It is no news that to create a good marketing plan we must set objectives to be met when defining the strategy in order to be able to study the effect that the plan is having. Although it sounds obvious, some people often do not spend enough time defining objectives and do not take KPIs into account because they are unaware of how much they can help us when creating communication plans. Therefore, we are going to define these concepts, indicate their importance and give different examples.
Objectives are concrete results to achieve within a relatively fixed timeframe that we set as a company. They could be objectives to increase sales, to gain visibility or to enter new markets. To define them, they should be SMART; Specific (as concrete as possible), Measurable (quantifiable), Attainable, Realistic (achievable but challenging numbers) and Time-bound (defined over a period of time).
The term KPI, which stands for Key Performance Indicator, is a formula that measures objectives and the progress of projects, and also reflects the performance of an organisation. These indicators are used in business intelligence to reflect the current state of a business and define a future course of action. KPIs should also be SMART.
In social media:
- Conversation rate = nº comments / nº posts * 100
- Amplification rate (how much our publications are shared) = nº of shares / nº of publications * 100
- Engagement rate = number of actions on our publications (sum of comments, likes, recommendations, clicks, shares…) / users reached * 100
- Community growth = nº of followers current month – nº of followers previous month
In email Marketing:
- Delivery Rate = Nº of delivered emails / Nº of sent emails * 100
- Open Rate = nº of opened (unique) emails / nº of sent emails * 100
- Unsubscription rate = nº of unsubscribed contacts / nº of sent emails * 100
- Conversion Rate = nº of people who completed the desired objective / number of sent emails * 100
At Area10Marketing we are a marketing and communication agency that gives defining objectives and KPIs the importance they deserve. For this reason, we believe that we develop marketing plans that are very complete and, what is more important, that allow us to monitor their performance.
If you want to learn more about targets and KPIs or need help on the subject, don’t hesitate to write us. ¡We will love helping you!