What are the four main KPI categories?
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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).
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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).
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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.
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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?
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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.
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Customer Acquisition Cost (CAC)
measures how much it costs to acquire a new customer.
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Return on Investment (ROI)
is the amount of revenue generated from a marketing campaign compared to the cost of running that campaign.
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Customer Lifetime Value (CLV)
is the total amount of revenue you can potentially generate from a single customer over their lifetime.
Improving KPIs with SAP Emarsys
SAP 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.