the basis for establishing subsequent marketing strategies, the roadmap that will be followed and that will be implemented according to the objectives set.


In order to properly set the objectives, the SMART methodology is usually used, which indicates that they must be specific, measurable, achievable, relevant and set a realistic time for them to be carried out. It is recommended to assign each objective to the appropriate person or department.


The most common objectives are the following:

  • Achieve growth in sales.
  • Increase the traffic of new users.
  • Improve the community on social networks.
  • Increase market share.
  • Improve the brand image.
  • Position the company in the sector to which it corresponds.

Requirements for quality indicators (KPIs)


The quality indicators (KPI) must be:

  • Relevant.
  • Simple.
  • Easy to process.
  • Concise.
  • Complete.
  • Attributable to someone.
  • There must be inexpensive and inexpensive KPIs.
  • No KPI should carry more weight than another.
  • Of known origin and context.
  • Correlation between different indicators.

Examples of KPIs


These are some examples of KPIs that are used taking into account the strategies and communication channels where they are implemented.

  • KPI for social networks : The final objective of the KPIs in social networks is to measure the impact that the actions developed in the different social media are having and compare the results that are being obtained in social networks in relation to other channels. This will help you choose the best channel for your business. As quality indicators, the following stand out, taking into account each social network:
    • KPI on Twitter: Number of retweets, favorites, responses, inclusion in lists, mention of hastahgs, number of tweets.
    • KPI on Facebook: number of likes in publications, number of shares, comments, number of times mentioned, ratings on local pages.
    • KPI on Youtube: Duration of video playback, increase in subscribers, number of likes and dislikes, lists in which they are added.

In the marketing area there are many quality indicators, but the most used in the different disciplines to help attract and retain customers, as well as to promote the products or services of a company, are the following:

  • KPI in Email-Marketing : number of people who open the email, number of people who click on said email, conversion rate, unsubscribe from the service, spam emails.
  • KPI in Content Marketing : No. of shares on Twitter and Facebook, No. of comments on said publication, No. of people who have bought a product thanks to the content on the blog, registrations in the newsletter.
  • KPI in analytics : number of users who add a product to the shopping cart, conversion rate, most visited product categories, bounce rate, page views, opinions.
  • KPI in branding : No. of times the brand, criticisms or reviews are mentioned in a positive way, No. of people who have bought a product thanks to the content on the blog.
  • KPI in sales : Cost of acquiring new customers (CAC), life span of a customer, buying cross-products, qualified leads.

Questions to ask before choosing a KPI


These are the questions to be asked to choose the necessary KPIs:

  • What goals and objectives does the company pursue ?: It is necessary to be clear about the objectives. It is convenient to make a prior list of what the brand is looking for.
  • Do these chosen KPIs influence business goals? : Once the business targets have been chosen, it will be necessary to see if the KPIs affect those objectives.
  • Are they comparable? : KPIs will have to be compared with some benchmark.
  • Help to calculate ROI (return on investment ?: KPIs can help you achieve this.
  • Which person in charge of the company will receive the KPIs ?: Depending on the department to which they are directed, some metrics will be more interesting than others.
  • Who will measure the KPIs and with what tools? : It is important to know and appoint a professional who knows what he is going to do, as well as having the necessary means.
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