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Hey everyone, yes it's me again. So I am also writing an article on KPI vs Metrics for my client Whatagraph and I'm looking for some insights on the topic.
I would be delighted to quote you and the ideal person should be a digital marketer or agency owner for the same.
And my questions are:
• How would you define and differentiate both?
• How would you use KPIs in your business?
A metric is anything that’s measurable. There are a lot of things that can be measured that shouldn’t be. KPIs are specific things you want to measure that align with an outcome you’re aiming for.
We often choose KPIs based on their ability to be leading or lagging indicators of progress toward a goal. KPIs are a primary driver behind behavior as well and because of that, setting the wrong KPIs can cause you to do things that aren’t in your best interest.
For example, let’s say a marketing department sets a goal based on MQLs. In order to hit their MQL target under budget, what do marketers (and most people in general) they set KPIs around things like cost-per-lead.
The problem with this is that most people will take the path of least resistance, resulting in marketers running campaigns that generate a ton of leads with a low CPL without ever following things through to see how many turn out to be legitimate qualified pipeline opportunities. And when that happens, marketing may hit their goals, but sales won’t and neither with the company as a whole.
To avoid this, we set KPIs that align with business objectives around revenue and growth. Instead of CPL, we focus on CAC. Instead of MQLs, we focus on pipeline velocity.
Hope that makes sense.