Different Types of KPI in Marketing

• Quantitative KPIs are few measurable facts that can be showcased with a number. It takes care of stats, percentages, and pound signs.

• Qualitative KPIs involve human interpretations and can’t be quantified with numbers. It identifies opinions, feelings, and experiences.

• Lagging KPIs measure which has already happened in the past to predict success or failure. It guides you to looking back at what you’ve already accomplished, or where you’ve struggled.

• Leading KPIs measure performance to predict future success and long-term trends. It helps you looking forward to where you’re headed.

“A performance management system is very critical to keep an ongoing track on the returns of the enterprise on its investment in people resources”, added by Adil Malia, CEO & Partner, The Firm.

Various Categories of KPI

Strategic KPI: It depicts how the company is performing, but it doesn’t provide much information beyond a very high-level snapshot. Few examples of strategic KPIs which are most likely to be used by the entrepreneurs are Return on Investment (ROI), profit margin, and total company revenue.

Operational KPI: This indicator demonstrates how the company is performing month over month, and day over day. It analyses different processes, segments, or geographical locations. These operational KPIs are often taken care by managing staff who analyzes the questions that are derived from analyzing strategic KPIs. Like, if an executive notices that the revenue of the company has decreased, they will promptly identify which lines of the products are lagging behind.

Functional KPI: It focuses on different departments or functions within a company. With this, the finance department may keep track of how many new vendors they have registered within their accounting information system each month, while the marketing department measures how many clicks each email distribution receives.

According to Tom Peters, “The things that get measured are the things that get done”.

Role of FTC in Marketing & Advertisement

FTC is an independent agency regulated by the U.S. federal government, which regulates advertising, marketing, and consumer credit practices. FTC also deals with complaints, grievances, or any kind of unlawful activities such as scams and deceptive advertisements. FTC also investigates fraud or false advertisements, congressional inquiries, and pre-merger notification.

FTC has created and passed a particular act called, INFORM Consumers Act, which helps the online transaction to become more transparent. The law depicts that, ‘online marketplaces’ where ‘high-volume third party sellers’ offer new or unused ‘consumer products’ must collect, verify, and disclose certain information about those sellers. This act provides a clear idea about what is required in online marketplaces.

Embrace the advantages of KPI analysis, unleash the potential, roar & soar in the limitless sky of business.

The definition of the act also explains that, if you are a “high-volume third party seller,” online marketplaces need to collect Bank account information, Tax ID information, and Contact information within 10 days. If online marketplaces can’t collect the required information from high-volume third party sellers, fail to verify and update it, or fail to make necessary disclosures, the online marketplace needs to face civil penalties of $50,120 per violation of the law.

Widely used, mobile-based applications like Whatsapp, Twitter, Snapchat, Instagram are coming up with new strategies to attract people by introducing new features in the application. With each update we get a new feature that is enhancing the services of the application. When it was launched it only had messaging option, but now to stay updated in the tech market, they have introduced audio and video calling. Very recently, Whatsapp has introduced payment option for its users by connecting with UPI which is effortless and efficient. Whatsapp channels are also there featuring public figures and influencers, different media. Lately, Instagram is introduced a new feature called friend’s story sharing, where they can create a story and share it with their friend’s story. in Snapchat we can create customized clipart and use them for making videos. These all features were added after scanning the market very deeply using different KPIs.

Wrapping up

By now, KPI is widely used by many industries like fintech industry, retail industry, tourism industries, manufacturing industries, logistics industries, but without a vigilant eye and careful knowledge KPI can push you into trouble. So, it is always better not to select KPI which doesn’t match your strategic goals. Don’t adopt poorly defined or vague KPIs. Try to set more realistic targets based on historical data, resources, and current tactics. Each KPI should have an owner for monitoring, reporting, analysis and action. Always be ready to track KPI tools and make prompt action based on KPI analysis.