5 Tips To Refresh Your Environment & Boost Your Energy

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What is kpi in marketing - Key Performance Indicators to Use for Marketing

KPI in marketing, known as Key Performance Indicatos, are performance indicators that can be measured in assessing the success of strategies and programs implemented by the marketing department.


Marketing itself is an ongoing process regarding the planning and implementation of the product marketing mix itself, starting from the product and price, place, and promotion. Do not miss services and ideas that aim to create exchanges, namely between individuals and organizations.


There are several important things that must be known in measuring performance of this marketing sector. These include revenue, sales volume, market share, customer satisfaction index, brand awareness index, and customer acquisition and retention.



What is kpi in marketing - Key Performance Indicators to Use for Marketing

What is kpi in marketing ?


1. Broadly speaking, sales revenue is a commonly used measure and is the main reference for measuring a marketing program.


Performance of a business as measured by these benchmarks and its very nature is very important. Amount is written in rupiah and the proportion of growth. There are also those who call this measuring the velocity of money or income that company receives.


2. In contrast to sales revenue, form of sales volume is a measure of the units, goods, products, or goods sold. This measurement is a measure of the sales itself.


3. For market share that is used as a reference in measurement, the products we sell are compared with similar competitors. It is the proportion of a market picture drawn from market research firms or industry associations that specifically sell market data for products in various industries. Market share is a measure of performance compared to competitors' performance. Performance management of your employees.


4. To measure customer satisfaction index for the company's products as assessed by the customer satisfaction index. score on this measurement can be on a scale of 1 to 5 or 1 to 10. Your own research can be done to get this number, or you can get it from an independent agency that has researched the measurement. For example, through the ICSA, which is carried out by frontier market research magazines and institutions.


5. Knowing extent to which measuring and measuring products offered by our company brands, these measurements are carried out using the brand awareness index.


Like customer satisfaction index, scores are assigned on a scale of 1 to 5, as are the scores. The difference is, supervision uses an independent institution that can organize the same IBBA as ICSA which is carried out annually by SWA magazine. It could also be through the market research institute Mars.


6. Finally, for customer acquisition and retention, is a measure to check number of customers, both existing and living customers and new customers. This customer size is also according to your choice.


For example, according to the amount of expenses or income. When  income of each customer increases, amount of expenditure increases, so that the company's revenue will be better.


Here's an example list KPI for marketing department:


1. KPI: Percentage sales revenue growth


2. KPI: Total sales revenue per old or new product category


3. KPI: The ratio total cost advertising or marketing to the growth in the value of sales. This measure is used to measure the effectiveness of advertising or marketing where an investment in advertising or marketing has produced unwanted results.


4. KPI: Number new products developed compared to competitors.


5. KPI: Brand value, the level customer perception of the brand value.


6. KPI: Customer satisfaction, level customer satisfaction with the product.


7. KPI: Percentage conformity between demand for goods with the original demand


8. KPI: Level product profitability category.


9. Percentage advertising or promotion costs total sales revenue.

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