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KPI is an abbreviation for Key Performance Indicator. This shows the most important key figures with which a company derives its corporate goals.
The Key Performance Indicator is used to check and control the performance of a company. With the help of these key figures, your company can analyze and adjust certain processes and measures. Depending on the company and the industry, different KPIs are used to check performance. For controlling, for example, sales and revenue figures are of high importance. In sales, for instance, the number of leads received is interesting. Thus, a company defines different KPIs for the different departments.
As already mentioned, for various departments, different Key Performance Indicators are of importance. The online marketing department places a lot of emphasis on the flow of visitors, i.e. traffic. However, to also keep an eye on performance and costs, the following KPIs are commonly used:
For KPIs to be effective, they must be actionable. This means that the key performance indicators must be clearly defined. An evaluation of the KPIs must take place after a predefined period (e.g. weekly or monthly). In this way, the specified key performance indicators are achieved more quickly and efficiently. Through a targeted analysis and comparison with data from the past, a strategy is then revised or newly developed in order to successfully complete the campaigns.
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