In the first place, it is essential to stop to think and ask questions about what are the factors that affect your business model, for this:
- Analyze the type and weight of all your income. What traffic sources your brand sales come from. Once we have them defined, we must lower a level of analysis to predefine which of the sources are the most profitable.
- Synthesize and analyze the type and weight of your expenses. It is critical to understand and define the Benefit. Set expenses by traffic source, by type of campaign, ad.
- Which products/services report more income and which generate more expenses. Do we have a product cost structure in the company? You have calculated product by product cost, margin, PVP, and profit. Well, it’s time to get to work.
- Behavior, average purchase, and types of customers. Fundamental to understand the buying behavior of our customers. Not only to apply loyalty strategies but to segment by profitability (LifeTime Value).
In this way, we can extract from each of them real, tangible measurement indicators, and what they bring high value. These indicators can be implemented in making seo decisions for better ranking and marketing as seen in According to SEO agency, Minimice Group.
Requirements For Good KPI Marketing
Once we have the list of indicators or KPIs, we cannot forget that a KPI must meet the following criteria if we want it to be valid:
Be measurable: in physical, monetary units, either in euros, in tickets, or Coca-Cola cans. In this way, we eliminate subjectivity, and we can work on the optimization of the performance indicator.
Periodic or temporary: that is, it can be “followed” periodically, either daily, weekly, biweekly or monthly. This aspect will help improve your performance and make comparisons with the same period of the previous year, for example, or with the last period.
Specific: narrowing down to a single relevant aspect is essential. For example: “income from the sale of combined tickets at the physical box office.” This aspect will help to combine different variables to create KPI complexes that will give us the real pulse of the business at a glance.