Common pitfalls when developing KPIs

KPI’s – always needed, always a challenge. I think these are common pitfalls when developing KPIs:

1. Using ”out of the box”-solutions: You go with the metrics/KPI’s that a vendor has built into its reporting solution. How come Bounce Rate is a widely used metric for measuring online performance? Only because Google pushed it in Google Analytics.

2. Lack of advanced analytics: It’s good to know the churn rate for previous month. But it’s better if you also know the predicted churn rate for next month.

3. KPI’s are based on the data you have, not the insights you need: Starting with the data is like cooking with the ingredients that happened to be in the fridge. You can eat it, but it’s not what you wanted.

4. Same KPI’s for everyone: A campaign manager and a marketing manager need different KPI’s because optimising a campaign is different from optimising the marketing mix within budget to meet company goals. Same KPI’s for everyone = to many and/or irrelevant KPI’s.

5. To many or to few: 
 To many KPI’s = lack of focus. To few = important insights are missed. Think about Facebook and the consequences of their focus on one KPI, engagement: Algoritms pushing the most engaging material (fake news) -> scandal -> very costly…

Pitfalls with KPIs

Andreas Franson, andreas[@], +46 733 56 41 51

Andreas Franson


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