“Never believe that one number by itself can be meaningful.” -Unknown
I recently attended a seminar hosted by emfluence called What Gets Measured Gets Done: How to Set Goals and KPIs for Your Campaigns. The speaker for the presentation was
What is a KPI?
Key Performance Indicators (KPIs) act as a map and a compass to determine your overview performance of a campaign or event. The purpose of a KPI is to alert you to potential problems and allows you to make the best decisions with data.
What are you measuring?
There are several things to measure when looking into KPIs. You could reflect on your audience or the impressions you have gained. You can focus on subscribers or engagement growth. Whatever you are measuring needs a why. Your “why” explains what is your reasoning behind seeking the information. It can also be considered as your goal. For example, if you are seeking to understand why frozen pizza isn’t selling despite your weekly sale on the product, this would be your “why”.
During the presentation, Ramsey described how data tells you to be different. He discussed the mental maps we give ourselves. For example, when it comes to data we might read the facts to fit our perspective versus the actuality of the situation. This only hinders us from reaching our goals.
The presenter used the example of having a gazillion impressions on social media. This is not really realistic, but the thought behind it has value. The overall meaning is to gain more impressions to create a better brand awareness which can lead to an increase in in-store and online sales. Practically speaking, we can use those impressions and encourage those people to sign up for a newsletter to learn more about our product. Those impressions will now lead to site visits, which can turn into emails being open. Eventually, we will accomplish the number one goal, sales lift.
Another topic within the presentation was the subject of WIGs. WIGs are Wildly Important Goals. WIGs need a verb, a metric, a due date, and an owner. Here’s an example, “Sales associates will increase sales of butter by 25% by December 31st.” As you focus on your goals in relation to data, you’ll want to keep a scorecard or dashboard of your findings. You can use this information to act accordingly for the best results.
Now that you’ve stated your goals and collected your data, it’s time to evaluate your analytics. When evaluating your analytics consider the following: historical performance, seasonality, industry benchmark and the against itself. Here are resources to use during your analyzing process.
Reaching your goals whether it’s marketing or sales goals can be a scary task. But understand that your data is a map to guide you to make better decisions in the future. Perhaps a social media campaign wasn’t as effective or a sale didn’t yield your expected results. This doesn’t equal failure. It equals an opportunity to update your approach. This was my greatest takeaway from the presentation.