SELECTION OF EFFECTIVE KPI’S


In the document called Web Analytics Key Metrics and KPI's published by Web Analytics Associations (WAA), KPIs are defined as follows in the context of web analysis:

KPI (Key Performance Indicator): Although it can be given both as a number and as a ratio, they are usually given as a ratio. Although the basic numbers and rates can be applied to all types of interet sites, KPIs - by the meaning of the word 'lock' - are intertwined with business strategies, and therefore the true KPI cluster often varies by site and process types.

(Web Analytics Key Metrics and KPI's)

Another important point is that the terms KPI and Measurement method are frequently used interchangeably.Although a KPI is always a measurement method, this can be misleading since a measurement method is not always a KPI.

KPI  :

  •      Always in harmony with the strategic goals of businesses

  •      Defined by administrations

  •      Represents the 'red lines' towards achieving corporate goals

  •       Based on valid data

  •      Should be calculated and easy to understand

  •      Be open to the influence of positive actions and play a trigger role for them


Choosing the right KPI’s from the point of view of digital marketing is vital to see the effectiveness of your marketing performance and to make informed decisions for continuous improvement.

Reviewing the literature, it is found that the set of criteria most often referenced is that of SMART (Specific, Measurable, Attainable, Realistic and Time-sensitive)



Picture : Smart Criteria

(Arash Shahin, 2006)

·      Specific

Goals should be detailed and as specific as possible. Loose, broad or vague goals are not desirable. When goals are specific, it is much easier to hold someone to account for their achievement.

·      Measurable

In order to clearly determine if objectives have been achieved, goals should not be ambiguous, rather they should be clear and concrete. Each goal should be measurable. The measure may be quantitative or qualitative, but measurement should be against a standard of performance and a standard of expectation.

·      Attainable and aggressive

Success or failure is only fairly attributed against practical goals. Goals should not be out of reach. They should be reasonable and attainable. However, setting goals is a balance between this degree of “attainability” and challenge and aspiration.

·      Realistic and result-oriented

Extending the concept of attainability, a goal should be realistic. It is possible that a goal could be set that is attainable, but not realistic in the particular working environment. Being realistic in the choice of goals is helpful in examining the availability of resources and selecting KPIs.

·      Time-sensitive

Goals should have a time frame for completion. Having a time frame will provide a structure and allows the analyst to monitor progress. A timeline or completion date should be a part of a goal. Being time sensitive is helpful in measuring success along the path of reaching the goal. It also assists in developing a realistic action plan, including setting intermediate objectives and strategies for reaching the goals . (Arash Shahin, 2006)

Although the principle of working with web analysts is generally used, you can only apply to their web measurement expertise to determine your own KPIs. The important and reasonable choice of KPI 'is to determine a number of KPIs, usually single digits.

Some generic web-based KPI’s are mentioned below;

·      Page views: Is the number of pages your visitors look at in a given time period, with simple and direct expression, extracting robot and spider traffic and providing measurement of display.

·      Absolute unique visitors:The number of unique visitors visiting your site in a certain period of time, unlike the total number of visits, which were also counted by the same visitor's repeat visits.

·      Abandone rate:The abandone rate can be of several kinds.Basically shows the proportion of the creators, entering a predefined funnel (a series of pages directed to the target action or conversion) and exiting the transaction without performing the desired action. One of the most classic examples is the visitors who empty the shopping cart without purchasing or abandon the purchase process while shopping online.

(RYAN)

In addition to the number of unique visitors per month, other data that may be important are: 

·      Daily unique visitors: Indication of the frequency of visits and beyond the value users place on virtual property; Three quarters of facebook users go daily, and half of linkedın users go monthly.

·      Consolidated identity application: It considers the content consumed in different device types and the nature of the consumption that jumps from device to device.

(RYAN)


References

Arash Shahin, M. A. (2006). Prioritization of key performance indicators. Iran.

Web Analytics Key Metrics and KPI's. Web Analytics Associations.

RYAN, D. (tarih yok). DIGITAL MARKETING.