Key Performance Indicators
Key Performance Indicators (KPI) are metrics used to define and evaluate the success of an organization. Typically KPI are used in terms of the organizations progress towards the long-term goals of the company.
KPIs are measurable objectives. They are statements of accomplishment.
A few marketing examples:
- Increase the number of new customers by 10% each year.
- Increase the visibility of our company in Europe.
- Increase revenue of the latest product/service in our inventory.
Obviously KPIs differ greatly, depending on the nature of the company and its long-term strategy. Business to Business KPIs will be significantly different than a business catering to the end customer via ecommerce. Therefore each organization should take a look at their goals and then determine specific KPIs that fall along the path to the goals.
It is easy to analyze the effectiveness of a web site once the KPIs have been determined. Each KPI is broken down into specific success events that make up the key performance indicator. Then a web site analytics tool is used to report on each success event.
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