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?
