Setting KPIs for marketing is actually not that difficult. However, I feel that because there is so much information about KPIs, there are more and more cases where people set them incorrectly (because they do not match the level of their company, etc.).
KPIs are a guidepost to help you reach your goal without hesitation. There is no need to force it to be high-level or complicated (unless you have high greece telegram phone number list skills). Set KPIs that are easy to understand and clear, indicators that point you in the right direction, and ultimately help you achieve your goals.
This time, we will explain the basics of KPI management in the BtoB marketing department.
What are KPIs?
KPI is an abbreviation for Key Performance Indicator.
Key
Performance
Indicator
Literally, KPI is "a key indicator for achieving a goal." It can also be expressed as "intermediate goal," "process goal," or "intermediate indicator," but all of these are correct.
KPIs are merely indicators or goals for intermediate checks. Naturally, the optimal KPI will vary depending on the size of the goal and the individual's skills. However, they all have in common that they must be set so that the KGI can be achieved if the KPI is achieved (how to set KPIs will be explained later).
KPI is an intermediate goal (intermediate indicator)
KPI Conceptual Diagram
Difference between KPI and KGI
KGI is an abbreviation for Key Goal Indicator, which means a target or goal.
KGI for HR department:
Number of new graduates hired: 〇, labor costs reduced
There is a company-wide numerical target (KGI), and the numbers (KPIs) assigned to each department as targets to achieve that are the KGIs for each division. There are indirect departments that cannot set numerical targets, but departments such as marketing and sales, where results can be measured quantitatively, do set numerical targets.
The composition of KGI and KPI
KGI and KPI diagram
KPIs are set to achieve sales targets (based on the company's philosophy), which then become KGIs for each department, and the KPIs for achieving these are then further broken down to the field.
What is the difference between KPIs and KSFs?
In addition to KGI and KPI, more and more companies are now setting "KSFs (critical success factors)." There is no problem if you do not set KSFs, but doing so will have the benefit of making KPIs more accurate.
KSFs are generally said to be industry-specific success factors . They are set based on the company's strengths and weaknesses and the external environment (e.g., the economy, industry practices, etc.). Simply put, they are "guidelines that indicate the direction of a strategy and allow for the correct setting of KPIs."
KSFs also vary depending on the KGI, the industry, and the company's position. If the KGI is simply to increase sales, the following could be considered as KSFs for marketing in the SaaS industry. KSFs can be either numerical or non-numerical.
