KPI stands for key performance indicator, and can be used to measure just about anything, from overall profit to sales by region. These metrics help gauge how successful a campaign or business project was by accurately measuring aspects such as: likes received, customer satisfaction rate, message open rate, money earned, total engagements and so on.
A KPI is a crucial tool to help develop effective business tactics. Defining a KPI depends highly on the goals of a brand or business. This performance measure can only be fully defined once a business asks itself three core questions: what is the desired outcome? why does this outcome matter? how will we achieve this outcome?
The goals must be specific, achievable, relevant and fit a precise time-frame. Gathering information that makes the goals and outcomes as specific as possible is crucial to finding a well-fitting KPI; although it can be easy to adopt the most popular KPI to measure performance, not every KPI fits every campaign or business venture. They should be customized to fit what your brand needs, not just accepted because of common practice.
Once the goals are created and defined, KPIs can be established and put into action. A well-fitting KPI can help employees and clients dive deeper into the success of a campaign or business venture, as well as develop plans for the future based on what the KPI was measuring—and continue studying the KPI weekly, monthly and on a consistent basis. Utilizing thoughtful KPIs to measure success can help a brand or business measure specific, crucial aspects of projects, and utilize this information in the future to continue growing.