How Many KPIs Should a Smart Company Track?

Three, in this case, isn't the magic number

The promise of digital centers around just how measurable everything is.

A marketer can go into an analytics platform and instantly see impressions, clicks, and spend by different audiences, times, and creative treatments. With on-site tracking, they can measure performance down to the individual marketing channel. The operations team is able to see how order volume changes during sales and by time of day. Finance departments can tie back every cent of revenue and cost directly to its source.

In theory, this data makes it easier to run an effective business. The marketing team can optimize around the best performing tactics, operations can forecast and plan for labor spikes, and finance has a clear view over how all of this impacts the company’s profitability. More conversions are good, less spend is good, on-time orders are good, and this is where most of our revenue comes from.

Digital platforms have become more sophisticated. The amount of data they collect and can report on has increased exponentially. This has been celebrated by many people in the business world. We agree — having that data available to a business is great. But companies should be diligent in how they consume data.
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Written by on May 26th, 2017 in Insight