How to determine the KPIs necessary for your company?
Posted: Sun Dec 22, 2024 8:16 am
This is the first question we should all ask ourselves when we want to work with KPIs. Determining the Key Performance Indicators (KPIs) necessary for your company can be a difficult task if we want to do it correctly. However, by following the parameters we indicate below, you will be able to achieve it without any major problems.
Determine your KPIs with the SMART methodology:
The SMART methodology for defining objectives was devised by email lists uk George T. Doran, using the word SMART as a mnemonic rule (technique for retaining knowledge in memory) for the following words:
S : Specific / Specific
M : Measurable / Measurable
A : Attainable / Achievable
R : Relevant / Relevant
T : Time-Related / With a specific time
We will use this methodology, with a few modifications, to define KPIs in a very easy way.
Specific KPIs:
It is very important that you define your metrics specifically, what you want to measure with them. The more specific your metrics are, the easier it will be for you and your team to understand how the business is doing at a given time.
Having a generic metric like “number of visits to the company blog” is not the same as having a specific metric like “amount of organic traffic from content creation on the blog in the six-month period.”
Measurable KPIs:
Don't try to measure what cannot be measured. Formulating measurable metrics is vital.
We will use this methodology, with a few modifications, to define KPIs in a very easy way.
For example, trying to measure the number of people who, after considering you for a purchase, decided to buy from your competition due to time constraints, can be difficult or impossible to measure. Don't waste your time!
Attainable KPIs:
This is closely linked to the previous one, but with a subtle difference: the metric must be within your budget. Don't try to measure situations that you can only do with a specific software license or a specialist that you can't afford.
Take advantage, we are in a time where there are various tools that can help you for free or at a low cost.
Relevant KPIs:
Simple. Set metrics that are relevant to your business, this will help you guide it in the right direction.
Don't make the mistake of trying to measure everything. You have to accept that some things are just not worth measuring.
Time-Related KPI:
It is very important that you define periods in which you will take your measurements, only then will you be able to compare the direction you are going in and decide if you need to make changes.
Determine your KPIs with the SMART methodology:
The SMART methodology for defining objectives was devised by email lists uk George T. Doran, using the word SMART as a mnemonic rule (technique for retaining knowledge in memory) for the following words:
S : Specific / Specific
M : Measurable / Measurable
A : Attainable / Achievable
R : Relevant / Relevant
T : Time-Related / With a specific time
We will use this methodology, with a few modifications, to define KPIs in a very easy way.
Specific KPIs:
It is very important that you define your metrics specifically, what you want to measure with them. The more specific your metrics are, the easier it will be for you and your team to understand how the business is doing at a given time.
Having a generic metric like “number of visits to the company blog” is not the same as having a specific metric like “amount of organic traffic from content creation on the blog in the six-month period.”
Measurable KPIs:
Don't try to measure what cannot be measured. Formulating measurable metrics is vital.
We will use this methodology, with a few modifications, to define KPIs in a very easy way.
For example, trying to measure the number of people who, after considering you for a purchase, decided to buy from your competition due to time constraints, can be difficult or impossible to measure. Don't waste your time!
Attainable KPIs:
This is closely linked to the previous one, but with a subtle difference: the metric must be within your budget. Don't try to measure situations that you can only do with a specific software license or a specialist that you can't afford.
Take advantage, we are in a time where there are various tools that can help you for free or at a low cost.
Relevant KPIs:
Simple. Set metrics that are relevant to your business, this will help you guide it in the right direction.
Don't make the mistake of trying to measure everything. You have to accept that some things are just not worth measuring.
Time-Related KPI:
It is very important that you define periods in which you will take your measurements, only then will you be able to compare the direction you are going in and decide if you need to make changes.