There are hundreds of parameters that you can use to monitor your companies traction. However, a common misconstrued associated with KPI reporting is that you're best to have as much data as possible to then showcase to your executives or clients. KPIs are meant to be your KEY performance indicators, not just a load of data pulled in from an API and creating noise. To know what KPIs you should track follow these 3 simple steps;
Assess the relevance of available information
To understand what KPIs you want to track, you need to understand what information is relevant. From software tools you are able to export hundreds of metrics, but what's the point if you only need a few? Let's take the example of a department, so in Marketing you have certain campaigns with different objectives. One objective may be to build brand awareness, you do this by creating great content or through advertising or outbound marketing strategies. You are tracking each objective, whether this is through Call-to-Actions or emails, and then this is displayed through a platform like Hubspot or Google Ads. You need to collect the data that contributes to your lead generation flow. Once you assess this along with other objectives you should have a clear list of what metrics you need to export from each software tool and can then generate your high level KPIs. Although so much work can go into the low level KPIs like website engagement, CTA conversions, social media analytics, and website clicks to see whether you are meeting your objectives, the executive team may only want to see the high level KPIs, in this cause 'Lead to Marketing qualified lead' or 'Lead to Customer Ratio'.
Understand what information you need to report on
Whether you are reporting to your executive board or to a client you need to know exactly what information they want and whether you can retrieve it. As mentioned above, a lot of work goes into tracking low level KPIs, however that is not necessarily what your client or board wants to know. It's important to set up a meeting with your board, management or client to understand what they are looking for. For most executives this may revolve around financial metrics, knowing the cost per lead, sales revenue or Customer Lifetime value. Whereas for management they may be interested in how your A/B campaign is performing, or your clients' interests lay in customer retention or competitor comparison.
Understand if you can gather this information
When looking at your potential KPIs you also need to think outside your current platform. Very few software solutions are able to integrate across several platforms to give you an absolute picture. Think about it, you may use Hubspot as your Marketing, Sales and CRM platform, but use Google Ads, Facebook Ads and LinkedIn Ads to track your advertising cost. Secondly, your executive board may want to know the ROI so you'll need to integrate your manpower platform or project management software tool. By taking advantage of free trials that some 'client reporting tools' or 'KPI tools' offer, you are able to get a better idea of whether it will be of benefit to you. A free demo or call can also help you gauge the software's user experience and could prove beneficial to you understanding benchmark KPIs within your department.
At ServiceClarity, we LOVE to talk about KPIs, give us a call and we can chat about what KPIs your organise can track through our integrations. We work with many different departments including sales, marketing, engineering, product and finance to get your get the information you need. Click on the below integrations to learn more!
Or just join our weekly demo! Look forward to hearing from you!