Q: What does KPI stand for?

I keep hearing this term and it seems like a “buzz word.”

Can you explain what it means and why it’s important?

And, is it true that if I focus more on keywords and SEO that my website, email, and blogging will be more effective?


KPI’s Determine What’s Working and What’s Not

A: KPI stands for ‘key performance indicator’.  A key performance indicator is what you measure to determine if what you’re doing is working. This is a business term used in the marketing, advertising, and sales realm. Typically each department or division of a company will have set KPI’s to evaluate success.

For example, when evaluating an email marketing campaign, you might track

  • the number of emails sent (based on list/community size)
  • the effectiveness of content (split testing subject lines and comparing open rates)
  • open rates (how many people open the email message)
  • CTR’s (click through rates = number of people who click on the offer)
  • sales (number of clicks that result in revenue)

Based on predetermined sales goals, you’ll be able to tell if the campaign is working by looking at the KPI’s. It’s always smart to write into your strategy and sales goals. This methodology gets better results than a haphazard approach.

Solid Systems will Accelerate Success

A caveat to consider, the KPI’s outlined here will be impacted by the email system, deliverability rate, and effectiveness of the content to connect directly with the PASSION points of your ideal clients.  If the emails system isn’t up to par, the deliverability rate of emails is being impacted by SPAM reports, or the content is milk-toast, vanilla fluff that doesn’t speak directly to the desires of your prime prospects (or is written by a rookie), your KPI’s will be negatively impacted.

Regarding your question about keywords and SEO. When you play to the numbers instead of writing to, and for, people your content will be impacted. Writing strictly to get search engine rankings or stuffing content with keywords for SEO purposes may do more harm than good. Remember, people are people, not numbers. They want to be treated as such (and savvy consumers see through anything less).  Simply put, solid systems, consumer-focused content, and clearly defined expectations will accelerate success and your ability to accurately measure KPI’s.

My best piece of advice is to be clear about your goals and set measurable, predicable KPI’s. Also, clearly communicate the KPI’s with your entire team. What can be measured can be managed and having the right systems, tools, and team in place will enhance the success of any part of your business that you want to measure and grow.

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Lisa Manyon is "The Business Marketing Architect," a content strategist for mission-driven entrepreneurs. She's the creator of the values-based "Challenge. Solution. Invitation.™" communication framework to create marketing messages with integrity by focusing on PASSION points (as seen in Inc. Magazine). She specializes in reverse engineering your most powerful solutions into profitable revenue streams. She offers coaching, consulting, copywriting training, and strategies to effectively market your business. Her content strategy plans are known to produce million-dollar results. She’s a #1 international bestselling author and award-winning speaker available to teach, train, and transform your audience with interactive Business Breakthrough Boutiques. She offers business-building resources on her award-winning blog. www.writeoncreative.com/blog

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