Performance Indicators

Performance Indicators

Key Performance Indicators (KPI)

  • A performance measure commonly used to evaluate the success of an activity
    • Making progress towards a strategic goal
    • The repeated achievement of some level of an operational goal
  • Should be defined in a way that is understandable, meaningful, and measurable
  • Choosing the right KPIs depends on having a good understanding of what is important to the organization
  • An objective comparison is achieved by recording a pre-launch metric and the same metric post-launch

Indicator Types

  • Actionable - indicators that an organization has the ability to change
  • Directional - indicators that help to identify whether an organization is improving
  • Financial  - indicators used in performance measurement and operating indices
  • Practical - indicators that can interface with an existing company process
  • Quantitative - indicators that can be represented as a number

Balanced ScoreCard (BSC)

  • A management framework for selecting the right KPIs to evaluate the success of an activity
  • Contains a mixture of financial and non-financial measures within a single concise report
  • Each measure is compared to a 'target' value 
  • Links leading inputs, processes, and lagging outcomes
  • Focus is on managing specific components to achieve the organization's strategic priorities

Key Performance Indicators for Web Sites

  • Data points that measure aspects of a site to determine the effectiveness of the site
  • A site's ability to engage visitors is determined by comparing KPI numbers with the goals of the site
  • KPIs are used to indicate those areas of a site that need improving

Campaign Performance

  • Use the Executive Dashboard to determine which campaigns produce the greatest value
  • Compare the Total Engagement Value and Relevance for each campaign 

Web Site Key Performance Indicator Examples

  • 'Cost per Lead' indicates those investments that are providing value and the ones that might need termination
  • 'Percentage of New Visitors' indicates how successful your marketing programs are in attracting new visitors to your site
  • 'Stickiness' is the level of depth and length of time a visitor spends in a specific content area, and indicates whether the content in that area should be updated
  • 'Visitors per Conversion' indicates how many visitors it takes for your website to achieve a goal

Sources