‘How’ denotes the ‘process’ you will use to execute your strategy. Measure your success! Make your data tables easy to read. Each employee/team/department needs to have both external and internal goals and there needs to be an alignment between their goals. For example, do not use the bounce rate as KPI. For example, your business goal could be to generate $100k in additional sales in the next 1 year. at multiple levels (organizational level, department level, individual level). When it comes to earning buy-in and winning over even the most skeptical executive , the SMART goal framework can move mountains. So when a web analyst gives them a tactical dashboard they know exactly how to interpret the data, what conclusions to draw, and what actions to take. The metric that you choose as a business KPI must highly impact the corresponding core business goal. Although the higher the number the better for shareholders themselves. Everyone in the company must be pushing towards the same organizational goals. At the organization level, an ‘attainable’ goal should be based on SWOT (‘strength’, ‘weaknesses’, ‘opportunities’ and ‘threat’) analysis. Goal Conversion Rate = (Total Goal conversions / total visits) *100. Further reading. What are my company’s mission and vision? A direct cost can be something like the cost of manufacturing a product. What should be the outcome? You can greatly increase your website sales at the present conversion rate just by increasing the size of your orders (i.e. It is used to determine the effectiveness of your business in keeping production costs in control. Let us look at the internal and external goals of an SEO guy. Average order value = Total Revenue/Total ecommerce transactions, It is the percentage of people who came to your website and answered ‘yes’ to this survey question: “Were you able to complete the task for which you came to the website?”, Task completion rate = (number of people said ‘yes’ to the survey question/ Total number of survey responses) *100. Your core business goals must be SMARTER (i.e SMARTER core business goals). It should fit in one A4 size paper. They may or may not be directly tied to your core business goals. Following are the most common, core business objectives for an ecommerce business: You can find your company’s core business goals through ‘Key Performance Questions’ (also known as KPQs). ‘Who’ is involved in implementing your strategy. EPS is most useful as a comparison metric. KPIs indicate whether an organization has attained its goals in a specific time frame. Using this SMART process for defining your KPIs can help ensure that the KPIs on your Dashboards or KPI Reports are fit for purpose, relevant and ultimately successful . There are three broad categories of KPIs: Business KPI (also known as 'high level' KPI), External KPI (also known as 'low level' KPI) and Internal KPIs (also known as 'low level' KPI). Customer profitability score = Revenue earned through a customer – Total cost associated with customer’ acquisition, management, service and retention. Founders / top management executives should play a key role in setting up and monitoring the business KPIs. Your core values support your mission and vision and drive your day to day decision making processes. Before you can set up core business goals, you need to have mission and vision statements + well-defined core values in place. 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