To define a good OKR, you need to look at the expected outcome and identify the next step that needs to be taken to achieve it . Having that clarity will help you focus on specific areas, one at a time. KPIs, on the other hand, can be broken down into:
- Primary: Information collected directly from the source such as revenue, leads, and traffic;
- Secondary: Data that monitors primary metrics, such as average ticket, cost per lead, and traffic source;
- Tertiary: explanation of the data indicated in the primary and secondary indicators, such as which pages were most visited in the month.
Learn now how to use OKRs and KPIs in your company!
Know your business goals
After diagnosing the current situation peru phone number list and understanding what needs to be improved, the first step is to discover where you want to take the company.
Look at how it is right now and how you want it to be in the future, relating it to the competitive advantages, mission and vision of the business.
In this way, each objective must have clear goals of what to do to achieve it, and the best methodology to define these objectives is the SMART goal . This method is a great ally to focus on what really matters when building a specific, measurable, achievable, realistic and time-bound objective.
For example: increase the number of leads by 20% by July 2021. In this case, if the goal was simply to “increase the number of leads”, we would have very generalized information. What does this “increase” mean? How much should we add, in fact? How long should this be done?
Set goals with short deadlines
In essence, OKRs should be defined in traditional marketing is dead short cycles, of a maximum of three months. This shorter time frame allows for rapid testing and identification of the response of the actions implemented, with the least possible loss.
With a longer timeframe, it will take you more time to know the results and make adjustments. On the other hand, the response time is also very important to have enough information to provide plausible evidence and arguments. That is, set goals and give yourself enough time to understand if you are on the right track or if you need to adjust your tactics during the timeframe defined for the OKR.
Define what the key indicators are
After defining OKRs, identify which asb directory information can influence the results you want. For example, if you want to create a campaign to increase subscriptions to a page, you will probably need to measure the conversion rate of the acquisition channels.
Note that we are talking about something that shows the signal (indicator) of the goal in a qualitative way (numbers), allowing it to be measured ( metric ). Therefore, each key result must have one or more KPIs that help measure the effectiveness of the strategies designed to achieve it.
By following the indicator and observing the numbers, comparing them with the expected results, you can see which strategies are succeeding and which are not working as they should.
It is important to remember that in digital marketing, we have an avalanche of information that can be measured, such as views, visits, traffic source, pages accessed, and many others.
That is why it is so important, and necessary, to define KPIs to know which data is relevant in the midst of so many insights . Below, look at some examples applied to the main performance indicators:
Efficiency indicators
This is about the quality of the company’s products and services, for example:
- durability of a product;
- percentage of customer complaints;
- period for the provision of a service.
Effectiveness indicators
These are indicators that indicate the use of the company’s resources such as:
- number of hours worked per product or service;
- amount invested for the execution of processes;
- hours of downtime of running software.
Effectiveness indicators
Effectiveness is the union of efficiency and effectiveness indices. These indicators serve to show quality results and use of resources, for example:
- number of loyal customers;
- number of bugs found in the system;
- number of calls answered.
Productivity indicators
These ratios show the company’s operating results. The most commonly used are:
- turnover rate;
- investment in qualification;
- flexibility index.
Capacity indicators
This type of indicator is used to analyze team productivity and compare it with previous periods. Here are some examples:
- number of closed sales;
- conversion rate;
- number of leads generated.
Competitiveness indicators
They serve to indicate the company’s position in relation to its competitors such as:
- market share index;
- participation of third-party capital in total resources;
- growth rate over a given period.
Profitability indicators
They identify what the business potential is, compared to the investments that were made, for example:
- operating and net margin ratio;
- return on capital employed;
- return on assets;
- general debt ratio.
Profitability indicators
They allow us to analyze performance against the company’s potential in generating benefits such as:
- ebitda margin;
- accounting, financial and economic break-even point;
- gross, net and operating profit margin.
Value indicators
These are indices that show the company’s appreciation in the market. Some examples are:
- profitability percentage;
- net present value;
- net working capital.
Understand how to measure your results
The frequency of time to measure these results is also a very important decision because an analysis carried out too early or too late can lead to wrong decisions. This evaluation should be done by measuring the KPI.
However, there is no exact frequency for measuring an indicator. It is advisable to understand how long it takes to generate sufficient information on OKRs and KPIs and apply tests. Google tools, for example, take time to generate this data and all these factors must also be taken into account.
Additionally, you can define a responsible person for each OKR, allowing those KPIs to be monitored more closely by each team member. It is also important to ensure that this data is shared with the team in real time.
If you know how to use data to your advantage, you can have a huge advantage in carrying out your strategic planning. Ultimately, having relevant information can prove that you are on the right track.
Using OKRs and KPIs can provide this assurance, helping you in your decision making. Remember to choose indicators that are linked to what you need to measure.
Do you want to know how to measure your team’s productivity capacity? Find out what a company’s productivity indicators are too.