As the introduction of digital transformation (DX) accelerates, various companies are working to identify their potential customers and realize customer success and business growth. When formulating effective measures, it is important to set KPIs that quantify whether the set goals are being achieved. However, “achieving KPIs” and “achieving the company’s original objectives” are not necessarily the same thing.
What kind of efforts are needed to correctly understand KPIs and use them as effective indicators? We will explain the planning method and thinking behind setting KPIs, which are essential for corporate growth.
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Ask Salesforce Professional Services! Points to keep in mind before implementing marketing solutions (2)
position the goal
KPI is an abbreviation for Key Performance Indicator, and is used to measure and evaluate whether set goals are being achieved. In Japanese, it is called an important performance evaluation target, and it is a necessary indicator for marketing. When a company sets KPIs for a new measure, the important thing to consider is, “What kind of benefits will the company gain if the KPIs are met?”
For example, suppose you set the KPI value to “1,000 new customer acquisitions” during a certain period. What is needed here is the perspective of “What kind of benefits will there be if I clear 1000 cases?” Rather than “clearing 1000 cases,” it is more important to consider “what will happen after completing the task.”
This means clearly positioning the company’s goals, and this is the first point you should set in order to take the shortest and most efficient route to your goals. First, set goals for your company, then develop strategies to achieve them. By setting KPIs for each milestone of the measure, you should be able to see the process to the goal.
Build a winning streak with KFS
The diagram above shows the overall picture that you should keep in mind when setting KPIs. Set a specific goal and develop a strategy (win-win path) that depicts the shortest route to that goal.
For example, if you want to promote electronic money or credit card services as the main payment method, you can set up various strategic ways to win, such as “introducing auto-recharge” or “getting people to use it for paying utility bills.” If you set up automatic charging from your bank account or credit card, you’ll have the advantage of eliminating tedious procedures, and if you also set up monthly utility bills to be debited, you can expect continued use. These winning strategies become KFS, which are called critical success factors, and the success or failure of that strategy is measured using KPI indicators.
Given limited budget and time, it is also important to decide which KFS to tackle and in what order. The key is to narrow down your targets efficiently and segment them into those who are highly likely to become your company’s customers, and those who are not.
summary
Setting goals is important for companies to formulate strategies. Use KFS to establish a winning path to the goal, and use KPI to set specific numbers to get there.
In order to successfully implement the PDCA cycle of planning, execution, analysis, and improvement in marketing, it is important to set KFS and KPI correctly. Be aware of your original goals and come up with effective measures that will lead to business growth.