What is a KPI?
KPI (Key Performance Indicator) is the metric(s) that you should be able to present to management to prove the value of your marketing campaign. They include things like keyword search, unique visitors and sales. However, they vary for all businesses.
It is important to understand your KPI before you start to work on a project. Understanding the KPI for your work will allow you to stay focused on your mission.
Which are the most important KPIs?
The simplest way to determine your KPI is to define your desired results + how you plan to achieve it.
While you could likely list hundreds of alternative KPI like Customer Lifetime Value, you might want to focus on some of the more immediately measurable KPIs when first starting out.
Why are KPI important?
You don’t need to/shouldn’t measure everything out there, but should have a clear understanding of the scope of your project. Your KPI should be the reason you take action for a number of things.
What is the danger of not paying attention to this KPI?
You will be acting blindly and making decisions based on a hunch. It should be rooted in data.