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10 essential KPIs for 7 different industries 0

Posted on July 13, 2015 by Rob Petersen

 

Key Performance Indicators (KPIs) are metrics tied to a target.

They are the measurable values that demonstrate how effectively a company is achieving key business objectives. KPIs operate as the actionable scorecard that keeps the strategy on track.

The video above from  Erica Olsen of OnStrategyHQ.com shows how to develop KPIs and set up a KPI scorecard.

But KPIs differ depending on the objectives and type of business and industry. For example, if a business relies on marketing, or a sales force, social media, SEO or financials to achieve objectives, there will be different KPIs. The same can be said if a business is retail or pharmaceuticals.

What are the most important KPIs for your business? Here are 10 essential KPIs for 7 different industries.

MARKETING KPIs

  • Incremental Sales
  • Incremental Profits
  • Website Traffic
  • Bounce Rate
  • Audience Segmentation
  • Acquisition by Channel
  • Goal Completion Rate or Conversions
  • Cost per Acquisition
  • Social Interactions
  • Return on Investment (ROI)

SALES KPIs

  • Sales Growth
  • Sales per Rep
  • Number of Leads
  • Cost Per Leads
  • Product Performance
  • Average Purchase Value
  • Quote to Close Ratio
  • Usage of Marketing Collateral
  • Clicks from Sales Follow Up Emails
  • Social Media Usage

FINANCIAL KPIs

  • Working Capital
  • Debt to Equity Ratio
  • Accounts Receivable
  • Accounts Payable
  • Inventory Turnover
  • Gross Profit Margin
  • Net Profit Margin
  • Budget Creation Cycle Time
  • Reports Produced per Financial FTE
  • Finance as % of Revenue

SOCIAL MEDIA KPIs

  • Content Rate
  • Keyword Frequency
  • Average Response Time
  • Fans and Followers
  • Audience Growth Rate
  • Potential Reach
  • Share of Audience
  • Share of Engagement
  • Influence Score
  • Sentiment

SEARCH ENGINE OPTIMIZATION (SEO) KPIs

  • Priority Keywords
  • Keyword Monthly Search Volume
  • Keyword Ranking
  • Keyword Click Through Rate
  • # of  Inbound Links
  • # of Indexed Pages
  • Domain Authority
  • % of Website Traffic from Organic Search
  • Bounce Rate of Organic Search
  • Goal Completion Rate from Organic Search

RETAIL KPIs

  • Incremental Sales
  • Customer Acquisition
  • Customer Retention
  • Goal Completion Rate or Conversions
  • Average Customer Value
  • Website Traffic
  • Bounce Rate
  • Point of Purchase
  • Cost of Goods
  • Social Interactions

PHARMACEUTICAL KPIs

  • % of Doctors who are Aware of Brand
  • % of Doctors who are Willing to Prescribe Brand
  • Target Price vs. Actual Price
  • Reimbursement
  • # of Key Opinion Leaders (KOLs)
  • Promotion Expenditures
  • Brand Share of Voice (SOV)
  • Unaided Brand Awareness
  • Unaided Recall of Brand Message
  • Incremental Rx’s

These diverse areas have been examined to demonstrate how important the objectives and industry are to the selection of KPIs.

Did they convince you of the importance of KPIs for your business? Were they relevant to your business? Do you need help determining KPIs and setting up a KPI dashboard for your business?

10 data experts explain why little data is the new big data 0

Posted on February 22, 2015 by Rob Petersen

 

 

little data vs big data

  • 91% of marketing leaders believe successful brands use customer data to drive business decisions (source: BRITE/NYAMA)
  • 90% of the world’s total data has been created just within the past two years (source: IBM)
  • 87% agree capturing and sharing the right data is important to effectively measuring ROI in their own company (BRITE/NYAMA)

These facts say loud and clear companies believe data helps them make better business decisions.

Big Data is a broad term for data that comes from places like web browsers, social networks, census, surveillance and sensors. It’s stored in computer clouds, and searched for patterns, predictive analytics and insights.

According to IDS, in the next 12-18 months, organizations plan to invest in skill sets necessary for big data deployments, including data scientists (27%), data architects (24%), data analysts (24%), data visualizers (23%), research analysts (21%), and business analysts (21%).

But is bigger better?

Here are 10 data experts who explain why little data is the new big data.

  1.  “Big data has been hyped so heavily that companies are expecting it to deliver more value than it actually can. The exception. Companies that have a culture of evidence-based decision making, tend to be more profitable than companies that don’t have that kind of culture.” – Jeanne W. Ross, Cynthia M. Beath and Anne Quaadgras, Harvard Business Review
  2. “What we track determines where we focus and what we are motivated to improve. Why do people obsess over LinkedIn Connections or Twitter followers?  SAT scores, golf handicaps, or even gas mileage? Because they are observable metrics that are easy to compare. Before you obsess over a particular metric, make sure it’s the right metric to obsess over.” – Johan Berger
  3. “How to beat the big data giant? Start by thinking little data, as in David vs. Goliath. The first step in the little data process is to identify key business objectives that your organization would like to have data solve. Make big decisions and eliminate the need to capture and manage the irrelevant data within the 2.4 quintillion bits of digital data generated each day from the big data stream.” – Gary Drenik, Forbes
  4. “Size in itself doesn’t matter – what matters is having the data, of whatever size, that helps us solve a problem or address the question we have. For many problems and questions, small data in itself is enough. The data on household energy use, the times of local buses, government spending – these are all small data.” – Rufus Pollock, Open Knowledge Foundation
  5. “Corporate decision-makers often would be better served if they rely on tried-and-true tools and systems from the world of Little Data, rather than illusions from Big Data. Sampling theory teaches that if the sample is random, one can measure the behavior or mood of the whole by talking to very few people. A sample of 1,500 is sufficient to predict who will win a presidential election. A sample of 200-300 respondents is generally sufficient to predict how much the whole population will like a new product or service.” – Jerry W. Thomas, Decision Analyst
  6. “Big Data is what organizations know about people — be they customers, citizens, employees, or voters. Data is aggregated from a large number of sources. Little Data is what we know about ourselves. What we buy. Who we know. Where we go. How we spend our time. Without Little Data, Big Data has a tendency to become Big Brother. We’ve all experienced that unsettling feeling when ads follow us on the web.” – Mark Bronchek, Harvard Business Review
  7. “Log daily. Reflect quarterly. Plan yearly. This simple model can provide the data and structure you need to take control. Your yearly reflection will provide you the insight needed to make clear, data-driven decisions.” – John Caddell, author The Mistake Bank
  8. “Big data’s little brother is ‘small data’ or traditional KPIs (Key Performance Indicators) that help to measure success in companies. Any data, and in particular ‘big data’, only becomes meaningful and relevant in the context of the business success, measured by KPIs.” – Bernard Marr, Advanced Performance Institute
  9. “Little data constitutes the nuts and bolts metrics of running a business. For a Web property, that means getting a handle on issues such as the bounce rate, SEO session starts, social session starts, funnels of how users flow through a property, and page views per session. Too many people lose sight of these simple but critical metrics.” – Peter Varad, Cnet
  10. “So if you’re wondering whether to use big or little data, fuhgetaboutit. Instead you should be wondering whether your company is good at using data period. If it isn’t, then that’s the battle you should fight.” – Pam Baker, Fierce Big Data

Is your company good with data? Let us help your company get there. Or consider taking a Digital Marketing or Social Media Mini-MBA at the Rutgers Business School Executive Education where I teach Web Analytics and ROI for Better Decision Making.

Do you think little data is the new big data? Which is going to help you company make better decisions?

 

17 essential KPIs every B2B marketer should know 0

Posted on February 08, 2015 by Rob Petersen

 

 


Key Performance Indicators (KPIs) are quantifiable measurements, agreed to beforehand, that reflect the critical success factors of an organization. They differ depending on the type of business, but, for any business, they are the actionable scorecard that keeps their strategy on track as this video from Erica Olsen of OnStrategy shows

KPIs are metrics tied to a target. For B2B marketers, KPIs should be the five or six most important metrics that measure the success of their strategy to increase and accelerate commerce transactions between businesses.

More often, these days, that strategy involves digital marketing and tactics like website optimization, search engine marketing, content marketing, email marketing, webinars, videos, ebooks, podcasts, social media and social selling.

What KPIs should B2B Marketers consider to keep their strategy on track? Here are 17 essential KPIs for B2B marketers,

  1. SALES REVENUE: A KPI scorecard start with the primary measurement that determines success. Sales revenue is often considered #1. It may be obvious but it also shows offline and critical business requirements are integral to any KPI scorecard.
  2. PROFITS: But not all B2B customers are equal. Some may generate strong sales revenue but also involve a lot of costs to maintain. That’s why, to some B2B businesses, sales revenue is important, but profits are more important because they provide a stronger measure on the health and viability of the business.
  3. WEBSITE VISITS (SESSIONS): A visit is one individual visitor who arrives at a web site and proceeds to browse. A visit counts all visitors, no matter how many times the same visitor may have been to the site.
  4. WEBSITE UNIQUE VISITORS (USERS): A unique visit tells which visits from previous item are visiting the site for the first time. The website can track this as unique by the IP address of the computer.
  5. MOBILE VS. DESKTOP VISITS: According to Marketing Land, mobile devices are responsible for 30% of website visits and 15% of online orders. And growing. So understanding what devices prospect use to access a website and the experience they have on a mobile device is now important.
  6. BOUNCE RATE: The percentage of single-page sessions (i.e. sessions in which the person left your site from the entrance page without interacting with the page). Bounce Rates are considered a measure of a website’s relevance because, in most cases, if a website is relevant, visitors will view more than a single page.
  7. SALES LEADS: The identification of a person or entity that has the interest, authority and budget to be a customer. From a measurement standpoint, this might be determined by someone who subscribes to a newsletter, downloads an ebooks or attends a webinar. Or the total of people who do these and other related activities.
  8. QUALIFIED LEADS: Like profits may be more important to some businesses than sales; qualified leads are more important than leads. A qualified lead with need, budget and buying authority; who meets the customer profile or Buyer Persona and has a buying horizon that falls within your business plan. The criteria for a qualified lead is often debated withing B2B companies. That’s why making “Qualified Leads” a KPI is productive because the definitaion of the KPIs have to be agreed-to before it can be measured.
  9. COST PER ACQUISITION (CPA): How much is it costing you to acquire each lead? How many leads are generated by each one of your marketing efforts, and what’s the value of those leads? Cost Per Acquisition (CPA) is a metric that helps connect the value of marketing with results. It help determine if there is Return on Investment (ROI) for the initiatives being undertaken.
  10. TRAFFIC SOURCES: People like to do business with people they know. If marketing effort generNow that you know CPA in general.
  11. COST PER CLICK (CPC): If paid advertising is used, CPC is the actual price paid for each click, Cost-per click is important because it: 1) quantifies how much has to be invested to generate interest, 2) can often be tracked to a specific keyword and ad that generated the click and 3) can be changed up or down to optimize results relative to investments.
  12. CLICK THROUGH RATE (CTR): The number of clicks an ad receives divided by the number of times the ad is shown expressed as a percentage (clicks ÷ impressions = CTR). A good click though rate depends on various factors such as channel (Paid search, Display, Facebook) and position. But good click rates usually begin in the range of 1% to 3%.
  13. CONVERSION RATE: The percentage of users who take a desired action is the conversion rate. The desired action can take many forms, varying from site to site. Examples include sales of products, membership registrations, newsletter subscriptions, software downloads, or just about any activity beyond simple
    page browsing. Conversion rate is one of the most important metrics in digital marketing and, in marketing, essential to determining return on investment (ROI)
  14. MACRO CONVERSIONS: Because conversion rate is so important, a number of conversion activities might be tracked to understand the buying process. A macro conversion the primary conversion on a website, for example a completed online order or a completed lead generation form.
  15. MICRO CONVERSIONS: Smaller engagements such as a newsletter sign up or a user watching a product video and micro conversion. Taken together, macro and micro conversions enable an understanding of a customer’s buying process.
  16. CUSTOMER LIFETIME VALUE (CLV): The dollar value of a customer relationship, based on the present value of the projected future cash flow from the customer relationship. The value of knowing CLV is that it is  is a prediction of the net profit attributed to the entire future relationship with a customer.
  17. RETURN ON INVESTMENT (ROI): A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. ROI is the measurement that reveals how well a business is being managed. ROI is a calculation. Here are most often used calculations.

If you are a B2B marketer, do these KPIs provide the actionable scorecard to keep your business on track? Is there anything that is left out? Or you would want to consider?

7 core criteria to create a digital marketing plan 0

Posted on September 22, 2014 by Rob Petersen

 

 

digital marketing plan

Digital marketing planning is no different than any other marketing planning. In fact, companies shouldn’t separate plans for ‘digital’ and ‘offline’ since that’s not how your customers perceive your business.

But we’re often required to have plans for “digital” based on the way teams and reporting is structured within companies. A way of aligning the two needs to happen at the start. It’s likely to facilitate buy-in for both that way.

To get you going in the right direction, here are 7 core criteria when creating a digital marketing plan.

  1. FOCUS THE PLAN AROUND CUSTOMERS, NOT PRODUCTS AND TACTICS: Always start with the customer, their characteristics, behaviors, needs and wants, often expressed through keywords. Create Buyer Personas to establish a segmentation of the people who buy your products. Buyer Personas are examples of real buyers who influence or make decisions about the products, services or solutions you market. They are a tool that builds confidence in  strategies to persuade buyers to choose you rather than a competitor or the Status Quo. By focusing the plan around consumers, you bring out the best in your products.
  2. LEARN FROM COMPETITORS: Online is a prolific place to do research on competitors. For one thing, the information is at your fingertips. For another, there are so resources to help. For information on competitor’s website usage, there is Alexa and Compete. You can compare the social media presence of your brand versus competitors in terms of Likes and Followers or engagement terms like Comments and Shares. You’re likely to gain more than a few good idea for your brand in the process.
  3. IDENTIFY CONTENT RESOURCES: After the product or service you offer, content is a brand’s most relevant asset. In a digital marketing plan, you’re going to need a lot of content. You should not only consider the communications but the form it takes such as an email, blog, infographic, video or podcast. Know who will publish it and  and how often it will go out. Make a Content Calendar a backbone of your plan.
  4. HAVE A CLEAR VISION FOR THE YEAR; PLAN FOR 90 DAYS: Articulate the desired results, expressed by the metric that matters most to your organization – sales, revenue, profits, leads, conversions – and the reason why it will be achieved based on what your brand can stand for to its customers. Have the plan that is going to make it happen for the first 90 days but be flexible to change. Situations and plans change, especially online, so ensure plans are usable by having a clear vision for the year and keeping real detail to a shorter term.
  5. MAKE PLANS FACT-BASED SO IT’S EASIER FOR OTHERS TO BUY INTO: 90% of consumer buying decisions begin on the internet according to Forrester Research. 87% of consumers research products online, then buy offline according to Internet Retailer. 79% of consumers trust online reviews as much as personal recommendations according to Search Engine Land. These are just a few ways to gain the attention of people in your organization to support your plan. So, consider using facts throughout your digital marketing plan to win the approval of the people who may not totally understand digital but are smart business people who sign off on it.
  6. KEEP IT JARGON LIGHT: Digital has a tendency to go into a whole new type of nomenclature. Don’t go there. Instead, use the same language as you would for traditional media channels but support it with the facts, resources and metrics that give digital an even greater credibility.
  7. CREATE AN ACTIONABLE SCORECARD: End your digital marketing plan with a scorecard of the measurements that matter most, your Key Performance Indicators (KPIs). Show how you will source them and review them regularly to look for insights. When you review, take actions to keep your business strategy on track.

To put these guidelines into steps every company should take to achieve success in digital marketing, we follow a process of Crawl, Walk, Run and Thrive. You can learn more about it on the sidebar of this website.

Did these criteria help you in creating a digital marketing plan?

16 social media metrics for ALS Ice Bucket Challenge to watch 3

Posted on August 31, 2014 by Rob Petersen


The ALS Association (ALSA) — which fights Lou Gehrig’s disease by funding research, supporting people with the condition and fostering government partnerships — this weekend has now collected over $100 million dollars from a viral social media campaign. Over the same period last year, they collected $2.6 million.

A viral social media campaign is a buzzword that refers to a tremendous increase in brand awareness from word of mouth enabled by social networks and the internet.

The Ice Bucket Challenge has its fans and critics. But there’s no denying, for a very worthwhile organization, the ALS Ice Bucket Challenge has generated tremendous awareness and financial success. It is likely to go down in history as one of the most successful viral social media campaigns, ever; and to serve as a model for other non-profits and profit organizations who will attempt to duplicate this level of success for their causes.

Without question, donations and time to results are key metrics to be included as Key Performance Indicators (KPIs). But social media has played a key role. What metrics do we use to make the connection How do we create an actionable scorecard?

Here are 16 social media metrics for the ALS Ice Bucket Challenge to watch.

  1. KEYWORD TRENDS: The chart at the top is from Google Trends. It is an index that measures increases and decreases in keyword search volumes. In this case, “ALS” and the “Ice Bucket Challenge” were plotted. As you can see, increases in “Ice Bucket Challenge” have had a direct affect on interest in the “ALS.”
  2. KEYWORD SEARCH VOLUME: The average monthly keyword search volume for ALS is now 550,000 according the Google Adwords Keyword Planner. Ice Bucket Challenge is 2900 showing how awareness has been transferred..
  3. WEBSITE RANK: The organization’s website, alsa.org, is now ranked as the 648 most viewed website in the US and 4.192 in the world (an improvement in rank of 168,792 within 3 months) according to Alexa. For perspective, the #1 website is Google; #2 is Facebook and #3 is YouTube. This is quite an accomplishment proving the campaign has driven people from social media to the website where they can donate.
  4. WEBSITE LINKS: There are now 3,248 other sites linking and driving web traffic to alsa.org. Among the biggest are YouTube, Yahoo, Wikipedia and Reddit.
  5. WEBSITE ANALYTICS: Although only the ALSA has access to the Google Analytics of their website, Unitque Visitors, Traffics Sources. particularly the social networks, and Key Content (Web Pages) would be primary measurements. Website Analytics are often overlooked as social media metrics when they are often the most valuable.
  6. CONVERSION RATE: Of course, the Donate page would be a key web page from which to track the Conversion Rate about visitors and people who donated. The Conversion Rate should be monitored weekly and measured against the Conversion Rate a year ago.
  7. VIDEOS: Since videos are central to this campaign, YouTube is the first social network to examine. There are 6,000,000 videos of the ALS Ice Bucket Challengea now posted on YouTube.
  8. MOST VIEWED VIDEOS: Among some of the most viewed videos and their numbers are Bill Gates (18,465,237), Simpsons (11,567,782) and a compilation of the Failed Attempts (17,903,561).
  9. VIDEO SUBSCRIBERS: On YouTube, there are two channels dedicated to the ALS Ice Bucket Challenge; one was created by Zoomin and has 34,832 subscribers; the official ALSA channel has only 1,962 subscribers.
  10. YOUTUBE ANALYTICS: ALSA could know from looking at their YouTube Analytics where geographically viewers came from, how long they watched and what type of device (desktop or mobile) they viewed the video.
  11. SENTIMENT ANALYSIS: Since there are fans and critics of the effort, sentiment analysis plays a key role in the evaluation of any viral marketing campaign. According to Social Searcher, the ratio of positive to negative comments has been 3:1 overall. But it differs widely by social network. Facebook is 7:3; Twitter is 2:3 (more negative than positive) and Google+ is 9:1. Another social search engine, Topsy, which is predominantly influenced by Twitter reports a positive to negative ratio of 27% to 73%. This indicated targeted resources are required to manage conversations from a viral social media campaign.
  12. LIKES: The ALS Association Facebook page has 319,000 Likes. It was growing at a triple digit weekly rate. However, after just a few weeks, the rate has slowed and is now beginning to decline. This provides learning on what should be expected as the life cycle of viral social media campaigns.
  13. PEOPLE TALKING ABOUT THIS: Facebook also has a measure called “People Talking About This.” It is an algorithm of people who Like, Comment or Share conversations that are occurring on a particular Facebook page. For the ALS Association, there are over 470,000 People Talking About This for the ALS Association – more than Like the organization. This is rare. According to WOMMA, a normative rate rate of People Talking About This to Likes is 1%. This shows the virility of the campaign.
  14. HASHTAGS: There are numerous hashtags on the Ice Bucket Challenge – such as #ALSIceBucketChallenge, #IceBucketChallenge and #StrikeOutALS. All of which can be measured for Likes, Shares and Comments to show the level of sentiment and engagement for this event.
  15. TWEET VOLUME: Within the past 30 days, according to Topsy, there have been 8.7 million Tweets for the Ice Bucket Challenge. In the past 7 days, the number is 2.4 million Tweets. But, it looks like it’starting to fall. It’s now 160,,000 per day (1.2 million weekly rate) to 6,000 in the last hour (1.0 million weekly rate).
  16. KEY INFLUENCERS: Participants been a key to the success of this campaign. From politicians (George Bush, Barak Obama), business leaders (Mark Zuckerberg) to celebrities (Matt Damon, Charlie Sheen), many people of influence have given their implied endorsement by taking the Ice Bucket challenge. The quantity and quality of these participants are a key metric.

Rutgers Business School Executive Educative, where I teach, has a Social Media Marketing Mini-MBA for Non-Profits. Donna Dourney York, was a participant in the program. Donna has made amazing progress changing the way people perceive ALS.

Do you think these are social media metrics the ALS Association should watch? Did this help you understand how to use metrics to guide success for viral social media campaigns?

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