KPI: No matter what the segment or size of a business, the choice of its strategies will always converge on a single point in common: achieving success.
However, not all managers are aware that the use of quality KPIs is also crucial for the development of the company and the much-desired customer satisfaction.
That is why in this article, we will explain the concept of KPI and present some relevant indicators. Take the vision!
What Is A KPI?
First, the acronym KPI is an abbreviation of the term Key Performance Indicator, which can be freely translated as a Key Performance Indicator or, more simply, as a performance indicator.
Its purpose is to measure whether a given strategy or set of actions is meeting the proposed objectives, in other words, whether they reflect positively on the company’s productivity and generate the expected results.
A KPI can be a number or a percentage. And as there is an immense volume of data being generated at all times in companies, there will also be thousands of indicators to be explored.
What Is The Importance Of KPIs For The Company?
Key performance indicators are valuable tools to assist in making intelligent decisions and aligning efforts around goals set for the business.
Internally, KPIs are key in making communication with the team clearer. Once the intended objectives are outlined, the measurement of results also facilitates the detection of failures and the use of the most effective resources to combat them.
Can we reveal another secret to you? Employees feel part of the process. And we know that team satisfaction has an impact on increased productivity.
Another point of great importance of KPIs for the company is their ability to improve the customer experience. After all, they deal directly with how the public reacts to business activities. And, of course, it will help to optimize engagement.
What Are The KIPs Related To Consumer Performance And Engagement?
It seems obvious, but an important lesson about KPIs is that if you choose the wrong indicators, the impression of your business will also be wrong. Therefore, all attention is indispensable at this moment.
To facilitate your mission, check out some of the best KPIs to achieve excellent performance.
Return On Investment (ROI)
The KPI that can always be included in a company’s performance analysis has a name and a last name: Return on Investment (ROI). It is used to determine the percentage of profit in relation to the amount invested in a campaign.
In other words, ROI aims to assess the impact of publicity campaigns to know if they generate positive results or if more investment is needed.
Conversion Rate
Not only does customer satisfaction live! Chatbots and virtual assistants are great allies in the modern corporate world, but this is not the first step towards good engagement.
Within a digital marketing campaign, it’s important to know the number of people who took action for your brand’s purpose, such as filling out a form, visiting a page or completing a purchase.
And the conversion rate is the ideal tool to give you these answers. Do you know why? It indicates whether your campaigns are attracting a qualified audience or not.
Finding the percentage of the rate is relatively simple: divide the total conversions by the total visitors, and that’s it!
Customer Acquisition Cost (CAC)
Do you know the company’s expenses to attract and turn the target audience into customers? Well, the mission of Customer Acquisition Cost is to reveal these values.
The idea is that the lower your business’s CAC, the more successful your engagement strategies are. Otherwise, acquisition tactics must be readjusted and may even interfere with the price of products or services.
To reach this conclusion, it is necessary to add all the expenses to acquire a customer and divide this result by the number conquered. To maintain healthy growth, the average consumption of each customer should be greater than the CAC.
Bounce Rate
Bounce rate, or bounce rate, is the KPI responsible for pointing out the number of visitors who abandoned the company’s website without any interaction with it.
Whether it’s because they closed the page, clicked the back button on their browser, clicked on a link to another site, or were inactive for more than 30 minutes, a high bounce rate means your engagement is going bad.
The calculation is done by dividing the number of people who abandoned the site by the total number of visitors. But attention! The bounce rate is a generic indicator which does not show in detail where the problem is.
Also Read: What Do You Need To Know About B2B Sales?
