When it comes to marketing your business online and working out the most effective ways that you can grow and attract customers over the internet, you will need to keep an eye on KPIs, which begs the question: what is a KPI and why are they important? Read on to find out more.

The Definition of a KPI

KPI stands for Key Performance Indicator, and these are a way that you can measure exactly how your business is achieving its objectives. Clearly this is very important when it comes to working out what your business is doing right, which is why so many companies focus on KPI reporting when it comes to planning future digital marketing strategies and analysing employee engagement. The whole point is to fully understand how successful a business is when it comes to overall performance; however, there are some KPIs that are carried out at a much lower level that are used in departments such as sales, marketing, HR and support.

How Can KPIs Help to Build a Better Team?

KPIs can be effective tools for measuring the success of a business from an economic standpoint; however, they can also help to build a better team in your business. When you think about it, KPIs are merely a metric that can define strategic success and act as a yard stick for areas that may need improving upon. They can help to build a better team by:

• Unlocking the power of employee engagement

Employee engagement is one of the most elusive and misunderstood concepts throughout the entire business world. The expectations of employees only seem to continue to soar and as such, workers are moving between jobs at a rate that would have been impossible decades ago. Sure, you can introduce a pizza lunch or dress down day to make working easier, but these are temporary fixes. One of the most effective ways that you can improve employee engagement is by informing employees fully about your businesses purpose. KPIs can do this very well because of the fact:

1. They get everyone on the team pulling in the same direction
2. They are able to connect an employees work to goals that resonate across the entire business
3. They are much more effective when it comes to reaching a business’s key goal

Are KPIs Still Relevant?

This is asked frequently as a lot of businesses are beginning to see the monitoring of KPIs as an inefficient practice. The fact of the matter is that KPIs are always only ever going to be as effective as you make them. If you are using your KPIs effectively, then you will be ensuring that all of the goals of your organisation are heading in the right direction, as opposed to having everybody pulling the business in a different direction to one another.

Conclusion

It is important to monitor your business very closely to ensure that everything being done is for the benefit of the business, not to mention, they ensure that everyone in the business is on the same page when it comes to progressing.