Most marketing teams use KPIs (Key Performance Indicators) to measure the success of campaigns. They provide you with a metric on which you can determine success. Without them, you might as well be feeling your way through the dark. Here are six benefits of using KPIs.
They Let You Measure Results
The most obvious benefit of using KPIs is that they allow you to measure results. There is a huge creative element to any marketing campaign but data is also extremely important. With analyzing data, it’s impossible to know how well your campaign is working and why it’s working. By using KPIs to measure results, you can improve campaign performance and make the most of your marketing budget.
They Help You Set Business Goals
Every successful business has clearly defined goals. KPIs provide a metric to measure business goals. For example, if the business has a goal of growing its social media audience, it could be measured by follower count, impression, web traffic, and conversions. This then turns a vague business goal into a highly specific goal that can be measured.
They Offer Incentives to Your Team
One of the best ways to motivate employees is to provide them with incentives. For example, a content creator could be tasked to get a certain number of articles to rank on Google. The incentive could then be a bonus structure based on the percentage of articles ranking. This is an excellent way of encouraging employees to work harder and perform better.
They Help You Find Issues in Your Business Strategy
KPIs are an excellent way to identify issues with a business strategy. A business’s strategy is a definition of where it wants to be in the future and exactly how it’s going to get there. Implementing KPIs into a strategy makes it easier to measure certain goals and objectives. Here’s an example – a business has a strategy to grow a larger social media presence to drive traffic and ultimately sales via the website. The KPIs tell you that the follower count has grown and the amount of traffic to the website has grown with it. However, the sales haven’t grown significantly. That tells you that the problem is with the website itself or the type of traffic being sent there.
They Allow You To Measure The Success Of Competitions
Online casinos are a great place to look for marketing inspiration. They often run competitions that allow customers to play now with free credit. All they have to do is offer up their details. However, without using KPIs to measure the success of these competitions, online casinos would have no idea if it’s worth it.
They Align Your Marketing And Sales Efforts
In many businesses, marketing isn’t measured in the same way as sales. When it comes to sales, it’s easy to measure the success of individual employees or teams. In marketing, this is more difficult. However, implementing a KPI strategy allows you to measure campaign success. This will help you align the efforts of your marketing and sales teams.