What is KPI?• The efficiency indicator at output or outcome phase.• How much output are you generating with a given input?• An example of KPI … If your quarterly goal is to generate $50k in sales then what should be your monthly goal? #22 Your summary dashboard should fit into a single page and it should summarize all your analysis and provide recommendations. #30 If your data involves ‘low numbers’ then don’t include them in your analysis. Your core business objectives need to be crystal clear before you can find business KPIs. Formula to calculate P/E – Current Stock Price/EPS. A metric can be a number or a ratio. Romanian / Română It is used to determine the effectiveness of your business in keeping operating costs in control. This is because it does not correlate well with conversions. Revenue Growth Rate = (Current month’s Sales – Last month’s Sales) / (Last month’s Sales) * 100. Earnings per share is quite meaningless if analyzed on its own. You should not say ‘do more analysis’ in your recommendations because it is your job. ‘What’ denotes what is involved in implementing your strategy. Before you can set up external goals, you need to know your core business goals. For example, do not use the. There are three broad categories of KPIs: Business KPI (also known as ‘high level’ KPI), External KPI (also known as ‘low level’ KPI) and Internal KPIs (also known as ‘low level’ KPI). Your internal goal must be SMARTER (i.e SMARTER internal goal). These KPIs are internally used by team members to measure and optimize their marketing campaigns’ performance. As the value of your external KPI increases or decreases, there should be a corresponding positive or negative impact on the external goal and this impact should be significant. Organize your dashboards into three columns: acquisition, behavior, and outcomes. Portuguese/Brazil/Brazil / Português/Brasil Before you can set up external KPIs, you need to know your business KPIs. If your monthly goal is to generate $16,667 in sales then what should be your weekly goal? For example, if one of your core business goals is to increase customer acquisition, then your KPQs can be, ‘How can we increase customer acquisition?’. Compute and show the cost of delaying in implementing the recommendations. And this happens because organization core business objectives and business KPIs are not shared across the organization. You can achieve it next week, next month or next year. Learn about internal & external KPIs. Korean / 한국어 Internal KPIs are set at an individual level and focus on measuring the overall performance of an individual. That’s how you create an alignment between your external goals and internal goals. Here the KPI does not define what percentage decrease in CPA is considered a success. Slovenian / Slovenščina For example, if one of your external goals is to improve website sales then you can use ‘Average Order Value’ as an external KPI because it can highly impact the website sales. So we can create tactical dashboards for say SEO team, PPC team, Affiliate marketing team, social media team, etc. You should be able to achieve your goal within the area of your responsibility and expertise. It is the total value added by your product/service/campaigns to the business bottom-line. External KPIs are tied to external goals and are used to determine how you or your team/department are performing, in achieving external goals. Total Economic Value = Total Sales + Total value of the assisting conversions + Total value of the last click conversions. It should fit in one A4 size paper. There is no urgency. French / Français Following is an example of a tactical KPI dashboard: The goal of a Strategic KPI dashboard is to help key stakeholders (often top management executives) better understand the performance of their core business objectives. So we can have ‘number KPIs’ and we can have ‘ratio KPIs’. The goal of a tactical KPI dashboard is to help team leaders better understand the performance of their team/department/function. Your core values support your mission and vision and drive your day to day decision making processes. Founders / top management executives should play a key role in setting up and monitoring their core business goals. So the cost per acquisition (CPA) can be the ‘cost per conversion’ or the average cost of acquiring a customer. This score is used to separate profitable customers from unprofitable customers. So whenever you achieve one of your external goals, you get one step closer to achieving your corresponding business goal. Thus ‘where’ can also denote ‘efficiency’. Founders / top management executives should play a key role in setting up and monitoring the business KPIs. Here you can copy the formulas we used the other KPI metrics and paste it for your new KPI metric. Evaluate where you are with achieving your goals. So we can have ‘Number KPIs’ and we can have ‘Ratio KPIs’. For example, your business goal could be to generate $100k in additional sales in the next 1 year. Similarly, ‘average order value’ can be used as a KPI because it hugely impacts the website sales. Do you know how to calculate OEE or MTBF? It highly impacts its corresponding goal. Yield = [Optimum quantity of material for good finished products]/[Actual quantity of material for finished goods] ... can make the calculation … KPI is used to measure your performance (as an individual, department and/or a company) in achieving key goals. How can we increase customer acquisition? Your company does not exist just to make money. Portuguese/Portugal / Português/Portugal They are not always reported to clients/boss/senior management. The metric that you choose as a business KPI must highly impact the corresponding core business goal. For example, if your goal is to decrease acquisition cost then your KPI could be a ”percentage increase in CPA in the last month‘. Bulgarian / Български Based your recommendations on the basis of analysis. Things change, circumstances change, market change over time and you may need to adjust your goals accordingly. Your ‘key performance questions must help you in setting up SMARTER business goals. Responsible for increasing kpi calculation formula acquisition cost through ‘ key performance questions must help you in setting up monitoring... Strategic KPI dashboard is used to determine how you create an alignment between your term... Question or KPQ are those questions which help you in setting up and. 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