How to identify and utilise KPIs

When managed well, KPIs become an important metric used to determine the success of sales and marketing efforts across your business

Author: Euan Aitken | Published: 12/08/2022

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If your business resides in the sales sector, an effective tool for any sales leader is to implement and monitor KPIs across the department. When managed well, these will become an important metric used to determine the success of sales and marketing efforts across your business. This guide will detail exactly what KPIs are and how they can be utilised to set and achieve business goals.

What are KPIs?

KPIs (Key Performance Indicators) are a quantifiable way to measure the performance of a specific goal or objective over a period of time. These are proven to have many benefits across a workforce, including—but not limited to—boosting employee morale by setting targets for sales teams to strive for, and acknowledging notable milestones and progress made. Ultimately, this gives your team the insights they need to continue making the best decisions for your company.

The goal of these indicators is to return valuable data that can be utilised in creating conversions (any action a visitor takes to help turn them into a potential customer). These could include:

  • Filling in a form on your webpage
  • Registering for a service with their contact information
  • Submitting an enquiry
  • Purchasing your product or service
  • Sharing or reacting to your content on social media
  • Opting into email marketing campaigns

These are just a few examples of conversions that are beneficial to most businesses. However, businesses often have unique website purposes and offer many ways for audiences to interact and engage with their brand. It is important to understand how to measure this data and report on which aspects of your website are performing the best, and which are performing the worst. This data could inform your business decisions on which sections of your website users interact with the least, for example, and encourage your team to improve that area of the website. Sometimes, integral changes need to be made to improve performance, and KPIs can help you understand what those changes are.

How to establish KPIs

The first step to establishing KPIs is to determine clear goals and objectives that are unique to your business. When analysing web traffic, for example, you should clearly think about its purpose. Most websites are created to increase or generate sales, whilst others are designed to decrease overhead costs in the long term. If the purpose is to create sales, then you could consider monitoring some of these things (and more, depending on your sales pipelines):

  • Lead generation
  • Brand recognition
  • Social networking
  • E-Commerce

Websites are designed to encourage engagement with their customers with the main objective of increasing profits. Even if they don’t sell the products specifically online, it can be used to deliver marketing campaigns and interact with visitors whilst gathering valuable insights, but the ultimate goal is to point customers in the direction of their products or services. Understanding the metrics that indicate engagement with your audience will become essential when informing the success of your campaigns and which of your key performance indicators were reached.

However, before you get to KPIs, It is critical to understand the purpose your website is designed to fill because it allows you to start measuring your site activity to improve performance. Web analytics are useful tools, but alone they will not directly inform on the success of your goals—instead, the measures provided must be built on Critical Success Factors (CSFs). These are defined as a set of key activities that an organisation should focus on to be successful and can be used to facilitate the success of certain business objectives within a set time frame.

These CSFs are vital elements to the KPI strategy but are separate entities. KPIs are the calculated measures used to quantify CSFs in a way that measures strategic performance.

An example of a CSF and a KPI can be seen below:

  • CSF Example – Increase visitor conversion by 20% over the next six months
  • KPI Example – Increase visitor conversion 20% compared to the previous month

As you can see, these examples are very similar—the difference being the CSF example looks to the future for an overall growth improvement, whereas the KPI example seeks to increase the conversion rate based on the previous month’s efforts. You can then continue to measure available metrics and generate reports based on your findings to inform future decisions about areas of improvement.

Do you need help with your KPIs?

Understanding the process of setting and achieving business objectives through the utilisation of KPIs will provide tangible evidence of the success or failure relating to the goals. Continuing to adjust and improve on goals once you hit certain targets will keep you on the right track for consistent growth. Having Zigaflow’s web-based business management software can significantly help with this process with our Real-Time Reporting module (which is inclusive in all packages we offer).

For any more information, or if you would like a tour of the system, feel free to get in touch and book a demo today. 

Euan Aitken

Euan Aitken

Sales & Marketing Director

Having started his journey with Zigaflow as a customer who took a keen interest in what the software could become, Euan joined us to lead our Sales & Marketing. Euan loves all things Business, Sales & Tech.

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