To continue my series of blog posts on B2B web analytics basics, here we’re going to take a closer look at Key Performance Indicators and what you need to know about them.

Key Performance Indicators (KPIs) are little gems in web metrics that you need to take a look at on a regular basis to determine how well or how poorly something is performing. Here’s a Web Analytics Association blogger’s definition of KPIs: “KPIs are quantifiable measures that help decision makers define and measure progress toward organizational goals. KPI metrics translate complex measures into a simple indicator that allows decision makers to assess the current situation and act quickly.”

Sure, you could measure everything under the sun. But why measure more than you really need to? As my colleague, Andy Osika mentioned in a previous blog, “One thing that businesses need to avoid is the ’I want to measure everything’ train of thought, attempting to measure every little detail of their site. That thinking can quickly lead to analysis paralysis, or the inability to make any decisions because there is no true plan for what success actually looks like.”

You need to focus on the metrics that matter by creating an analytics strategy, to get down to that actionable information where you could make adjustments to your marketing campaigns.

In the B2B world sometimes nailing down those all-important KPIs could be tricky. Here are some things to keep in mind as you’re assigning KPIs to measure your success:

• KPIs need to be reflective of your business’ goals and objectives, and will be unique to your company. As Jim Everhart mentioned in one of his blog posts, talking about The Fournaise Marketing Group survey, “69% of the marketers… feel their strategies and campaigns do make an impact on the company’s business, even though they can’t precisely quantify or prove it.” The connection between marketing and sales needs to be clearly defined, and when KPIs are based on business objectives, marketers can prove their worth.
• When selected properly, KPIs could be a major justifier of marketing budget. If some of your KPIs are cost per lead and cost per sale, then you’ll be headed in the right direction in terms of quantifying how marketing contributes to the overall business objectives. These KPIs could also provide you with a healthy defense of your marketing department, and to hold on to your budget when cuts could be forthcoming.
• To evaluate marketing performance, KPIs should also be assigned to report the success of marketing goals, as long as they clearly coincide with your business goals. After all, the “K” in “KPI” stands for “KEY” – and these are the main indicators of success or failure in which you’ll be referring back to often. Remember, “KEY” means ‘these are the most important things that matter.’ Some examples of this could be: Did someone sign up for your enewsletter? Did someone watch a video on your website to learn more about a given product or how to use that product? Basically, these are some marketing tactics that could pay off various business goals such as developing your leads/direct marketing list or becoming more customer-centric to provide great information to your prospects.

Stay tuned for my next blog post where we’ll continue on our web analytics journey for B2B marketing, and talk about metrics.

Related Blog Posts
- Some Basics of Analytics for B2B Marketing (Part 1)
- The Top 5 Reasons for Developing an Analytics Strategy
- Analysis Paralysis - Clearly Defining Your Goals and Keeping Focus
- B2B Marketing and ROI Measurement - Is It Possible?
- If You Want the CEO’s Attention, Stop Talking Like a Marketer