What are Key Performance Indicators (KPIs)
Key Performance Indicators (KPIs) are measurable values that help businesses track and evaluate their progress towards achieving specific goals.
These indicators provide insights into the performance of a business, department, or individual employee, allowing for informed decision-making and improved outcomes.
KPIs can be financial or non-financial and may vary depending on the industry and business objectives.
Examples of KPIs include revenue growth, customer satisfaction, employee productivity, website traffic, and more.
By monitoring KPIs regularly, businesses can identify areas for improvement and make data-driven decisions to optimize performance.
What are the four main KPI categories?
- Financial KPIs: These measure the financial performance of a business and include metrics such as revenue, profit margin, Return on Investment (ROI), and Customer Lifetime Value (CLV).
- Customer KPIs: These measure the satisfaction and loyalty of customers, and include metrics such as customer retention rate, Net Promoter Score (NPS), Customer Satisfaction Score (CSAT), and Customer Acquisition Cost (CAC).
- Process KPIs: These measure the efficiency and effectiveness of internal processes within a business, such as production time, lead time, cycle time, and defect rate.
- People KPIs: These measure the performance and productivity of employees within a business, including metrics such as employee turnover rate, absenteeism rate, training hours per employee, and employee satisfaction score.
By tracking these different categories of KPIs together, businesses can gain a comprehensive understanding of their overall performance across different areas and make informed decisions about how to improve their operations.
What are the best KPIs to track in marketing?
- Conversion Rate is determined by how many people who visit your website or see your ad actually take the desired action. These could include making a purchase or filling out a form.
- Customer Acquisition Cost (CAC) measures how much it costs to acquire a new customer.
- Return on Investment (ROI) is the amount of revenue generated from a marketing campaign compared to the cost of running that campaign.
- Customer Lifetime Value (CLV) is the total amount of revenue you can potentially generate from a single customer over their lifetime.
Improving KPIs with Emarsys
Emarsys works with leading brands like PUMA, Feel Good Contacts, and Nike to improve business-critical KPIs such as acquisition, purchase frequency, average order value, and retention by unifying their customer, sales, and product data and enabling personalized cross-channel campaigns.