What is a KPI or Key Performance Indicator?
Key performance indicators or KPIs are key figures that you can use to monitor and evaluate the performance or progress of important objectives in your company. They primarily give management and controlling a quick overview of the achievement of individual projects or departments. Which numbers are considered here exactly depends on the respective business area and the objective. In internal accounting, profitability ratios, liquidity or cash flow ratios are of particular interest. In marketing, on the other hand, the focus is on key figures that say something about the performance of the individual campaigns. Within marketing, too, the KPIs differ depending on the measure and channel.
For example, with a Google Ads campaign, you’ll focus primarily on conversions, clicks, click-through rates, and cost-per-click (CPC). On the other hand, if you are sending out a newsletter, look at the opening rate, click rate and conversion rate to evaluate the success of the measure. Depending on the objective, page views, the time spent on the page and the bounce rate also play an important role in content marketing.
The important thing is: Define the key figures that are important for your department and target achievement in advance and check them regularly. Because only those who have an eye on their numbers can assess how effective the measures and strategies implemented are.