How does one decide if a Metric qualifies as a Key Performance Indicator? and if so, what are the characteristics of an excellent online marketing KPI?
I am actually an extraordinarily positive advocate of creating and using KPIs and I truly believe that one has to understand that using KPI and Metric interchangeable is not only wrong, but it can significantly damage your optimization initiatives!
Remember: a KPI is a Metric but a Metric is not necessarily a KPI!
Without real KPIs an organisation will not perform to its maximum and this is in particularly true for businesses where online performance is a vehicle for success. And I think it is noteworthy to remind us all that It is rarely about financial metrics – They represent the results of driving a good KPI.
Essentially concluding that KPIs are a communication and steering vehicle for management.
7 KPI characteristics
a KPI echoes organizational goals
a KPI is decided by management
a KPI provides context
a KPI creates meaning on all organizational levels
a KPI is based on legitimate data
a KPI is easy to understand
a KPI leads to action!
You are more than welcome to challenge me on any of the above, add to the list or send me free diet cokes as a praise of their brilliance :-)
Find a presentation on the above KPI characteristics below:
Other great comments to the KPI debate from my fellow Analytics bloggers:
- Top 10 Web Analytics KPI (Key Performance Indicators) (by: Aurélie)
- Emetrics London Reflections: Triggers, Benchmarking, Identifying Goals & KPI Cards (by: Avinash)
- The big book of KPIs (by: Eric)
- Help Yourself to a KPI! (by: Bryan)
- Measuring Key Performance Indicators (by: Manoj)
Cheers.. Off to Iceland! :-)