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class="et-boc"> <div class="et-l et-l--body"> <div class="et_builder_inner_content et_pb_gutters3"> <div class="et_pb_section et_pb_section_0_tb_body et_section_regular" > <div class="et_pb_row et_pb_row_0_tb_body"> <div class="et_pb_column et_pb_column_4_4 et_pb_column_0_tb_body et_pb_css_mix_blend_mode_passthrough et-last-child"> <div class="et_pb_module et_pb_post_title et_pb_post_title_0_tb_body et_pb_bg_layout_light et_pb_text_align_left" > <div class="et_pb_title_container"> <h1 class="entry-title">The Secret Formula? KPIs.</h1><p class="et_pb_title_meta_container"> by <span class="author vcard"><a href="https://nismonline.org/author/sam-cuellar/" title="Posts by Sam Cuellar" rel="author">Sam Cuellar</a></span> | <span class="published">Nov 21, 2024</span> | <a href="https://nismonline.org/category/strategy/" rel="category tag">Strategy</a> | <span class="comments-number"><a href="https://nismonline.org/the-secret-formula-kpis/#respond">0 comments</a></span></p> </div> <div class="et_pb_title_featured_container"><span class="et_pb_image_wrap"><img fetchpriority="high" decoding="async" width="2560" height="1707" src="data:image/svg+xml,%3Csvg%20xmlns='http://www.w3.org/2000/svg'%20viewBox='0%200%202560%201707'%3E%3C/svg%3E" alt="The featured image showcases three women dressed in casual office attire high-fiving each other at a table in the office. On the table, there are coffee cups, a laptop, pens, and pie charts. Behind them is a medium-sized whiteboard with additional pie and bar charts stuck onto it. There are also medium-sized and small plants near the women. Behind them is a white stone wall." title="pexels-olia-danilevich-8145335" data-lazy-srcset="https://nismonline.org/wp-content/uploads/2024/10/pexels-olia-danilevich-8145335-scaled.jpg 2560w, https://nismonline.org/wp-content/uploads/2024/10/pexels-olia-danilevich-8145335-1280x854.jpg 1280w, https://nismonline.org/wp-content/uploads/2024/10/pexels-olia-danilevich-8145335-980x653.jpg 980w, https://nismonline.org/wp-content/uploads/2024/10/pexels-olia-danilevich-8145335-480x320.jpg 480w" data-lazy-sizes="(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) and (max-width: 1280px) 1280px, (min-width: 1281px) 2560px, 100vw" class="wp-image-26693" data-lazy-src="https://nismonline.org/wp-content/uploads/2024/10/pexels-olia-danilevich-8145335-scaled.jpg" /><noscript><img fetchpriority="high" decoding="async" width="2560" height="1707" src="https://nismonline.org/wp-content/uploads/2024/10/pexels-olia-danilevich-8145335-scaled.jpg" alt="The featured image showcases three women dressed in casual office attire high-fiving each other at a table in the office. On the table, there are coffee cups, a laptop, pens, and pie charts. Behind them is a medium-sized whiteboard with additional pie and bar charts stuck onto it. There are also medium-sized and small plants near the women. Behind them is a white stone wall." title="pexels-olia-danilevich-8145335" srcset="https://nismonline.org/wp-content/uploads/2024/10/pexels-olia-danilevich-8145335-scaled.jpg 2560w, https://nismonline.org/wp-content/uploads/2024/10/pexels-olia-danilevich-8145335-1280x854.jpg 1280w, https://nismonline.org/wp-content/uploads/2024/10/pexels-olia-danilevich-8145335-980x653.jpg 980w, https://nismonline.org/wp-content/uploads/2024/10/pexels-olia-danilevich-8145335-480x320.jpg 480w" sizes="(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) and (max-width: 1280px) 1280px, (min-width: 1281px) 2560px, 100vw" class="wp-image-26693" /></noscript></span></div> </div><div class="et_pb_module et_pb_post_content et_pb_post_content_0_tb_body"> <div id="sidebar-divibar" class="hiddenMainDiviBarsContainer"><script type="text/javascript">var divibars_settings = {};</script></div> <script type="text/javascript"> var ajaxurl = "https://nismonline.org/wp-admin/admin-ajax.php" , diviAjaxUrl = 'https://nismonline.org/wp-content/plugins/divi-bars/includes/ajax-handler-wp.php'; </script> <p><span style="font-weight: 400;">As marketing professionals, we’re always aiming to improve our strategies. Let’s break the ice. First things first, what should all marketers know about? KPIs! For those of you who are unsure of what KPIs are, they stand for “Key Performance Indicators.” KPIs are used to measure and track how well marketers and organizations overall are doing with reaching their marketing goals. </span></p> <h4></h4> <h3><b>Why does my organization need to use KPIs?</b></h3> <p><span style="font-weight: 400;">If you or your organization wants to measure its success or work on areas that need improvement to achieve goals, then KPIs are for you. For instance, say that the make-believe company Ramen Co. has set a broad goal of wanting to increase their online engagement. While this goal is a great start and is perceived as motivating, the absence of KPIs will make the tracking process very difficult. If Ramen Co. were to make their goal more specific, which is the “S” in SMART Goals, they could aim to increase their followers across social media platforms, including Instagram, X, Facebook, and TikTok, by 150, within a one-month time frame.</span></p> <p><b>Three great KPIs for us to stay on track with this goal may include:</b></p> <ol> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Measuring the number of new followers across all social media platforms we get each week.</span></li> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Checking the sentiment of our business using sentiment analysis tools, like <a href="https://sproutsocial.com/" target="_blank" rel="noopener">Sprout Social</a>, to see if our weekly sentiment has been positive, negative, or neutral. </span></li> <li><span style="font-weight: 400;">Measuring the weekly changes in direct messages, comments, likes, and shares of new followers on social media platforms. </span></li> </ol> <h3></h3> <h3><b>Tracking KPIs with Metrics</b></h3> <p><span style="font-weight: 400;">Another way for your organization to </span><a href="https://nismonline.org/actionable-metrics/" target="_blank" rel="noopener"><span style="font-weight: 400;">track KPIs is through metrics</span></a><span style="font-weight: 400;">. Additionally, the </span><a href="https://nismonline.org/level-up-your-digital-marketing/" target="_blank" rel="noopener"><span style="font-weight: 400;">co-founder of Revive Real Estate and business leader</span></a><span style="font-weight: 400;"> suggests that other effective ways for organizations to track and measure their KPIs concerning metrics include, but are not limited to: </span></p> <ul> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Website Traffic Volume</span></li> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Bounce Rate Percentage</span></li> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Social Media Follower Counts</span></li> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Newsletter Signups </span></li> </ul> <h4></h4> <h3><b>10 More Reasons KPIs Matter </b></h3> <p><span style="font-weight: 400;">To end our example on a strong note, it’s worth considering these </span><a href="https://www.linkedin.com/pulse/why-kpis-important-10-reason-key-performance-indicators-shone-fone-ng/" target="_blank" rel="noopener"><span style="font-weight: 400;">ten vital reasons why KPIs should not be ignored:</span></a><span style="font-weight: 400;"> </span></p> <ol> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Helps businesses measure progress and success.</span></li> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Provides insight into business performance. </span></li> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Enables businesses to make data-driven decisions. </span></li> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Helps identify strengths and weaknesses.</span></li> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Allows businesses to set and track goals. </span></li> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Improves communication and collaboration. </span></li> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Provides a basis for performance evaluations. </span></li> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Facilitates continuous improvement. </span></li> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Helps businesses stay competitive. </span></li> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Provides a clear understanding of customer needs. </span></li> </ol> <h4></h4> <h3><b>When Should I Start Creating My KPIs?</b></h3> <p><span style="font-weight: 400;">As soon as your business or organization has come to a consensus on one or more specific goals, then it is appropriate to begin creating your KPIs. </span></p> <p><span style="font-weight: 400;">A realistic approach to creating KPIs is as follows: </span></p> <ol> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Be sure that you have created a goal that is SMART (specific, measurable, achievable, relevant, and time-bound) and that closely aligns with your campaign or project’s overall goal. </span></li> <li style="font-weight: 400;" aria-level="1">Make a list of however many CSFs (critical success factors) your business or organization will need to aid in achieving your goal.</li> <li style="font-weight: 400;" aria-level="1">Ensuing the creation of your CSFs, you may begin determining your KPIs.</li> <li style="font-weight: 400;" aria-level="1">Once your KPIs have been set, investigate additional ways to monitor your progress with the KPIs you’ve chosen.</li> </ol> <p><span style="font-weight: 400;">The four steps outlined form a strong foundation for creating successful KPIs. </span></p> <h4></h4> <h3><b>What Are the Consequences of Not Using KPIs?</b></h3> <p><span style="font-weight: 400;">Up until this point, as we have learned how significant KPIs are to the success of any business’s goals, it is evident how devastating it could be if we are not to use KPIs at all. </span></p> <p><a href="https://www.staceybarr.com/measure-up/what-happens-if-we-dont-measure-performance/#:~:text=A%20summary%20of%20the%20consequences%20of%20not%20measuring%20performance.&text=Which%20means%20we're%20giving,all%2C%20or%20making%20things%20worse." target="_blank" rel="noopener"><span style="font-weight: 400;">Performance measure specialist Stacey Barr</span></a><span style="font-weight: 400;"> highlights several shortfalls of not using KPIs within your business or organization. In her list, the consequences of not having KPIs include: </span></p> <ol> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Guessing and giving up control over performance.</span></li> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Not knowing if our efforts are making a difference.</span></li> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Settling for mediocrity, making excellence unattainable.</span></li> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">The inability to anticipate and mitigate future problems. </span></li> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">No consensus on what success looks like. </span></li> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">No way to objectively prioritize.</span></li> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Uncertainty and lack of self-efficacy prevail. </span></li> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Data use becomes trivial, leading to misinterpretation and misuse. </span></li> </ol> <h4></h4> <h3><b>Closing Remarks</b></h3> <p><span style="font-weight: 400;">Whether or not you take advantage of KPIs is totally up to you. Just remember, KPIs are a surefire way to see if you or your organization are making progress toward your overall goals. </span></p> <p><img title="image1 - NISM Online" decoding="async" class=" wp-image-26694 alignleft" src="data:image/svg+xml,%3Csvg%20xmlns='http://www.w3.org/2000/svg'%20viewBox='0%200%20202%20202'%3E%3C/svg%3E" alt="Photo of the author, Sam" width="202" height="202" data-lazy-srcset="https://nismonline.org/wp-content/uploads/2024/10/image1-2-300x300.jpg 300w, https://nismonline.org/wp-content/uploads/2024/10/image1-2-150x150.jpg 150w, https://nismonline.org/wp-content/uploads/2024/10/image1-2-100x100.jpg 100w, https://nismonline.org/wp-content/uploads/2024/10/image1-2.jpg 348w" data-lazy-sizes="(max-width: 202px) 100vw, 202px" data-lazy-src="https://nismonline.org/wp-content/uploads/2024/10/image1-2-300x300.jpg" /><noscript><img title="image1 - NISM Online" decoding="async" class=" wp-image-26694 alignleft" src="https://nismonline.org/wp-content/uploads/2024/10/image1-2-300x300.jpg" alt="Photo of the author, Sam" width="202" height="202" srcset="https://nismonline.org/wp-content/uploads/2024/10/image1-2-300x300.jpg 300w, https://nismonline.org/wp-content/uploads/2024/10/image1-2-150x150.jpg 150w, https://nismonline.org/wp-content/uploads/2024/10/image1-2-100x100.jpg 100w, https://nismonline.org/wp-content/uploads/2024/10/image1-2.jpg 348w" sizes="(max-width: 202px) 100vw, 202px" /></noscript></p> <p><b>Author: Sam Cuellar</b></p> <p><span style="font-weight: 400;">Digital Marketing graduate from </span><a href="https://www.depaul.edu/Pages/default.aspx" target="_blank" rel="noopener"><span style="font-weight: 400;">DePaul University</span></a><span style="font-weight: 400;">, social media marketing intern at </span><a href="https://nismonline.org/" target="_blank" rel="noopener"><span style="font-weight: 400;">the National Institute for Social Media</span></a><span style="font-weight: 400;">, and </span><a href="https://liquidfactionband.com/" target="_blank" rel="noopener"><span style="font-weight: 400;">professional bass player</span></a><span style="font-weight: 400;"> with a passion for music, traveling, and weightlifting.</span></p> </div>  </div>  </div> <div class="et_pb_row et_pb_row_1_tb_body"> <div class="et_pb_column et_pb_column_4_4 et_pb_column_1_tb_body et_pb_css_mix_blend_mode_passthrough et-last-child"> <div class="et_pb_module et_pb_comments_0_tb_body et_pb_comments_module et_pb_bg_layout_light">  <section id="comment-wrap"> <h1 id="comments" class="page_title">0 Comments</h1> <div id="comment-section" class="nocomments">  </div> <div id="respond" class="comment-respond"> <h3 id="reply-title" class="comment-reply-title"><span>Submit a Comment</span> <small><a rel="nofollow" id="cancel-comment-reply-link" href="/the-secret-formula-kpis/#respond" style="display:none;">Cancel reply</a></small></h3><p class="must-log-in">You must be <a href="https://nismonline.org/sec-login/?redirect_to=https%3A%2F%2Fnismonline.org%2Fthe-secret-formula-kpis%2F">logged in</a> to post a comment.</p> </div> </section> </div> </div>  </div>  </div> <div class="et_pb_section et_pb_section_1_tb_body et_section_regular" > <div class="et_pb_row et_pb_row_2_tb_body"> <div class="et_pb_column et_pb_column_4_4 et_pb_column_2_tb_body et_pb_css_mix_blend_mode_passthrough et-last-child"> <div class="et_pb_module et_pb_post_nav_0_tb_body et_pb_posts_nav nav-single"> <span class="nav-previous" > <a href="https://nismonline.org/ftc-regulations-you-should-know-about-in-advertising-and-marketing/" rel="prev"> <span class="meta-nav">← </span><span class="nav-label">Previous Post</span> </a> </span> </div> </div>  </div>  </div>  </div> </div> </div> </div> <span class="et_pb_scroll_top et-pb-icon"></span> <footer data-rocket-location-hash="155604a850859755a30af4fa58d7687e" id="main-footer"> <div class="container"> <div id="footer-widgets" class="clearfix"> <div class="footer-widget"><div id="text-11" class="fwidget et_pb_widget widget_text"> <div class="textwidget"><p><img decoding="async" src="data:image/svg+xml,%3Csvg%20xmlns='http://www.w3.org/2000/svg'%20viewBox='0%200%200%200'%3E%3C/svg%3E" data-lazy-src="/wp-content/uploads/2017/03/NISM-transp-white.png" /><noscript><img decoding="async" src="/wp-content/uploads/2017/03/NISM-transp-white.png" /></noscript><br /> National Institute for Social Media<br /> PO Box 431<br /> Farmington, MN 55024<br /> <a href="tel:763-200-6476">763-200-(NISM) 6476</a></p> </div> </div> </div> <div class="footer-widget"> <div id="recent-posts-4" class="fwidget et_pb_widget widget_recent_entries"> <h4 class="title">RECENT POSTS</h4> <ul> <li> <a href="https://nismonline.org/the-secret-formula-kpis/" aria-current="page">The Secret Formula? 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