“If you can’t measure it, you can’t manage it.” It’s a well-known saying that’s been repeated by many big names in management theory. And it’s also very true: How can you measure the progress you’ve made without a well-defined measuring tool? That’s where KPIs, or key performance indicators, come in.“

For many years, SMEs were often limited to measuring the performance of their marketing campaigns by looking at their bottom line. But with all the radical new advancements that have hit the market—the arrival of artificial intelligence, the growing power of Industry 4.0 and the increasing globalization of commercial transactions—it’s become crucial to evaluate your SME’s performance using other variables.

KPIs are one of them. A key performance indicator allows you to track the effectiveness of a strategy using specific goals. For this reason it is viewed as a decision-making tool and part of the continuous improvement process. This quantifiable element needs to be established before the launch of any activity in order to be able to properly evaluate that activity’s repercussions. When analyzed on a regular basis—whether daily, weekly or monthly—it lends itself well to many applications.

From theory to practice

The growth rate and return on investment (ROI) are two kinds of KPIs that are frequently used. While they’re mainly used in finance, marketing managers are also in on the game. Other indicators enable managers to monitor observed progress and any actions to be undertaken to keep an activity on target. Whether it’s determining the success of a product in a new market or customer satisfaction, a correctly used performance indicator can get you closer to your goals.

An entrepreneur who aims to measure website performance can take advantage of a range of indicators, such as the number of unique visitors, the number of pages visited and the clickthrough rate or bounce rate, for example. All performance indicators need to be quantifiable to enable precise measurements that will remain consistent over time. A KPI that is simple and trustworthy is easy to understand and will inspire the trust of those who need to make quick decisions and avoid bad choices.

3 steps for choosing your key performance indicators

1) Define your campaign objectives

Your choice of KPI should be determined by clearly defined marketing objectives. What are they? Are you looking to grow your number of subscribers, boost your brand recognition or increase traffic to your website? You need to know what you want to measure in order to find the right answer to identified issues.

The goals you establish will determine the kind of performance indicator you need. If, for example, the number of pages visited on your website is not part of your goals, then there is no point in seeking out a bunch of tools created to provide that data.

2) Choose relevant key performance indicators

The challenge is to choose indicators related to the goals you identified in the previous step. For each indicator you choose, you need to determine what your criteria are for success and failure depending on the results you’re aiming for. Finally, limit the number of indicators to use. The important thing is to find a few well-targeted KPIs and master them in order to make the best decisions possible.

3) Personalize your chosen KPIs

Don’t feel limited to the standard KPIs. Be creative—feel free to alter them depending on your needs at any given moment. Adapt them to your specific work culture, sector of activity or past history.

Finally, remember that a key performance indicator is a powerful motivating force within a company. Share your progress in order to mobilize your teams towards achieving your targeted goals!