What organization can afford not to monitor its performance? Today more than ever, in a particularly unstable context, choosing the right indicators and the best way to monitor them becomes critical.
When we talk about objectives and measures of a company’s performance, the KPIs (Key Performance Indicators or Key Performance Indicators) come to mind spontaneously, followed more recently by OKR (Objectives & Key Results or Key Objectives and Results).
Behind these short acronyms and concepts related to running a business lie both fundamental and formal differences… and complementarities! In this first article, discover the definition of these concepts and concrete examples in the field of digital marketing.
Definition and examples of KPIs
What is a KPI?
The KPI – Key Performance Indicator – (or ICP – Key Performance Indicator -) is a Numeric indicator This must be determined BEFORE launching an action, in order to assess its impact and determine the ROI (return on investment). This is therefore a «post-event» measure.
Historically linked to traditional management systems, KPIs allow a company to properly manage and measure the effectiveness of its actions. They serve to evaluate performance continuously for an organization, a team, a program, a project, a campaign, an action…
KPIs are composed of 4 elements:
- Measure: The KPI defines the elements to be monitored and measured, for example the number of visits to a website
- Target objective: this is the defined value of the measure; the KPI must be realistic and demanding (e.g. 1,000 visits per month)
- Source of data: This is the place where the data that feeds the KPIs (databases, software, CRM, Google Analytics, etc.) is collected.
- Frequency: Annual, quarterly, monthly, weekly or daily data extraction frequency is defined according to needs
KPIs are always based on measures that can be implemented immediately, That is, linked to actions that have already taken place and can be tracked on a recurring basis, usually using a tool that serves as the data source (CRM, ERP…).
Attention, a good KPI is not just a measure: It must be based on the 4 components mentioned above, notably the frequency and the target audience, which are essential elements for measuring the effectiveness of actions over time, in relation to the expected result.
KPIs are particularly well suited when it comes to improving an ongoing “classic” project, in a familiar setting with “usual” actions”, Because the already proven indicators allow for effective and regular monitoring of progress.
Examples of marketing KPIs
Here is a non-exhaustive list of examples of KPI in the field of digital marketing To illustrate these indicators and understand how to use them effectively:
| Examples of KPIs | Other possible measures |
|---|---|
| Maintain the monthly newsletter open rate at over 50 % in 2023 (monthly measure in the emailing tool) | Number of newsletter subscribers, click-through rate, share of audience generated on the site… |
| Gaining 50 subscribers per month on the LinkedIn page in the first half of the year (a monthly measure on LinkedIn) | Number of impressions of posts, number of reactions, engagement rate… |
| Add 2 new content items per month to the program Lead nurturing for 6 months (monthly measure in the marketing automation tool) | Progress in lead maturity (score), open rates of associated emails, number of generated contacts… |
| Examples of KPIs | Other possible measures |
|---|---|
| Achieving 10,000 “natural” (SEO) visitors to the site in the 1st quarter (monthly measure in Google Analytics) | “Natural” audience share on the site, average time spent on a page, conversion rate for forms… |
| Generate 50 qualified web leads per month in 2023 (weekly measure in the CRM) | Number of new leads, rate of qualified web leads, cost per lead… |
| Organizing a webinar quarterly in 2023 (weekly evaluation of the organization’s progress in a dedicated table) | Number of registrations for events, average duration of attendance, number of post-webinar appointments… |
These examples show that KPIs can be used to regularly measure key performance indicators in an existing and defined context, In relation to the “daily” course of the company’s activities. Each figure represents the effectiveness of an action or project at a given moment T.
Definition and examples of OKRs
What is an OKR?
OKR – Objectives & Key Results – is a method developed in the 1970s by the co-founder of the Intel group, then implemented at Google, Amazon, LinkedIn, Spotify before gradually expanding into Europe and France. This is a a particularly effective method for setting clear priorities, fostering alignment and commitment among teams, and driving transformations with agility.
Each OKR consists of an objective (“O”) and key results (“KR” for Key Results) :
- Objective (where I want to arrive): this is a goal that must express a long-term vision, be inspiring, ambitious, and slightly uncomfortable; unlike most other methods, the objective here is not quantified, but expressed solely in a qualitative way, in a short phrase
- Key results (How I manage it): the Key Results They are the “evidence elements” to be sought in order to get as close as possible and as quickly as possible to the objective; they must therefore be measurable, limited in time, and above all reviewed periodically, usually every three or four quarters.
To remain focused on the priorities, it is recommended to limit oneself to 3 OKRs, i.e. 3 objectives, each with 3 key results, in order to maintain an overall view of the strategic deployment. These are the key results that could be confused with KPIs… but we'll come back to that in our second article!
Examples of OKR marketing
In order to understand the logic of Objectives & Key Results, Here are two examples of OKRs that can be applied to the majority of companies as part of their digital marketing efforts:
⚙️ OKR relationship marketing
The company’s goal: “Our prospects and customers form a loyal community”
Marketing objective: ”Our marketing is a desirable catalyst for the growth of our communities”
Period: from January to MarchExamples of KR (Key Results):
- % 50 active subscribers to the new newsletter each month over the period,
- +10 % subscribers to our LinkedIn page each month over the period;,
- 100 requests per month through the optimization of the lead nurturing process over the period,
- 5% of the site’s audience from the campaigns retargeting at the end of the period…
⚙️ OKR inbound marketing
Company goal: “Our digital transformation boosts performance”
Marketing objective: ”The web is our primary source of lead generation”
Period: from January to MarchExamples of KR (Key Results):
- +20 % “natural” (SEO) audience on the website at the end of the period,
- 80 % of the web leads validated by the sales team during the period,
- 1 in 4 appointments came from the web during the period,
- 500 people signed up for 2 webinars over the period...
These examples borrowed from the world of digital marketing already make it possible to concretely illustrate the different approaches between KPIs and OKRs… but also to identify their commonalities according to the measures or objectives pursued. Stay tuned for our second article to discover The differences and complementarities between OKRs and KPIs with a complete comparative table of their specificities!