Retail Media Monetisation Strategies
In order to understand how to create and implement better KPIs, we must first understand what a KPI is. KPI stands for key performance indicator and is defined as a quantifiable measure used to evaluate the success of an organization in meeting objectives for performance. It is the metric (or metrics) that you will use in achieving key goals.
Now that we have a bit more understanding of what a KPI is, how do we go about creating them? There are hundreds of different methods for doing this, but one of the easiest is asking yourself these two questions:
While the second question will provide you with the actual KPIs, it’s crucial to first understand what the goal is that we’re trying to achieve. The goal is the specific outcome or result, whereas the KPI is the metric that will tell you if you’re on track. For example, if your goal is to pass your next math test, some potential KPIs could include amount of time spent studying or previous quiz and test grades. Similarly, if you’re a retailer who is interested in digital advertising to promote product sales online – your KPIs might include total sales volume, ROI, revenue growth, or sales lift – all of which are metrics that would indicate if you’re on track to meeting your goal.
This may seem easy at first glance, but here are some common pitfalls and misconceptions to keep in mind when running through this exercise:
There is a lot to consider when creating and setting KPIs, but it’s worth it to spend time planning and making sure you are tracking relevant and insightful metrics that will lead to better performance and business outcomes.
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