To continue my two-part series on B2B web analytics basics, we’re going to take a closer look at Key Performance Indicators (KPIs) and what you need to know about them.
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. As a global business intelligence software company explains, “web analytics refer to website traffic and visitor behavior, analyze all available web data with the purpose of understanding and improving web usage.”
Sure, you could measure everything under the sun. But why measure more than you really need to? When businesses adopt an, “I want to measure every train of thought,” 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 can 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. According to 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 contributesto 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 e-newsletter? 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.
So be sure to narrow down the specific metrics that will give you a good picture of how close you are to achieving your goals. Taking the time to do this will help you fine-tune your marketing campaigns and make them more successful.