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What’s KPI?Category: Marketing
KPI is simply” Measure your performance against key business objectives.”
(KPI) is a measurable value that demonstrates how effectively a company is achieving key business objectives. Organizations use key performance indicators at multiple levels to evaluate their success at reaching targets. High-level KPIs may focus on the overall performance of the enterprise, while low-level KPIs may focus on processes or employees in departments such as sales, marketing or a call center.
Who uses KPIs?
• individuals to keep tracking health care as an example
• Organizations or businesses for tracking bigger goals
• Departments for tracking their own objectives
Types of KPIs:
Depending on your industry and the specific department you are interested in tracking, there are a number of KPI types your business will want to monitor. Each department will want to measure success based on specific goals and targets.
Example : Marketing ,sales, customer service, finance, HR, social media,…
How do you develop KPI using SMART KPIs?
KPIs need to be customized to your business situation and should be developed to help you achieve your goals. One way to develop the relevance of a performance indicator is to use the SMART criteria. The letters are typically taken to stand for Specific, Measurable, Attainable, Relevant, Time-bound.
In other words:
Is your objective Specific? Write a clear objective for your KPI.
Can you Measure progress towards that goal?
Is the goal realistically Attainable?
How Relevant is the goal to your organization?
What is the Time-frame for achieving this goal.