Key Performance Indicators, or KPIs, are an important part of digital experience tracking. What should you know and what is the best way to track these measures of performance and success?
First and foremost, it is important to mention that the number of KPI’s that an analyst can track are numerous and will often change based on the company’s business objectives and their marketing tactics.
Let’s start however with a quick refresher (or a new tutorial) on what is meant by key performance indicators.
A KPI is a “quantifiable measurement” that is used to evaluate the success of an organization, employee, etc., in meeting objectives for performance. In the case of websites there are several common (basic) measures of performance including the number of sessions, pageviews, the bounce rate, the time spent on a site, and of course conversions/conversion rate. These are, in general, the best (or at least most popular) metrics used to determine how well a site is performing (or how poorly!)
As you might imagine, key performance indicators are unique to every enterprise (they change depending on need); some marketing analysts will be concerned exclusively with sessions and conversions as it relates to the organic search channel, while others will primarily be concerned with time on site and bounce rate. Ultimately, it comes down to what the organization’s goals are and any metric should be viewed using that lens specifically.
There are KPI’s that are focused on the type of website which must also be considered. In the case of an e-commerce merchant, for example, some examples might include revenue per visit, while a content publisher might be more focused on goal abandonment rate or new versus returning visitors.
What is important to remember about key performance indicators is that they are 1) dependent on your business, sales or marketing goals, 2) unique to individual promotional channels (or at least best viewed in that context), and 3) must (MUST) be tracked over time. Only by tracking increases or decreases over time can you truly understand how well specific initiatives are working.
Key performance indicators are essential to the proper function of a business and the KPIs for websites can influence the strategic decisions made in the future for immense benefit.