Learn How Well Designed KPI’s Immediately Inform How Your Website is Performing. This webinar presents a real world methodology to build relevant KPIs that provide direct feedback on the success of your website and organization.
A KPI is a number that rapidly and succinctly shows the progress of an organization’s efforts toward a specific goal with little or no interpretation or cross- referencing. KPIs are almost always rates, averages, percentages, or ratios
Upper Management Goals & High-Level Business Goals & Objectives Objectives Critical Middle Management Items that are vital for a strategy to beSuccess Factors successful Analytics Team KPIs Special Metrics that tell you how you are doing Analytics reports and information Metrics Relationship of Measures - Ratios, averages, rates, or percentages Measures Analytics data Raw numbers and data (web analytics data, off-line touch-points, customer databases, email marketing)
We see many organizations hold numerous meetings,day after day, to define KPIs that seem to lack impact orclarity. Too often they result in dashboards with: Top pages, or other “most frequent” reports Non-contextual visitor, visit, and page view reports Numbers that no one understands, or knows the source and history of Numbers that have “been there for a long time” and no one knows why they are there, who or how they are used, or even what they relate to.
Avoid the slog! A formal methodology helps focus teams in a situation that can often: ◦ Come from vast amounts of information ◦ Have a variety of personal viewpoints or interests ◦ Have a number of possible ways to “win” ◦ Involve data that is subject to interpretation A formal methodology is not intended to force everyone to line up with a particular philosophy in numeric interpretation. There are few “universal” truths in KPIs. A formal methodology should derive “best of breed” information that represents all the required viewpoints: IT, business end users, web analytics, etc.
KPI Karta is a framework for deriving KPIs based on years of working with clients. The framework is universally applicable regardless of industry, type of website, organization, etc. Bridges the communication divide that tends to exist between business teams, technology teams, and the web analytics team.
Goals & Objectives Critical Success KPIs are driven by Factors business Goals KPIs BUT… Metrics KPIs are constructed from Measures Measures
Goals & Objectives • Increase sales In 2012 Critical Success • Increase leads by 25% Factors • Identify, and increase by 50%, high quality lead sources • Conversion ratio of visitors to leads KPIs • Leads per referrer • Lead source quality • Conversion ratio of visitors to leads Metrics • PDF downloads by registered visitor • Leads per referrer • Visitors • Registrations Measures • Leads • Referrers • PDF downloads • Lead score
Goals & Objectives • Decrease support services cost In 2012 Critical Success • Decrease calls by 20% Factors • Reduce per-call cost by 75% • Ratio of call center calls to online support KPIs • Self-service registration per visitor • Cost per call • Ratio of call center calls to online support Metrics • Self-service registrations per visitor • PDF downloads by visitor • Visitors • Registrations • Call center calls • Referrers Measures • Page views • Total call center cost • PDF downloads • Calls handled
BG&O: Increase revenue ◦ Goal set by executive management during annual review of current website strategies addressing decreasing print demand. CSF: Increase revenue generated by “online only” content website by 15% during 2012 calendar year.
Goals & Objectives • Increase revenue • Increase revenue generated by “online only” content Critical Success website by 15% during 2012 calendar year. Factors KPIs Metrics Measures
How do we get from here? CSF: Increase revenue generated by “online only” content website by 15% during 2012 calendar year.To here? KPI: Avg. Click-Throughs per Campaign KPI: Avg. ‘Bumps’ per Article KPI: Avg. Article Rating KPI: Ratings per Visitor KPI: Avg. Forwards per Visitor KPI: % of Visits by Audience
How do we logically “jump” from the CSF to the veryuseful KPIs we just saw?
Break the “jump” between CSF and KPI down into smaller steps that are easier to follow. Add three new discussion points to the conversation: ◦ Marketing Phase ◦ Audience ◦ Strategy & Tactics
Consider the customer/marketing lifecycle and target your actionto it: Acquire - Get your persuasive, introductory message out to as many of your prospective clients and customers as possible. Engage - Deliver a targeted, meaningful, introductory message to the potential customers that attracts them to you for more detailed information. Convert - Provide enough incentive, and a simplified process, and cause the potential customer to execute your preferred action. Retain - Ensure you delivered value as promised and your product/service has long-term value so they keep coming back.
Also known as “Segmentation” - The process of grouping your customers together into logical groups of similar characteristics or behaviours. Each of those logical groups of customers is called an “audience”. Why do we segment our KPIs? ◦ Your most persuasive and eloquent arguments to get a visitor to perform a particular action do not work equally well with all types of visitors. ◦ Certain basic traits of your customers will provide hints on how best to approach them in nudging them toward conversion.
"Strategy without tactics is the slowest route to victory.Tactics without strategy is the noise before defeat." - SunTzuStrategy: Decisions made to achieve the greatest overallvalue irrespective of immediate return. A plan of actiondesigned to achieve a long-term vision for yourorganization.Tactic: Decisions made to achieve greatest immediatevalue. These are the day-to-day activities that arerepeatable in your business and relatively clear-cut.
Phase: Awareness ◦ Audience: US visitors Strategy: Optimize existing campaign efforts Tactic: Implement detailed hierarchy tracking of campaign activities. Phase: Engagement ◦ Audience: US visitors Strategy: Expose high-value (targeted) content Tactic: Implement activity-based content serving Strategy: Increase impressions Tactic: Increase ad inventory Tactic: Increase number of visits per Broker visitor.
Be suitable for the specific business, industry, and organization Be related to business goals and objectives Make it possible to influence the business Make the KPI easy to quantify Link to other relevant data Be comparable over time Have a dedicated, committed owner
Define SMART KPIs Consume your KPIs using RADAR
Specific – Clear, unambiguous, and understandable without vagaries and platitudes; Measurable – Concrete criteria for measuring progress toward the attainment of the goal; Attainable – Realistic and achievable; Relevant – Choose goals that matter; Timely – Ground goals within a time frame;
Report – Extract data from your web analytics; Analyze – Review the reports to identify patterns based on a predetermined hypothesis; Decide – Make a determination on whether the data proves or disproves the hypothesis; Act – Create and implement a plan for refining the initial hypothesis; Repeat – Continuously improve the process by repeating the investigation of the hypothesis
1. What is the primary business objective of our site? (Some examples include: drive revenue, drive leads, contain costs.)2. What are the valuable actions or behaviors I’m trying to get my site visitors to do? (Some examples include: purchase, register, consume content)3. What adjustments can I make to change how many visitors are performing these valuable actions?4. What is the value to my company each time someone performs one of these actions?
1. How often does each individual visitor perform this action?2. What tactics do we use to encourage visitors to perform these actions?3. Do those tactics cost us money?4. Do we need to show a return on the investments we’re making in those tactics?5. What business metrics am I held accountable for by my boss?6. What business metrics are my boss held accountable for?
Blogs ◦ The End of Anecdotal Analytics http://bit.ly/wD6SAS ◦ How To Build Trust in Analytics http://bit.ly/s4fpmR ◦ How An Organization Defines and Measures Progress Toward Its Goals http://bit.ly/KpWVmk Other Services ◦ KPI Library: A KPI discovery service based on industry and interest http://bit.ly/JMeZ7o
Unilytics Services ◦ KPI Karta® – Measures and Metrics that Matter http://bit.ly/KpKV3Y ◦ Montage – Dashboard Automation Software http://bit.ly/shtSRh ◦ Do you use SharePoint and need analytics? http://bit.ly/JKUc8M