Sreejita Talukdar, Content Writer, Siliconindia

Advertisement and marketing are the two most vital factors in the vast sky of business. Whenever you are kick-starting a new business, it is very important to attract the potential customers towards your brand and product, or at least you need to abide by some channels to get closer to them. Advertising and marketing does the correct job here by educating the customers and letting them know about various ranges of products the brand is offering. Marketing plays pivotal role in growing businesses, but to stay afloat in the competitive market and magnify the return on investment (ROI), it's crucial to approach marketing as a process and to use all the benefits it can provide.

According to Mark Zuckerberg, “Advertising works most effectively when it’s in line with what people are already trying to do”.

Marketing helps in creating brand awareness, suggest different steps to strategize your business ideas to position the brand well using engaging and interactive content, also through the channels of marketing we can create customized messages to grab the attention of the potential customers. When we cook, we need to check if the seasoning is correct, or if the vegetables are properly cooked or not to get a perfect meal, likewise the marketers also have to check with few indicators to know how the marketing is effectively and successfully done. One of such quintessential indicators which help marketers to know market scenario well, is called as KPI or Key Performance Indicator.

Key Performance Indicator (KPI)

KPI is a quantifiable metrics which measures how your company can progress by achieving some specific goals or objectives. KPI is available in every horizon of a business like finance & banking, marketing, sales or operations, and so on. KPI assists you in identifying and determining how the initiatives can be met, maximize the return on investment (ROI). KPI uses data driven insights which let us know about the strategic decisions need to be taken. It also helps a marketer to know which campaigns or assets are underperforming.

KPI Vs Metrics

KPI and metrics are sometimes regarded as synonymous to each other, but in reality they both imply things differently. KPIs are strategic indicators exclusively used to communicate the progress of your business goals, on the contrary, metrics is used to indicate or track specific areas. KPI always has a specific objective, while metrics can help you to check and measure different segments of your business. KPIs always have a high-level perspective which identifies which goal will be effective according to the company’s objectives. Metrics are lower level indicators, and always track systems or processes which are bound to some specific department or business area.

Let’s take a closer look on how KPI is redefining the business scenario. Defining a KPI correctly is very important, as it plays fundamental role in effective tracking. Their true value is realized and measured through accurate monitoring.

“KPIs keep us accountable. KPIs provide the client transparency into what work we deliver and most importantly, KPIs demonstrate that we are on track and achieving mutually agreed upon goals”, contributed by David Krauter, SEO Strategist, Websites That Sell.

KPIs are used through well-defined KPI dashboards which are made with different tools that unite data sources and provide at-a-glance visual feedback showing how your business is performing against your key performance indicators (KPIs).

According to Peter Drucker, “If you can't measure it, you can't improve it”.