KPI’s (Key Performance Indicators). BeerMe Brewery Company Ireland
- Paola Salcedo
- Apr 1, 2019
- 4 min read
Updated: Apr 3, 2019
Key Performance Indicators are the aspects and characteristics of a business or an organisation performance in order to succeed in the future. In addition, KPI’s focus on clients. Moreover, KPI’s are implemented to evaluate a process and as a result of that analysis different measures could be taken to improve the performance of a brand, company, business or an organisation. KPI’s help companies to see their revenue in detail and to evaluate their insights to determine their figure in terms of profit. To conclude KPI’s are useful to present reports of a company’s “performance, development, and position”.
Businesses should choose the proper KPI’s when analysing their performance. It will help companies to see if they are doing well or bad and it will suggest how these businesses might improve their performance. First, identify first “both lagging and leading performance indicators”, it basically means “how the business did and how the business is doing”. Lagging is the number of outputs (results) a company has achieved. For example, the total sales within the company, the new clients or entries, and the time the business spent in customer service. Leading is the inputs of the business which means the objectives the company wants to achieve in the future. For example, indicators might be “sales opportunity, conversion rate, and website traffic”.
KPI’s are used differently depending on which type of industry is going to be measured. In the case of “BeerMe Brewery company”, the main Key Performance Indicators will be the number of visits on the webpage and the time users are spending on the site, the number of customers who contact the business to get the product, the total sales of beers and the time spent given customer service. The website traffic will be analysed by looking at the number of visits per month in order to evaluate the increased or decreased of visitors. Based on traffic results as a new website, BeerMe will set up a target every month about the percentage the business will need to achieve when trying to increase their audience. For example, the indicator the business will follow for the first month online will be the growth of their audience by 2%. Different type of sources will be considered such as mobile phones and tablets in order to interpret user’s behaviour. For example, how much time they spend on a specific page.
Another point to take into account is the number of clients who contact BeerMe. In this case, the company should try to keep those customers in order to build a long-term relationship. A marketing campaign might help to retain those new visitors. The business should think of offering to customers something in return for their visit. For example, setting up a promotion or a deal like “get two for one” or “try our new selection of beer for free when spending €50 or more”. It is also important to have a look at where those visitors are coming from, ergo, if they are from organic search, coming from any of the social media the business is on or if that traffic is the result of paid ads.
There is different KPI’s to measure user’s behaviour when visiting the website. One of the keys BeerMe will apply is conversion rate. The idea is to determine how many visitors of the website are buying the product. BeerMe will keep sending them promotions and discounts to make them engage with the brand and therefore, the company may build a long-term relationship. BeerMe will also keep an eye on competitors. KPI’s help businesses to see if they are growing within the market when comparing to other companies that offer the same product.
Another Key Performance Indicator to develop is customer service. BeerMe will measure this indicator to study how customers like to be approached and how the brand can satisfy their needs and as a result it might increase its sales revenue. BeerMe will take it to improve their performance is the “net promoter score”. BeerMe wants to expand the brand and it will create marketing strategies to make their customers recommend their brand to others. BeerMe will set up a promotion on their social media, specifically on Instagram, offering three €50 off voucher for those who tag a friend and share the post. This action will encourage clients to spread the word and recommend the brand to their network.
To conclude, BeerMe will apply as KPI’s the traffic on the site, conversion rate, sales revenue, and customer service. The brand will not only evaluate its website but also its social media channels. BeerMe will analyse the insights of its Facebook, Instagram and Twitter account. To evaluate social media insight companies should consider the number of followers and how they are interacting with the brand. To measure this interaction, BeerMe will see how many people are following them, how many likes they get on every post, how many comments they have on a post and what people are saying about the brand and if they are sharing the information.
Finally, it is to say the Key Performance Indicators may help businesses to define their objectives according to their target audience and this may help to the success of a company. Setting up clear goals and using the different digital tools available may help any brand to succeed online, reach customers and position in the market.
留言