Defining Business Goals, KPIs and Key Metrics

Digital Marketing Auditing
© Susanne Flug
Master in Digital Marketing
IE Business School, Madrid
Session 1: Defining the right metrics
Based on the book “Actionable Web Analytics” from Jason Burby & Shane Atchison

How to establish the conversion funnel?
The most important thing for a company is to define and to communicate their overall business goals. There is a well-known practice how to fulfill this task: Being SMART!
S = Be SPECIFIC!
M = Be MEASURABLE!
A = Be ATTAINABLE!
R = Be RELEVANT!
T = Be TIMELY!
After having defined goals a strategy with a set of tactics has to be implemented in order to guarantee a successful execution. Constant control and alignment is required.
The web channel can support business goals in various ways.
Defining
Business Goals

How to establish the conversion funnel?
The conversion funnel is a digital tool of your web channel subdivided into different stages and aimed to support the overall business goals. It breaks down the sales process into mainly four stages:
Awareness: bringing the product to customers attention
Interest: getting the customer excited about a certain product/ service
Consideration: providing information in a friendly and educational way
Purchase: getting customer to buy a product/ service
The online conversion funnel intersects with the business goals in each stage and gives a clear understanding of the “WHY” during the entire process.
Defining
Business Goals

How to construct KPIs for different site types?
Key performance indicators (KPIs) are a defined measurement of performance in a long run. Those metrics are based on certain website goals and have to be aligned with the overall business goals. Agreement on them is required and evaluating essential.
KPIs always have to be measurable!
Defining
KPIs

How to construct KPIs for different site types?
Depending on the site type, KPIs metrics can differ. There are several website, which are often a combination of different types. Thus, KPIs have to flexible in order to be matched with the individual case.
However, here is a list of the most important types providing a selection of metrics.
Defining
KPIs