Start with your business objectives

This needs to be said; Always start with your business objective before you start defining you KPIs and measure all kinds of not-so-relevant metrics.

Too many marketers starts on the wrong foot.

Before any campaign lunch you should be aware of your business objective and then find the KPIs that are directly linked to your business objective, not the other way around.

The KPIs should tell you if you're on the right track to reach your overall goal.

What are business objectives?

Business objectives are highly specific and measurable goals that you should have in place in order to achieve your overall mission. Many businesses use the SMART goal method.

Objectives can be related to various aspect of your business such as increasing revenue, attract or retain customers, expand into new markets, reduce costs etc.

Business objectives are important for providing direction and focus for a company and its employees, and also for evaluation the company's performance.

What are KPIs?

KPIs, short for Key Performance Indicators, are specific metrics that a business would use to evaluate its performance  and progress towards the business objectives.

These metrics are, as previously mentioned, directly linked to your business objectives. Choosing the wrong KPIs to measure is potentially dangerous to a healthy business and can lead you in the wrong direction.

You can focus on just one KPI, or you could have multiple, but remember; not all metrics are worth measuring.

You should also keep in mind  how often you should report on your KPIs. Is it monthly, quarterly, yearly etc. Some KPIs are measured monthly, while others are only measured yearly, so be clear on when to report on different metrics.

Examples of KPIs

Here are some examples of KPIs related to marketing:

  • Cost per lead
  • Conversion rate
  • Average order value (AOV)
  • Customer lifetime value (CLV)
  • Return on ad spend (ROAS)
  • Total revenue

To sum it up

This short article is just something I had to get off my chest. Choosing the right KPIs always come down to the types of business objectives you have.

Next time you're about to launch a campaign, stop and think about your business objective before you start scribbling down all the metrics you're about to track. Do not track likes and comments if your business objective is to drive more sales.

If you do not have a clear business objective, you should start there before launching any campaigns.

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