KPIs should be set so that the cause can be clarified when the value of the indicator changes significantly.
When the indicator improves or worsens, it is necessary to investigate the cause.
If you know the reason for improvement, you can use it in the future, but if it worsens, you will need to take action.
A common example of poor KPI setting that cannot be explained is setting KPIs hospital mailing leads using big words on sites that are implementing multiple measures .
For example, "Improve CVR by XX%" can be a bad KPI setting in some cases.
Let's say you change the design of the product detail page and the top page in order to improve CVR. If
you only track the CVR of the entire site, you won't be able to determine whether the change is due to Measure A or Measure B.
Increase CVR by XX% via product detail page
Increase transition rate from top page to page X by XX%
KPIs like these should be set.
If you cannot grasp the effect of each measure individually, you will not know which measures to emphasize (prioritize).
Also, when growth stops or worsens, it will be unclear which measure is the cause. This will prevent you from making the most of each measure in the future.
The causes of change can be identified
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