What do you think is the KPI in marketing? The most effective way to use KPI in marketing is being interested by many companies and businesses as well as applying this indicator.
KPIs are now relatively familiar in jobs related to business, projects, human resources, marketing, management, .. In the past few years, this index has been strongly applied and popular in Vietnam but has not brought high efficiency. The article will help you understand what a KPI is and especially how to use KPI effectively in marketing, learn about what is a marketing KPI?
1. What is KPI?
KPI indicators measure the performance, efficiency, and quality of each individual’s work or that of the whole enterprise. So what does KPI stand for? KPI stands for Key Performance indicators. The concept of KPI will help us understand how well a company, a business unit or an individual is doing compared to the set strategic goals.
If a company aims to make a lot of money, they can measure KPIs in terms of sales growth, profit margins, and operating costs. If a company wants to attract new customers by creating a great brand, they can measure brand equity and brand recognition.
And if a company wants their employees to be highly engaged, they can measure employee engagement by KPIs. Also, a lot of companies today want to measure all of the above, they need a different set of KPIs.
2. Types of PKI you should know
2.1 KPIs are linked to strategic goals:
Strategic goals are usually money, profit, market share ==> direct impact on the survival of the company.
For example, the strategic KPI is to achieve sales of 10 billion months and 120 billion per year, failing to achieve that goal is likely to affect the company, investors withdraw capital, Sales and Marketing directors are denied. quit.
2.2 KPIs are tied to tactical goals:
Tactics are small activities that move a company closer to achieving its strategic goals.
For example, Social KPI is that every month it is necessary to achieve 100,000 engagements, however, even if these engagements are achieved, it is not guaranteed to help the company achieve sales. But these KPIs are an indicator that measures the development and effectiveness of the tactics being implemented and at the same time the KPIs themselves must link directly to how it will impact the achievement of strategic goals. how to comb. For example: more engagements ==> more comments, more inbox ==> more people learn about the service ==> more likely to sell ==> increase revenue.
Therefore, it is the management levels (directors, managers) who will be forced to strategic KPIs and these people must create tactical KPIs to serve the achievement of the strategic KPI goals that you are under. These strategic KPIs will be applied to the subordinates who are performing the respective jobs.
3. KPIs with Cloud Pro CRM – an effective KPI management tool
KPIs are becoming more and more necessary for many businesses in evaluating the performance of their managers. However, how to effectively evaluate and manage KPIs in the business is still a question that causes many managers a headache.
Understanding those concerns, OnlineCRM has developed a KPI management feature right on Cloud Pro CRM software with the sole purpose of being able to turn CRM into more than just a software to support marketing, sales and customer care. customers, but also an effective assistant of the most effective management of his business.
4. Benefits of KPIs
KPIs are usually calculated in the overall ERP system, with each department having a different set of KPIs. That shows the benefits of KPI in corporate governance.
– KPIs measure the performance of an individual, organization or business in comparison to the set goals.
KPI helps management to offer a reasonable salary and bonus regime, thereby motivating employees to work better.
KPIs contribute to helping employees have an overall view of work goals, important factors and priority tasks that need to be done first to accomplish goals.
– KPIs shape and develop business goals, visions and strategies closely in each individual.