The Definition of KPI

KPIs are data-driven metrics that connect business goals with actual company operations. They can also be used to identify problems and guide corrective actions.

KPIs can be company-wide or department-specific. Company-wide ones often lead to questions about why certain outcomes are occurring. Those questions can then lead to operational KPIs that are more granular.

Key Performance Indicator

KPIs perform several strategically essential functions: They help teams and individuals understand what they need to achieve, align them with strategic goals and measure their progress. They can also create a culture of accountability and encourage greater ownership and focused work.

However, determining what constitutes a key performance indicator can vary widely between organizations. The metrics companies choose to track often depend on their business strategies and management philosophies, and the KPIs individuals follow tend to reflect their individual priorities.

The best way to determine what to measure as your key performance indicators is to consider which data points are most important for achieving your strategic business goals. Ensure that the metrics you select meet the SMART criteria: they should be specific, measurable, attainable within a finite time frame and relevant to your business. Then, monitor your key performance indicators on a regular basis using a best-in-class BI platform to keep them up-to-date and accurate.

KPI Definition

A KPI can be a single calculated value or a combination of metrics brought together under one calculation formula. It requires data that is collected, analyzed and reported on a regular basis to support beneficial decision making.

Business KPIs are often monitored by leadership and financial departments. They focus on company-wide goals and objectives, such as revenue growth, profit margins and cost efficiencies.

Examples of a business KPI could include number of sales leads converted to customers, the average time to resolve a customer service issue and the number of new ticket requests received. Other KPIs are operational in nature and center on company processes, such as inventory turnover or the amount of time a team takes to produce a product.

A KPI should be measurable, attainable and relevant to a larger key business objective. It should also be tracked by someone on the team who will be responsible for monitoring it and acting on roadblocks that may occur.

KPI Examples

Choosing strong KPIs can help save time, get critical insights, guide the company on a long-term path and keep management focused. Identify the purpose of each KPI, how it relates to the company’s goals and monitor progress toward that goal.

KPIs can focus on various business functions, including finance, customer service, human resources, marketing and manufacturing. They can be strategic or operational.

A strategic KPI would be to increase monthly recurring revenue by $25K this year, while an operational KPI might be to decrease the number of days it takes to resolve a customer problem.

The type of data analyzed is another important consideration when selecting KPIs. Some KPIs are leading, meaning they provide information that may predict future performance, while others are lagging, which means they reflect activities that have already occurred. The former includes the number of overtime hours worked, while the latter might include the profit margin for a flagship product. Typically, companies choose a mix of both leading and lagging KPIs to measure their overall success.

KPI Trends

KPIs can be set at a high organizational level or for specific teams, projects or individuals. They measure performance toward a goal that is important to the company. They may be leading or lagging metrics. Best practices for selecting KPIs include alignment with business goals, active monitoring and timely reporting. Companies need to have the technology in place to collect and report data accurately, quickly and consistently.

For example, an employee satisfaction KPI could require annual surveys to track trends in satisfaction levels over time. A financial KPI might focus on ratios such as the debt-to-assets ratio or inventory turnover. Customer-focused KPIs may be centered on customer retention, satisfaction and the number of service tickets.

Unlike OKRs (OKRs are broad objectives for the company and the key results that will signify success in meeting those goals), KPIs are concrete, quantifiable measures that indicate whether a business is on track to meet its strategic goals. KPIs also can provide insight into potential problems or opportunities.

Frequently Asked Questions

What are the 4 types of segmentation?

Segmentation is an essential component of any successful campaign. Marketers must be able to identify and master four types of segmentation.

The first type is demographic. Demographics refer to age, gender income level, marital situation, education level and occupation. These demographics are targeted via direct mail, emails, and advertisements.

Segmentation can be used to identify which campaigns will work well with each group. One example is that a company might advertise during football games, which attracts male viewers.

Psychographics are the second type. Psychographics can be based on personality traits, such as values and beliefs, lifestyles, hobbies, interests, and values. These segments determine potential customers’ emotional connections with products and services.

Psychographic segments are “enthusiasts,” who love technology; “pragmatists,” who prefer practical tools; and “visionaries”, who want to live the best life possible.

The third type is behavioral segmentation. This information can be gleaned from user logs, surveys, online activity, and social media sites. This information helps companies understand how customers interact with them.

These behavioral segments include “consumers”, who buy often, “infrequent buyers”, people who don’t buy as often as they used to, and “abstainers.”

The fourth type of segmentation, geographic, is the final. Businesses can use geographic segments to identify the places where their customers live, work and shop.

Geographic segments also include “urban dwellers,” “suburbanites,” “rural residents,” and “expatriates.”

Marketers have the ability to segment in a variety of ways to send targeted messages to people that are relevant to their needs and wants. But, it is best to combine multiple segmentations to reach customers.

One example is targeting suburban men aged 25-45. You can combine these two elements to make your message appealing to both men and women.

How can I create a video for my business?

Video production is an essential part of any business. Video production helps you convey your message clearly, concisely and effectively. A well-produced video can help to build brand recognition and support your company.

A great video can help you make a difference in the success of your business.

It takes a lot to plan, prepare, and stay focused when producing video. You should think carefully about what message you want to convey, how it will be delivered, and to whom it is being said.

You won’t be able to make your video useful if you don’t have a plan. It will become just another YouTube video that isn’t watched by anyone.

Start by defining your goals. What is your goal? Who are you trying to reach? Where do they hang out online? And why should they care about what you have to offer?

Once you’ve answered all these questions, it’s the right time to choose your tools. Be sure that your tools support your goals. You shouldn’t use webcams if your goal is to attract customers around the world.

After you have selected your equipment, you must decide where to shoot. It could be in a studio, your living room, or outdoors. This decision will depend on several factors such as your budget and available space.

You must decide what you want to share in your video. You can think about your audience, and then write down everything that you want to say.

Be sure to allow yourself plenty of time to edit the video before you share it on social media. It’s possible that something unexpected might happen in the editing process.

Follow our tips to create a business video that is high-quality and produces results.

How to make an SME video?

First, find a niche you can fill within your industry. This is where you decide the type of content to create for your target audience.

You may have already done this research, but if not, then now is the time to do it. It’s also important to understand how much time you are willing to spend creating your videos because there is no point in creating a fantastic video if you don’t have enough time to promote it properly.

Once you’ve decided on your niche and have determined how long you want to invest in producing your videos, the next thing you should consider is who you will use as a platform to share them. Depending on what your business model is, you might sell them directly to the audience.

Partnering with another company to split the profits is another option. Many companies are open to new partnerships. It could be a good opportunity for you, or anyone else, to team up with them.

There are many revenue streams that can be generated from your videos. You could sell advertising space (i.e. Google Adsense), products (i.e. Amazon Associates), and subscriptions to your mailing lists (i.e. MailChimp).

What are the major categories of marketing?

The main marketing categories include promotion, public relations, advertising, sales, direct marketing, branding, customer service, and distribution. Each category has its own objectives and strategies.

Promotion: These activities are designed to increase awareness of a brand or product. Promotional activities may include paid SEO (SEO), email advertising, display advertising, or other forms of digital marketing.

Public Relations: Public relations builds relationships between brands and people. PR professionals develop and manage relationships by providing newsworthy content and promoting positive publicity for clients.

Advertising: This is where advertisements are created to promote a product or brand. Companies pay money to advertise in magazines and newspapers, billboards or radio.

Sales are the sale of products or services. It involves closing deals, negotiating, collecting payments and delivering goods or services.

Direct Marketing: Direct marketing is about one-to-one communication. This can be done through mail, email, catalogs or phone calls.

Branding: A brand is the act or creating a unique identity for your company. A brand is everything that you do. Your brand image includes your logo, tagline (or slogan), colors, website design and advertisements.

Customer Service: Customers can use customer service to help solve their problems and resolve any issues they may have with your business. It includes answering emails, answering phone questions, and resolving complaints.

Distribution: This is the process of getting your product to market. It involves handling returns and shipping products.

What marketing strategy has been the most successful?

The most successful marketing strategies are those that have been repeatedly proven to deliver results.

The ones that make people take notice and remember what you do.

Marketing for the public sector should be based on the evidence. People respond better to visual communications than to text-based messages.

We must also look at data to see how much money was invested, how many people were reached, what their reach was, and whether or not the message was getting across.

We must also consider the effect of the campaign on the organisation. The campaign’s impact on the organization should not be limited to the individuals but also the wider community.

This will allow us to determine if the campaign was successful or not. If it wasn’t, we don’t know why. What went wrong? What did it go wrong?

To create real change, we must first ask: Who’s my target audience? How can they be found? What is the best way to get in touch with them? Which are the best ways you can reach them?


  • Recent research suggests that 62% of businesses have developed a variety of explainer videos, making them a critical asset for small, midsized businesses (SMBs) introducing their brand to the world. (
  • 65% of people learn visually, which makes creating video tools an invaluable strategy. (
  • 49% of people watch a minimum of 5 videos every day. (
  • The company attracted 37% of new customers from Instagram Stories ads. (
  • Because people visit 1.5 billion destinations every month based on their Google searches, and 76% of those who search for something nearby visit the store within one day. (

External Links

How To

Video Marketing Ideas for Local Business – A New Way To Promote Your Local Business

Businesses use social media channels and websites to promote their products and services online. This method is most effective when traffic comes from natural (or organic) sources such as search engines and social networks. You should however consider video marketing if you want your business to be seen by potential customers that don’t know how to find you.

This guide will teach you how to use video marketing for your business growth without spending any money. Everything you need to know, from how to create a video to how to make money using YouTube ads. Let’s get started!

#1 Video Creation Tips for Small Business Owners

These are the things you need to do before you start filming.

  • Location: Is there somewhere specific you’d like to film? If so, you should think about the best location.
  • Equipment: Do your have any special equipment for filming? Perhaps you have a tripod. ?
  • Audience: How large is your audience? What will they be able to comprehend? Consider the content you produce and who your ideal customer might be.
  • Budget: How much can you afford for quality content creation?

You can find out more about selecting the right camera and lenses to suit your needs in this article: DSLR vs. Mirrorless Cameras.

Perhaps you could hire someone to make the video. Freelancer and Upwork allow you to hire small businesses or freelancers to create high-quality videos for a reasonable price.

Once you have selected a location and chosen some keywords, it’s the right time to start planning your video.

Here are five tips for brainstorming success:

  1. Keep It Short and Sweet. People love short videos. They are quick and entertaining, as well as easy to watch. Plus, people tend to spend less time watching longer videos.
  2. Tell a Story. A story that is interesting and well-told is always good. If you’re selling something, tell an interesting story about your product. Stories allow people to connect and enjoy sharing stories.
  3. Be Visual. Add images to support your point if possible. These visuals are visually appealing and will allow you to add links to additional resources, if needed.
  4. Include Quotes. Quotes can add value to your video. For key messages, use quotes from famous persons to illustrate them.
  5. You need to ensure your sound quality is excellent. Make sure to record audio in a calm environment. Avoid using headphones and microphones that pick up outside noise.

Create Great Videos That Get Shared.

Now that you have a plan, here are five ways you can share your video across various social networks:

  1. Facebook: Share. Facebook allows you to share videos directly from your computer easily. Click “Share” below the video and select which platform you’d like to post it on.
  2. Tweet. Twitter users can easily share videos and increase exposure by retweeting them. Click the retweet link below the video to do this.
  3. LinkedIn. LinkedIn is a professional networking platform that is used mainly by companies and organisations. Sharing your video will help you reach new potential clients.
  4. Instagram: Share. Instagram is a photo sharing app that allows users to upload videos. This makes it ideal for connecting to other influencers, brands, and bloggers.
  5. YouTube. YouTube is the most popular video-sharing website. Paste the link of your video into the search box, and then hit Enter.

Ways to Promote Your Video

You have put so much effort into creating a video that you want it to be seen. Here are some tips to help you promote your video on the internet:

  1. Post on Social Media. Post your video via Facebook, Twitter, Pinterest Google+, Google+ and LinkedIn. Every network has its own audience, so you might want to post on more than one platform.
  2. Reach out to Influencers. Reach out to influential bloggers and send them a tweet about your content. Many people will read their Twitter feeds every day and reply to your tweets immediately.
  3. Start a conversation. Join relevant communities on sites like Reddit, Quora and StumbleUpon. Answer questions and interact with others who share similar interests.
  4. Encourage others sharing. Ask your contacts if they know of anyone else who may find your content helpful. Let them know about your video, and ask them to pass along the link.

Attract New Clients

What now? The hard part is getting your target audience to view your video. Marketing your brand and business has many options. Four different ways to increase traffic to your video will be covered.

  1. Interact With Other Users Interacting with others on social media is a great way to get attention. Commenting on someone’s posts or answering a question makes you visible to others. Try commenting on posts related to your niche or industry.
  2. Join Communities. Another way to meet people who are interested in your niche is to join communities. These groups discuss specific topics. Take advantage of these conversations.
  3. Ask Questions. Start a conversation by asking questions if you’re unfamiliar with an idea or concept. People enjoy talking about themselves and sharing their experiences and knowledge.
  4. Use Hashtags. Hashtags can be keywords or phrases that you include at end of your message to help with categorizing your messages. These keywords are often used in text messages, but they quickly became a standard on social media. You can use hashtags to increase visibility and enable others to view your videos.