What are Key Performance Indicators or Marketing KPIs

Lutfi

Key Performance Indicators Goods Units
Key Performance Indicators Goods Units

Rancakmedia.com – The following is an explanation of what key performance indicators, or KPIs for marketing, refer to quantitative methods used to evaluate program effectiveness marketing and departmental initiatives.

The right marketing mix consists of many interconnected factors, each with its own relative importance. These factors can be divided into the following four areas: product, price, location, and promotion. To make sure we don't overlook how they help people come together and find partners for business ventures.

In measuring the performance of this area, it is important to have some basic marketing of the various items. In this context, you need to study and think about revenue, sales volume, market share, customer satisfaction index, brand awareness index, and customer acquisition and retention.

The measure most often used to measure marketing effectiveness is sales revenue. It is used as a reference because it is easier to understand than more complicated calculations.

These benchmarks evaluate and identify how successful a business is. The size is expressed in currency, and the growth is percentage-based. Others consider this law to be about money turnover and money circulation.

Key Performance Indicators Goods Units

Units of goods sold is the volume of sales, as opposed to the overall product of money generated through sales. Sales reference measurement depends on the size of the sale. To measure market share, we look at the percentage of total products we sell compared to the products our competitors offer.

What are Key Performance Indicators

This form uses market share percentages based on data provided by market research companies and business associations, which provide information on the sales volume of different industrial goods. How one company's performance compares to the performance of their competitors is primarily about measuring a larger proportion of the market.

Management and performance of your workers to track customer happiness on the company's products, use the customer satisfaction index. Scores can range from 1 to 5 or 1 to 10.

To obtain these measurements, you can conduct your own studies or obtain them from numbers established independently to conduct this type of research. For its implementation, market research institutions and border magazines adopted ICSA (an abbreviation for Information Communication Strategy Alliance)

Brand Awareness Index

We can find out how famous and liked our company's brand products are through the brand awareness index.

In the same way that the customer satisfaction index provides a value score from 1 to 5, getting a value on a scale of 1 to 5 also produces those results. The difference is, with ICSA SWA magazine, autonomous institutions can carry out their own searches by implementing STBP. And Mars Market Research Institute is another possible route.

Finally, to evaluate how many previous customers they have left and how many new customers they have acquired, this metric is a measure of customer acquisition and retention. This customer size serves to separate customers.

For the numbers, put everyone into brackets based on their income and expenses. As the revenue of each customer increases, the amount of money spent increases, and therefore, the company's revenue will grow even better.

The following is an example of a KPI metric that a marketing department can use to build and distribute a feasible and reasonable set of afternoon activities to support the company's marketing.

  • Measurement: percent increase in sales revenue
  • Metrics: total sales revenue of new and existing product categories
    Unit of Measure: Rupiah

Growth in sales increases to total advertising or marketing expenditure. For measuring the benefits of an advertising or marketing investment, where one wants to know whether a particular amount of marketing expenditure is successful or not, this measure provides a convenient effectiveness measure.

  • Unit: Rupiah amount (Rp). Target: Ratio of new product to competitors.
  • Metrics: 5

Key Performance Indicators Customer-Based Brand Value

The index measures customer satisfaction with products, which is found through questions such as how often customers buy more products and how happy customers are with those products

  1. The percentage overlap between supply chain demand and expected demand for the product.
  2. The unit of measurement is percentage.
  3. KPIs are product levels in each category.
  4. How much money is spent on advertising and units as a percentage of overall sales.
  5. Percent Unit of Measurement

FAQ

What is KPI in Marketing?

Marketing KPIs are numerical marketing metrics that companies track to measure their progress in achieving goals in the marketing department.

Are the KPIs of Every Company the Same?

Because key performance indicators are a tool for measuring the performance of a company, key performance indicators must also reflect the goals the company wants to achieve. This means that each company's main performance indicators can vary according to needs.

Who Should Create KPIs?

Management sets company KPIs and determines which departments work and are responsible for achieving these goals. Then the HR department together with department heads create employee KPIs or operational KPIs based on their respective positions.

Conclusion:

In Indonesia, Key Performance Indicators (KPI) are quantitative methods used to evaluate the effectiveness of marketing programs and departmental initiatives. KPIs include revenue, sales volume, market share, customer satisfaction index, brand awareness index, and customer acquisition and retention.

For its implementation, institutions market research and border magazines adopted ICSA (Information Communication Strategy Alliance). KPIs are product-level within each category, and measure how much money is spent on advertising and marketing as a percentage of overall sales.

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Lutfi

Hi, let me introduce myself, Lutfi Hulasoh, I am a writer and techno blogger. I started creating a personal blog writing informative articles about the latest trends and developments in technology. My writing covers a wide range of topics, from mobile applications to artificial intelligence, and I can also provide easy-to-understand explanations to help readers understand complex concepts.