2. What are Key Performance Indicators
(KPIs)?
KPIs are a set of calculated values used to measure success. The data
gathered from those measurements helps give managers insight into
business performance and progress.
Matthew Hardesty | GoldenComm | 474 E. 17th St, Suite 103, Costa Mesa, CA 92627
3. What’s the benefit to a business?
• KPIs offer an objective view of
business performance for
managers to review (instead of
relying on subjective reports or
perceptions of success).
• Measure success of programs
• Quickly link financial investment with
strategy
• Conduct performance reviews
• Monitor effects of operational
workflow adjustments
• Translate business goals into visible &
actionable metrics
Matthew Hardesty | GoldenComm | 474 E. 17th St, Suite 103, Costa Mesa, CA 92627
Business Goal
Business Goal
Strategic
Planning
Executives,
owners, board
members
Management
Managers
Daily
Operations
External
Operations
(customer
service, sales)
Internal
Operations
(manufacturing,
supply-chain)
Company
Operations
(accounting, HR)
4. How are they obtained/triggered?
• Relevant KPIs can be discovered
by observing any occurrence
where an action between a
responsible party and a
dependency intersects with a
company’s strategic goal
Goal
Responsible
Party
Matthew Hardesty | GoldenComm | 474 E. 17th St, Suite 103, Costa Mesa, CA 92627
Dependency
5. Example
Matthew Hardesty | GoldenComm | 474 E. 17th St, Suite 103, Costa Mesa, CA 92627
Company Metric
Order >$700 in
Orange County
KPI
Sales Rep
Date of sale
• Company Goal: Measure
frequency of orders in excess of
$700 in Orange County each
month
• Responsible Party: Sales rep
• Dependency: Customer
• Action: Sales rep makes a sale
that totals $833 to a customer
located in Costa Mesa.
Customer
6. Considerations for developing KPIs
Defined Business Goal
Data Capital
Technology Capital
Intellectual Capital
What data is required to
make measurements?
What applications and tools
are in place (CRM, CMS, BI
Tools, etc…)
How can the skills of business
employees affect the
outcome of the results?
Does the data and data
structure exist in a way that
supports measurement?
Is the current technology
sufficient to store and
manipulate data?
Should the actions of
customers or third parties be
considered?
How will new data be
acquired and documented?
Is new development required
to enable measurement or
progress? If so, does the ROI
make sense?
How much additional time, if
any, should be spent
developing new processes,
training, reporting, etc…?
Matthew Hardesty | GoldenComm | 474 E. 17th St, Suite 103, Costa Mesa, CA 92627
7. Considerations for developing KPIs
Defined Business Goal
What’s measured?
How is it measured?
Matthew Hardesty | GoldenComm | 474 E. 17th St, Suite 103, Costa Mesa, CA 92627
Who’s responsible?
8. KPI Analysis in the Business Process
Define Business
Goal
Strategy Planning
& KPI Selection
Matthew Hardesty | GoldenComm | 474 E. 17th St, Suite 103, Costa Mesa, CA 92627
Strategy
Implementation
Measurement,
Evaluation, and
Strategy
Adjustment
9. Best practice for defining relevant KPIs
• Suitable for the business
• Allows for chronological comparison (measure of progress over time)
• Must have responsible party
• S.M.A.R.T.
•
•
•
•
•
Specific
Measureable
Attainable
Relevant
Time-bound
Matthew Hardesty | GoldenComm | 474 E. 17th St, Suite 103, Costa Mesa, CA 92627
10. Three steps to measure
Once a relevant goal and KPI have been selected,
1. Develop a baseline
2. Record statistically adequate amount of relevant data
3. Compare results with baseline
Matthew Hardesty | GoldenComm | 474 E. 17th St, Suite 103, Costa Mesa, CA 92627
11. Common KPIs for eCommerce
• Weekly, monthly, quarterly,
annual sales
• Conversion rate
• Shopping cart abandonment
rate
• New vs. returning customers
• Number and average rating of
product reviews
Matthew Hardesty | GoldenComm | 474 E. 17th St, Suite 103, Costa Mesa, CA 92627
• Product affinity (what’s
purchased together)
• Average margin
• Average order value
• Customer acquisition cost
12. Common KPIs for Web Marketing
• Site traffic
• Unique vs. returning visitors
• Time spent on site
• Page views per visit
• Traffic source
• Geographic location
• Bounce rates
Matthew Hardesty | GoldenComm | 474 E. 17th St, Suite 103, Costa Mesa, CA 92627
• Newsletter subscribers
• Social metrics
• New followers, fans, shares, likes
• Paid search traffic volume
• Caller source & volume (paid vs.
organic)
13. Common KPIs for LeadGen Sites
• ROI
• (Attributable Revenue – Campaign
Investment) / (Campaign Investment)
• % Revenue from SEM
• Revenue from SEM campaigns /
overall revenue
• Email engagement score
• # of new leads / # of emails
• Social interactions
• # of social interactions / period of
time
Matthew Hardesty | GoldenComm | 474 E. 17th St, Suite 103, Costa Mesa, CA 92627
• Traffic source volume
• # of visitors for each source
• Cost per lead
• Total cost of campaign / # of leads
generated
• Conversion ratio
• # of leads per channel / # of wins
• Actions / Goals
• # of users that perform a desired
activity when landing on the site (per
channel) / # of users who land on the
site (per channel)
