What is a KPI? 24 examples of most actionable KPIs for your Business.




Why should you care?

The two Biggest Problems - 

1. How many times, you log into your web analytics tool and feel overwhelmed by all the metrics, Dimension, and reports that exist there? With few lines of javascript code, we have more data in our analytics tool than we actually need it. We think that the more data we have, more insights we will get. But it is hardly the truth.  

2. And the second big problem is - We, analysts and marketers, work very hard to find insights, make a great presentation about it but most of the time we feel like that our work isn't get appreciated as much as it should. The problem is that the metrics( pageviews, impressions, clicks, Avg. session duration etc.) we choose to report to the executives may mean a lot to us but it has no value to our senior executives. They just don't care about it. They care about knowing, is the business getting better or worse over time? They care about understanding, How much satisfied are our customers? Is there anything we can do that will help us to delight our customers and make even more money from them? They want to know Where should they invest the companies precious money to maximize the ROI? How can we beat our biggest competitors and get ahead of them? Stuff like that. 

Yes, Data is important but it is not the solution to this problem. Hard to believe. Right?.

The solution is our ability to understand what is the difference between a good and bad metrics/KPI?  It's about asking the right question before even touching a single piece of data in our web analytics tool. It's about the process and thinking that we applied in our work.

So, let's try to figure out a way to get the most out of this fuzzy world of Data and Let's make our life simpler and easier.

What are you going to learn in this post? -


B.  24 Examples of great KPI -
    

     

Are you Ready?

Let's get started.

A. What is a KPI? 

A Key Performance Indicator (KPI) is a metric that helps you to understand how are you doing against your business objectives.

As we discussed earlier that metrics like Avg. session duration, Pageviews, Page like and followers all are good metrics to have but they will never be a Key Performance Indicator (KPI). 

Let me give you an example, why they can't be a KPI -

Pageviews - 

Pageviews simply tell you that someone sees a page on your website. That's all this metric tell you.

Suppose I came to your website and saw 5 or 10 pages.

Does this mean a success to your business?

There are two possibilities.

First, It could mean that I liked the content of your website so much that I couldn't able to control myself and keep reading or viewing products one by one. It was an amazing experience.

Or It could also mean that I visited your website and looked at 5 or 10 pages and still couldn't able to find out What am I looking for and left your website after getting frustrated.

You can't tell for sure If the experience of the customers was good or bad by just measuring the Pageviews. It doesn't give you the insights that will help you to make a business decision.

But Visitor loyalty and recency is a great KPI. It tells you how much loyal your customers are and what is the gap between two visits by the same person on your website. So does the cart and checkout abandonment rate, Likelihood to recommend, Per session goal value etc. These metrics are Relevant, useful and instantly actionable.

Let me give you a simple analogy which will clear everything, something that we are all very familiar with - "It's Love"

Little bit NSFW. So if you are below 18, please leave this post right away, only for Professionals :)

Scenario 1 - Love objective ( business objective in our case) -

Marrying the Girl/Boy, who stole your Heart.

KPIs/Metrics -

1. A Kiss on the cheek - 

Good to have.

So What?

Definitely, it tells you that she/he likes you or maybe think you are cute. But it doesn't mean that she is going to marry you. 

2. Had sex with you - 

Obviously better than a kiss :)

But still not a great KPI. Maybe she likes you or it's just the spur of the moment, you both get excited and had sex :)

Fair, right?

3. Multiple Orgasms -

Yes, Multiple orgasms, better than having sex only one time :)

It tells you that she really like you and want to spend time with you.

Better than the previous KPIs but still not so good. We can do better than this.

4. Meet the Parents -

Yes, this is a great KPI to measure how far or good are you and what are the chances that you are going to get married to your dream girl. This KPI is a great sign that you are leaving behind all those other guys who are after her. It gives you a strong indication that you are very close to your goal.

And Once her Parents said "yes, you both have our blessing." you are all set and done.

Now, you will set different Love objective and use different KPI to measure it Because getting married is not enough :)

Scenario 2 - Love Objective - 

Having a one-night Stand -

Now, If you use "Meet the parents" as your KPI then you know, you are already in a big trouble :)

See, the same person but very different KPI to measure the success depending on what are you trying to do?

So, always remember that there is no such thing as "Here is the list of KPIs, take it and you will be fine." Every business has different goals and marketing strategies etc, So, you will choose the KPI which is most relevant to your business. You can't even copy the KPIs from your direct Competitors.

Choosing the right KPI for your business totally depends on Understanding what the business is trying to solve for ( What is their business objectives) and What are the Macro and Micro goals of the websites? Why does the site exist?

You have to first understand these things before doing anything else.

Let's see some examples of Great KPIs for E-commerce and Non E-commerce businesses breaks down into 3 categories - Acquisition, Behavior, and Outcome.

A. Acquisition KPIs/ Metrics.


What is Acquisition?

Acquisition refers to everything you do to attract customers to your website. Things like driving traffic from PPC, SEO, social media, Display and email campaigns, Billboard & Tv ads etc.

Examples of Acquisition KPIs -

1. Cost per Acquisition - 

What is it? -

Courtesy of Avinash


CPA is the total cost of your campaign divided by the total conversions from that campaign.

In simple English, How much is it cost you to convert a customer? Conversion could mean a purchase for an E-commerce website or Lead for B2B website or a simple Newsletter sign-up for a blog.

One of the biggest challenges small businesses face is the lack of money. There is nothing more painful than this. Every day they are trying to grow their business but the lack of money always keep them away from achieving their goals. 

So CPA is a great Acquisition KPI for small businesses. Measuring this KPI make sure that you only invest your precious money in campaigns, keywords or channels that generate the most value for your business & punish every campaign, channel that refuses to do so. You do not only want focus, you want hyper-focus. For every dollar you spent, your goal is to get most out of it.

Cost per Acquisition is great KPI, use it whenever you could. If you want to go one step higher than this then measure Revenue per Acquisition.

Few things to keep in mind, when using it -

1.  You will compare each and every channel against each other to find the best ones even if it is Social media. Lots of time people say that oh, it is social media, it is different. We can't compare it with other channels. Never ever do that. Give your love to the channels which really cares about you and your business.

2. A second thing to remember is that this is just the cost, not the profit. Remember to calculate it.

2. Click-through Rate( CTR) -

What is it? 

It is a ratio Which helps you to understand how often people see your ads and then click on it.

CTR = Clicks impressions

In simple English, It helps you to understand how much useful/relevant is your ad to the customers.

The more relevant your ads will be to the customers, more people will click on it and come to your website to buy from you. Only seeing your ads is not enough, if people don't click on it then those impressions are useless.

CTR helps you understand, which one of your ads or keywords are matching with the user's intent and how much effective they are in driving traffic to your website.

A high CTR also helps you to rank higher in Paid search with less money.


3. % New Sessions - 

What is it?

It is an estimate of the percentage of sessions by users who visited your website or App for the first time.

In Plain English, It helps you to measure which acquisition channels, sources/medium, campaigns are bringing new customers to your business. Finding new customers is very essential for any business to grow.

But keep in mind that you don't only want new customers, you want the right customers for your business. We can trick customers to visit our website with some cool hacks & tricks but it's not going to build a sustainable business for you. You want the most relevant customers to your business. So to understand which channels are bringing you the right customer to your brand you also have to look at the Behavior and outcome KPIs along with your Acquisition KPIs. You have to focus on the complete customer journey, from start to end, not just a part of it, which we will discuss later in this post.

4. Share of Global search volume - 




Share of global search volume measures % of search queries on a search engine that results in a visit to your website.

Consider this case, Suppose Right now, you are getting 10,000 visits from Google. Your team worked very hard on PPC and SEO and able to grow the traffic to 100,000 visits.

A total 10x increase in search traffic, definitely a cause for celebration. Right?

But, there is a big problem when you only look at your own data and don't take any kind of context from outside.

What if there were 100,000,000 searches on Google related to your business from the U.S.

So, Is the traffic you are getting is enough?

Share of US search volume = 100,000/100,000,000
                                             = 0.1 %

Sad, right?

The share of Global search volume, show you the reality. It protects you from getting blinded by your own data. It shows you how much inventory is available and how much are you getting out of it.

Instantly practical and useful. That's a great KPIs/metrics looks like. It's like a mirror. It can tell you if you are doing good or bad over time.

As in the above case, we certainly did well but when you look at the Share of search, you know that this is not enough. We are leaving a lot of opportunity and money on the table. And nobody wants to do that. So find a way to get more traffic from search because there are plenty of fish to catch and fry.

Please, read this post by Avinash on how to calculate it for your business - Two amazing Bar charts - % content consumption, % share of search.

5. Click-to-delivery Rate (CTDR) -

We all know that email Popups are a big rage nowadays in the digital marketing community. You have it, I have it, everyone has it. And there is nothing wrong with it. Email marketing is one of the cheapest and very effective marketing medium. It is one of the best forms of permission marketing.

But only collecting email is not enough. We also have to understand the quality of our email lists.

CTDR helps you do that.

So What is it?

Click-to-delivery Rate(CTDR) is the ratio of the number of clicks divided by the number of emails delivered.

CTDR = # of clicks / # of emails delivered

Note - Here we are not talking about an email sent but successfully delivered. The reason for this is that some % of your sent email will end up in the spam folder or maybe someone is trying to screw you up by giving the wrong email address because they want that awesome Free PDF that I or you are pimping on our website :)

CTDR is a great KPI because it helps you to measure the relevance and effectiveness of your message.  It helps you to understand how much good or bad Is your message that customers can't control themselves to click on it and visit your website to read or buy something from you or just ignore it because it sucks.

Segmenting this KPI will definitely give you a huge datagasm. Always apply segmentation to your KPIs.

B. Behavior KPIs/metrics -

What is Behavior? -

Behavior refers to the activities people undertake on your website.

Examples of Great Behavior KPIs -

6. Bounce Rate -

Bounce Rate is the percentage of visitors to a particular website who navigate away from the site after viewing only one page.

In Plain English, It means someone came, Puke and left :)

Bounce rate is one of the most important & delightful behavior KPI packed with the amazing power of proving great insights about the behavior of your customers.

Whether you are in E-commerce, Non-E-commerce or daddy commerce, everyone can use it without worrying about anything. 

We spend lots of money, time and other resources to drive traffic to our website. But the question is that is the sources/mediums, campaigns, and keywords etc. are bringing the right customers to our business or not? And if it is then are we sending the right customer to the right landing page or to a  wrong, sucky landing pages on our website?




Measuring the bounce rate of your Top landing pages, sources, referral URLs, campaigns, keywords etc. is a great way to fix things faster and save a lot of money because most of your customers are entering your websites through these pages or keywords. If you can't fix the leakage, then you can't make money. And Bounce rate is your best BFF, which will help you to find those criminals that are killing your business.

Just go for it.

7. Cart & Checkout Abandonment rate - 

Another great KPIs to fix the leaky bucket.

Cart Abandonment Rate - 



In Percent, the total number of sessions in which a customer find what they are looking for and added it to their cart but didn't proceed to check out for any reason.

It could be anything, maybe a customer added a product to the cart to easily access it because they want to buy it later, or maybe they are doing price comparison or simply want to know the shipping cost of the purchase or the availability of the product because we didn't tell the customers upfront.

Understanding why a customer abandoning the cart is very important because they already showed some initial commitment to purchase and if businesses do their work properly then they can push these customers to make a purchase.

One of the best way to understand this why part is using an on-exit survey when a customer abandons the cart.

Check-out Abandonment Rate - 




Improving the checkout abandonment rate is the fastest way to make a lot of money or losing a lot and file for bankruptcy.

Why?

Because at this stage, the customers already loved what you are selling, they loved everything about the product they are about to buy and can't wait to get it delivered to their doorstep but suddenly the marketer screwed up everything by asking the customer when is he/she going to get married( just joking). I mean they started asking the customers irrelevant questions that have nothing to do with the purchase or forcing the customers to create an account rather than letting them check out as a guest or you didn't provide multiple ways of making a transaction etc.

Just by improving 2 to 3 pages on your website, you can have the most impact on your business's bottom line. Super important to measure because Checkout abandonment rate helps you to understand how much good are you in receiving the money when a customer decided to give it to you.

Stop doing everything else and first fix this at any cost. You will be glad that you did it and get ready for a big bonus or a Promotion because it is important.

8. Page Depth -  


Most of the time, when we are trying to measure the customer engagement with our website, we choose lame metrics like Avg. pages per sessions or Avg. session duration etc. But these metrics, only going to give you an average result.

Go for the distribution and measure the Page Depth.

Go to Audience > Behavior > Engagement > Page Depth to access the report.

What is it?

It simply shows you the distribution of how many pages a customer sees during a session/visit to your website. or How deep customers went on your website.

Though a very small percentage of people going to see more than 4 to 5 pages depending on your business. But, it is ok.

Your job is to find ways to move more people to the end of this distribution. More engagement, more money for you.


9. Visitors loyalty and Recency( Frequency & Recency) - 

Go to Audience > Behavior > Frequency & Recency 



If you want to take your customer engagement analysis to the next level then go for the Visitors loyalty aka Frequency and recency.

Visitors loyalty simply measures how many times a single customer visited your website during a given time period. It measures how much sticky is your website that customers can't get enough of you and keep visiting multiple times to buy or consume all the amazing contents that you are writing for them.

It is good that someone visited your website and did something that is valuable to you but that is not enough. You want them to visit multiple times because most of your customers aren't going to buy or convert in their first visit. If most of your customers aren't visiting at least more than once then it is very unlikely that your business is going to be the next Billion dollar startup.

Set a target depending on your business and measure what percentage of your customers is exceeding that target. If not enough, then find out why and fix it Because Customer Loyalty is important.

Visitor Recency ( Days since last session) - 




Visitors recency tells you how long it has been since a visitor last visited your website. In other words, It measures what is the gap between two visits from the same customer to your website.

If you have a website like a newspaper or any websites that update their contents daily or more frequently, then you want people to visits your website more frequently to consume all those new awesome contents that you are producing than someone who publishes fewer contents. Visitor recency helps you to measure if you are able to achieve that goal or not. It helps you to understand - Is the content on your website worthy enough that people care to come and read it more often.

One important thing to keep in mind when using this report is that by default, this report also includes the new visitors who have never been to your website into "0 days ago", bucket which is totally wrong. Because of that reason, if you look closely at the above pic, you will see that I have removed the all user segment and only applied the returning user segment at the top of the report.

Visitor Loyalty and recency is a great KPIs because it forces business to leave the one-night stand mindset and focus more on customers and long-term growth of the company. Without satisfied customers, you won't have a business to run. So, solve for the customers.

10. Page Value - 



Page Value is the average value for a page that a user visited before landing on a goal page or completing an E-commerce transaction(or both).

In other words, Page value helps you to understand which pages on your website helping you to drive more conversions and revenue.

It measures the influence of a page ( Macro + Micro).


Another great advantage of measuring page value is that even the content websites like mine which has no major Macro goals like selling courses, books or Adsense revenue, I can still understand which contents on my blog is most valuable to my readers. What kind of contents I need to produce more to engage my audience.

The only requirement is that you have created goals for your website and assign values to those goals in your Google analytics.

11. Conversation & Amplification Rate -

Conversation Rate - 

Conversation Rate is the ratio of comments per post ( or video or tweet or pins etc) to overall followers ( or page likes).

It helps you to measure if a business is just shouting on social media or making a meaningful conversation with their customers.

Amplification Rate - 

Amplification rate is the ratio of shares ( or retweets or repins etc.) per post to overall followers ( or page likes).

Amplification rate helps you to measure the quality of your posts and tweets. It helps you to measure if your posts are relevant and useful enough that people like to share it with their friends and followers.

To learn more, Please read this post - 8 advanced techniques to measure the success of Social media's organic and Paid efforts.

12. % Content Consumption -



Courtesy of Avinash

It's not a surprise that Content marketing is huge across every industry. Whether you are B2B or B2C, we all do it. But the biggest challenge with content marketing is determining what content to produce and what to not? Because if you don't create a content that is relevant to your audience then you can't able to keep them coming back again and again.

To fix this problem, most companies rely on their gut feeling, they think they know the answer but that is hardly the case. Which only leads to sub-optimal performance.

% Content consumption exactly helps you to solve this problem. It shows you the mismatch between, what contents you're producing or think your readers want vs what the readers actually want. It tells you what contents or topics, you need to focus more on and less on what.

In the above pic, the blue bar represents the percentage of content produced by the business on each topic and red bar shows the percentage of actual consumption by the readers on each topic. And you can see that there is a huge mismatch between creation and consumption.

How to do it for your own business? -

Let's take an Example of the BBC website.



1. First, You will count the amount of content in each section on the website, which you can find in CMS of your website. In the case of BBC, the sections are News, Sports, weather, shop, Earth etc.

2. Then, you will count the Unique Pageviews in each of those sections, the data will be in Google analytics.

Unique pageviews are the count of all sessions during which a page is viewed at least once. Unique pageviews remove the multiple views of the same page during the same session.

3. Then, you will create a simple table like this in excel.

not the actual BBC website data.


4. Then, you will create a clustered column chart like this.



And you are done. One thing you will keep in mind that your goal here isn't to have a perfectly matching the height of the clustered column for each section and you shouldn't be. Your goal here is to fix the sections where there is a huge mismatch between content creation and consumption.


13. Task Completion (By Primary Purpose) -

The biggest mistake businesses, analysts or marketers make when it comes to finding insights or understanding more about their customers is that they don't utilize the potential of Qualitative data

Most of the customers on your website doesn't come simply to Buy from you. They come for various reasons like checking customers review for a product or contact the customer support because they are not happy with their purchase, or for price comparison, or to see if the product is available to buy because in their previous visit it was out stock or can't find the right size for it etc. 

Only focusing on the customers who only come to buy from you which is generally 2-3% of them, you are neglecting the 97% of your customers, Which is a big mistake. And Non of your web analytics tool, no matter which one you use can tell you " Why someone visited your website or why they buy or didn't buy from you or Why they added a product to their cart but didn't make the purchase? 

To understand the "Why", you need qualitative data.



When you measure the task completion by Primary purpose, you know "why" someone visited your website? Are they able to do for which they visited your website? If not, then why not?

A must have KPI for any business to measure. When you do this, you don't solve for the tiny portion of your customer, you solve for the 100% of your customer. You make your business more customer-centric and create a long-term growth for your business.

14. Visits with Search - 

Suppose you or I want to buy a new mattress and visited the Amazon website.

Do you think, you will Go to - Shop by category > Home, Kitchen, Pets > Furniture > Bedroom furniture > then finally to mattresses. ( btw, It took me more than 10 minutes to actually find it on Amazon.) 

or You simply type " Mattresses" in the search bar? 

Search bar, Right?

You can see why "Search" is so much important for any business which has lots of products or contents. Customers don't like to wait anymore, they want everything instantly within seconds and they expect that businesses provide them the information very quickly and correctly. They expect you to understand and show the right result when they type things like" Tommy Hilfiger red sneakers for men." 





Internal site search report in Google Analytics gives you the ability to understand what people are looking on your website? Are they able to find what they are looking for or not? How many times they have to refine their search term before getting the right result. What % of your customers are using the search function on your website and what is the impact of it on your business? 

They are lots of amazing insights hidden in this report. Understanding the search behavior of your customers and their impact on your business is a great KPI to measure for any businesses whose customers are highly dependent on search for finding products and information. 
  

C. Outcome KPIs -

What is outcome?

Outcome refers to the things that add value to your business bottom line. 

15. Macro Conversions - 





For E-commerce website generally, it is Revenue and Conversions rate which simply tells you how much money are you making? and If your customers are converting at a rate that you had expected? For other businesses, it might be newsletter signup, donation, revenue from Adsense, leads or subscription etc. 

If you have a small business, you are going to focus like a hawk on your Macro conversions. You will try to figure out which City, regions or channels etc. are generating more revenue for you so that you can put more of your money into these channels to increase the revenue over time and kill the sources/mediums, campaigns, keywords etc. that are not helping you to do that.

You will do everything at your disposal to move these numbers because this is the lifeline of your company.

16. Economic Value - 

Economic value is simply the summation of value you get from Macro conversions and Micro Conversions. 

Apart from Macro conversions, your website also does lots of small jobs that are important for your business. 

Like if I go to the Nike website







You can see, apart from selling products( Macro ), there are lots of other things that the website is doing that is important for Nike like creating an account, Finding store direction, sign up for newsletters, becoming a member, following them on social media or applying for a job etc.

As I said before that the average conversion rate is only 2-3 % which means if 100 people visited your website then only 2-3 people are going to buy from you, so it is also important to measure the micro conversions that directly impact or leads to your macro conversions.

So, when You measure your Macro and micro goals you truly solve for all of your customers, you move beyond the 2% and measure the total impact of your website. When you measure the macro and micro goals, you will realize that your actual conversion rate is much higher than the sad 2%.

To measure the Economic value all you need to do is, Go to the Conversions > Ecommerce > overview > Then pick the total revenue




Then Go to Conversions > Goals > overview > and pick the Goal value and add them together.


You can see some of the micro goals for this website are Engaged users, Registrations, Enter checkout and Smart goals. The only thing that is not good here is they didn't add Goal values to their goals. You will never gonna do that. Whenever you will create any goals for your website, you will always add the Goal values to it, to calculate the Economic value. It will also help you to find more amazing insights from your analytics reports as we saw above.

Please read this post to learn how to do it for your business - How to assign goal values to your goals.

17. Average Order Value - 

The average order value is simply the amount of revenue divided by the total number of orders.


If you look at the above pic, you can see that when the conversion rate is higher, the Average order value is lower and when the conversion rate is lower then the average order value is higher.

So even though you could have a higher conversion rate still your revenue can be low, So it is always good to measure the Average order value because it will give you the initial clue about the cause of it in your analysis.

Another benefit of using Average order value is that it helps you to understand the effectiveness of your cross-sell and up-sell strategies on your website. 

Here is a great post by VWO on increasing the AOV - 8 ways to increase average order value for e-commerce.

18. Per Session Value ( Average revenue per session ) -

Per session value is simply the total revenue divided by the total number of sessions. It helps you to understand which channels or marketing strategies are helping you to earn more revenue per visit by the customers to your website. 

Let's see why this is an amazing KPI. 

Click on the Pic to see in Higher resolution.

If you look at the above pic, you can see that Avg. order value for social media is way higher than the Organic search. But if you look at the revenue and number of transactions, you can see that Organic search is doing way more amazing than social media.

Per session value help you to fix this problem. You can see that the per session value of Organic search is $1.09 compared to only $0.18 for social media. So, if you have to make a decision about where you should put more of your money then it is definitely organic search, not the Social media even if your boss believe that social media is the future because nowadays people spend more time on social media. 

You saw that though Average order value is great a great KPI,  it can still screw you if you don't seek context from other awesome metrics. Always ask for context to get a clear picture.




To make things more interesting you will measure Per session Goal value Because it forces you to move beyond the 2 % and take into account the very delightful KPI the " Economic value" that we discussed above. 

19. Outbound links and Downloads-

Tracking and measuring the value delivered by outbound links are really amazing outcome KPIs. 

If you have a website that makes money from affiliates links or Adsense ads or maybe you are selling books on Amazon through your website etc. Measuring their value is amazing because you are making money even if it is not happening on your website. Outbound link tracking helps you to do that.

Tracking downloads is also a great way to understand outcomes of any websites that use PDF, Whitepapers or Product catalogs to inform customers more about their products and services. You can use campaign tagging on the links in the pdf, so whenever someone clicks on those links and visit your website to buy something or subscribe for monthly services for your saas products, you can easily then able to measure the outcome generated by those pdf downloads and then you can use that as Goal values for your download file goals in your GA account.

For tracking both of these outcomes you need to do Event Tracking. The easiest way to do it by using Komito analytics with Google Tag manager. Komito analytics does event tracking for you automatically for most used common events like pdf download, outbound links, forms submission etc but if you have any complex custom event tracking then you have to take help of your web developer.

20. Time Lag and Path Length -

Time Lag - 


Time lag shows the distribution of the number of days it takes someone to make a purchase/convert after their first interaction with your website.

Path Length -



Path length shows the distribution of the number of visits it takes someone to make a purchase/convert after their first interaction with your website.

Both these metrics help you to understand how quickly and slowly your customers convert.

If you look at the above data, you can see that more than 50 % of the website visitors convert on the first day of their visit to the website and 74% of the customers converted within 2-3 visits. So, this website has very few opportunities to converts these customers, after 0 days, someone will buy from them goes down very abruptly.

Due to this, this business has to find a way to convert these customers as quickly as possible, maybe offer some kind of discount or anything else or at least collect their email address so that they can contact and convert them later because once the customers are gone, the chances are way too low to convert them later. 

But if your data shows that the customers are converting at a slower pace then it would be a good strategy to let them convert in their own pace, give them more information about your products and services rather than keep pushing them, again and again, to convert early. 




If you have a Non-E-commerce website, you can also use this report. As you can see in the second picture that the E-commerce selection field is missing in the conversion type as opposed to the first pic. You can also apply conversion segments to this reports to get deeper insights which are located at the top of the report and you can also see the data for only for the Adwords traffic, just switch from All to AdWords in "Type" selection tab.

21. Monthly Active user - 

Who remembers the Silicon Valley's "Daily Active users" season 3 last episode. If you don't, no need to worry about it.

Here is what happened -

Almost everybody at the Pied Piper company was excited and enjoying the party because their App was about to hit 500,000 installs , except the CEO of the Company - Richard Hendricks."

The reason for Richard's worry was that though lots of people were installing their app but their daily active users were kept going down the hill, means customers were not using the app because the app was great for Engineers and Tech people but very confusing for the customers who are actually going to use the App.

Using App install as your KPI doesn't tell you anything about the usefulness of the App to the customers. It doesn't force you to go down the rabbit hole and understand more about your customers experience with the App. It doesn't force you to worry about customer retention.

But measuring Monthly Active user do. It forces you to work towards the long-term growth of the business, which is both good for the business and the Customers.

So, Go for the Monthly Active user(MAU). The daily active user is good but MAU is better, it will help you to find more valuable insights from your data. It will help you to spot trends in your data and also make it easier for comparing different time period. Comparing 6 months of data is more valuable and easier than comparing 6 days of data.

22. Likelihood to recommend - 


As you already understand it. It simply helps you to understand what was the overall experience of your customers with your website and the services you provide. Is it so good that they will recommend your business to their friends and families or it's not? A great KPI to understand the perception of your customers about your business.

23. Lifetime Value ( Revenue per user) -



Lifetime value helps you to understand which channel, sources, medium etc. are helping you to acquire most valuable customers to your business. Lifetime value helps you to solve tomorrows problems today. It gives you a better understanding of the value of each channel.

Depending on this data you can make better marketing decisions for your company. As you can see above that referral is performing by far best among all other channels. After that Direct and Paid search is doing better. Now you exactly know, where to put all your efforts and money to maximize your revenue and growth.



24. Assisted Conversion - 



Even though we all know that customers visit our websites through various marketing channels and it takes multiple visits to make a purchase, still we analyst and marketers focus on the last channel or campaign that leads to conversions.

Assisted conversion helps you to leave that mindset and optimize for the multi-channel impact on your business.

Assisted conversion help you to find your true secret lovers, who work very hard in the background and never say anything about it. So, it is our job to find those secret lovers.

The higher the value in the last column of this report than 1 means more these channels are helping your business in assisting conversion and sales.

From the above data, you know who are your BFFs? , in this case, It's Display and Paid search.

To learn more about Assisted conversion report just click this link.

Workout Examples -

Let's take a look at 3 different kinds of websites and learn how to find the right KPIs for these businesses. Though it is not going to be perfect because to find the right KPIs you have to talk with someone inside these companies. But it is very important to know the process so that you can do it more easily for your company or clients.

1. Daniel Wellington -



Daniel Wellington is a watch fashion brand. They have an amazing collection of watches. 

To find the right KPI for a business, First, you need to understand What this business is trying to solve for? What are the Macro and Micro goals of this business? 

Macro Goals - obviously selling watches and accessories.

Micro Goals - 






Some of their most important micro goals are Watch Band Selector, email signup, user-generated content for social media, store visits because some people prefer online purchase and some prefer offline purchase.

So, let's try to pick the best KPIs for this business.

A. Acquisition KPIs -

As I don't have any connection with the company and let's suppose even I have, their people aren't willing to help me. So, I can't just sit there. So, I will simply go to Similarweb and try to find out Which channels are most important for this company?Where their most traffic comes from so that I can focus more on those channels.


As you can see that apart from Direct, search( organic and Paid) is a big traffic channel for this brand, followed by Social then the referral. Looking at this data will help me to understand which channels are important for this brand and also help me in deciding which segments I need to use in my analysis.

1. Share of search ( organic & paid) -

As we saw search is a big source of traffic for them, Measuring the share of search help us to understand how much is total inventory available for watches and other related search and how much traffic are they getting for these searches. It helps us to figure out how much additional money and other resources need to put in SEO and PPC to increase their share of traffic from search.

In addition to this, I will also look at the bounce rate of the top keywords and landing pages from search for this website to reduce the leakage of customers as we discussed above.

2. Visits ( Social) -



If you go to their Instagram page , you will see that they are doing exceptionally amazing. Each of their posts has at least 40,000 to 50,000 likes and 100 comments, which is just unbelievable.

Earlier, we also saw that they are displaying their Instagram posts on their website and encouraging people to upload their pics and traffic from social is also one of their major acquisition channels. In Addition to that, I have also seen that they are doing influencer marketing with lost of people to reach and increase their brand awareness on social media. So understanding and measuring the impact of social media channel especially Instagram on their business is super important.

B. Behavior KPIs - 

3. Use and Effectiveness of Watch Selector - 

The goal here is to understand what percentage of customers are using the watch selector and what's its impact on sales.

If you go to their website , you will see that there is too much emphasis on the watch selector both in the upper and lower part of the website. It's a good indication that customers might be finding it difficult to choose which watches to purchase? And if customers can't make a decision which one to pick, then there is no money for them, So it is a very important feature to measure.

To do that we can use event tracking and try to understand its impacts on their sales and conversion. we can see the difference between people who used this feature vs people who didn't use it.
But there is a big issue. As there are also lots of other features on the websites that are also helping customers in decision making So we can't be sure and measure the true impact of watch selector just by event tracking.

A better alternative is using an on exit survey and can ask customers to rank the features which are most effective in making a decision on a scale from highest to lowest.

And the last and best way is simply doing an A/B testing :)

4. Cart and Checkout abandonment rate -

As I said before reducing the cart and checkout abandonment rate is the fastest way to make lots of money. So if you have this kind of structure on your website whether are you in E-commerce or Non-E-commerce, then definitely go for it.

C. Outcome KPIs -

5. Revenue - 

For E-commerce companies, it is common practice to measure revenue and sales to measure success, hence the revenue.If you want, you can also go for Economic value( Solving for all the customers).

They can also segment the data by Geo because they are an international brand, so understanding where their most valuable customers are coming from is very important for business expansion.

6. Assisted conversion -

Measuring this KPI will help them to understand the total true value of social media as they are investing lots of money in it along with other channels. Which in turn help them to decide whether they should invest more money in Social media or in Paid and organic search because these channels are a big source of traffic for this business or maybe on something else. A great way to do resource allocation based on data and less on opinions.


2. The Times of India ( Newspaper website ) -




The Times of India is one of the most read English newspaper in India.

let's dive into this and figure out some most useful KPIs/metrics for this business.

A. Acquisition KPIs -

1. Users ( City ) -

As most newspaper publishes local news for different cities because people wanted to know what is happening in their own backyard, So it is important to understand Where most of their customers are coming from, and what are they most interested in on the website etc. Knowing this will also help them to personalize news for their customers to engage them more.

2. % New sessions -

To understand which channels, sources/mediums are helping in acquiring new customers and growing their business.

B. Behavior KPIs -

3. Visitors Loyalty and Recency -

To understand how much loyal and engaged are their readers? If you visit their website, you will see that there are a way too many ads on their website. The more they interrupt the readers, more frustrated they will feel which directly impact customers loyalty and engagement with the website. Definitely worth measuring.

4. % content consumption -

To see the mismatch between content creation and consumption. In addition to this, I have seen that they have lots of video on the website, so it also important to measure their performance. You can use Video views but a better KPI will be Completed video views. A great way to measure usefulness and relevance of the videos.

C. Outcome KPIs -

5. Revenue From Ads ( Rent + Own ) -

The single biggest macro goal on the website is making money from ads. And they are primarily using two platforms to do that, one through Adsense and one through their own platform. It is very important to know what is the share of the revenue from these two platforms and how they can further improve it.

Doing A/B testing and MVT is a great way to improve the sales of ad space from their own platform. They can use different value propositions, calls to action. In addition to this, I will also try to track, how many customers are calling them for ad space services and what's its impact on the business, which I can easily do with Phone calls tracking systems like dialogtech  or any other services that provide these kinds of services. Also looking at the Page Value of the contents that they are using to convince their customers is a great way to understand what content are most valuable to the customers and helping TOI to convince them to use their advertising platform so that they can create more contents like that or show them more prominently on the website.

6. Account Created -

Important micro goal to measure. They are also using loyalty programs on their website to increase account creation and loyalty of customers, which also indicates that this is an important micro goal for them.


3. Booking.com






Booking.com is mainly a hotel booking website of Netherlands. They also provide Flights reservation and car rentals through their other websites. Obviously, the Macro goal of the website is hotel booking. Some of their important micro Goals are creating an account, Listing of properties and referral marketing.

A. Acquisition KPIs -

1. CTR -

A big chunk of traffic for them is coming from search, so it is important to measure the CTR of there ads and keywords to understand how much relevant is it to the customer's actual search queries.

2. Share of search -

Highly important if you are getting a lot of traffic from search as we discussed before.

B. Behavior KPIs - 

3. % of Successful conflict resolutions -



If you go to their Instagram account , you will see that lots of people are complaining about their services and their customer service team usually suggesting people to " Please go to twitter and DM us the details of your issue".

WTF? DM on twitter?

Why so much torturing the customers? Why aren't they just give their phone number and let the customers call them and get connected instantly?




If you look at their website pic above, you can see that their customer's service help is wayyyyy down the page in the bottom, even when they are aware of the fact that lots of customers are complaining about their services. Why not show your number in big bold letters on the top of the page to let the customers know, where they can contact them if they have any problems with their reservation.

Hence measuring how much customers complain they are receiving every month and what % of those complains are resolved successfully is a very Important KPI to measure. Also, they need to look for the trend of this KPI to understand if they are getting better with their efforts or not over time?

One another very helpful technique to make your recommendation louder is use the Lifetime Value( revenue per user) along with this KPI. Because many people give excuses like "oh, we can't just satisfy each and every customer. Somebody is going to complain about something no matter what we do." Ok, fair point, but that doesn't mean you should keep screwing up again and again. So, when you show the Customers lifetime value next to the number of people who are unhappy with the business, the senior management will exactly know how much money they are losing every month if they do not take it seriously. A good way to persuade your management.

4. Task Completion( Primary purpose ) -

Two reasons for this, first as we already discussed - the poor customer service. Second, making vacation planning is a stressful work. Most of the time customers aren't totally sure about lots of the things so, I assume that the customers will visit their website multiple times to get all the necessary information related to their vacation. On top of that many businesses, who are providing properties for rent to booking.com customers are also their customers. So, both kind of their customers will come and go for various reasons. So, it is very important to understand, why someone is visiting their website? Are they able to complete the task? and if not, then why not?

C. Outcome KPIs -

5. Hotel reservation and Property listing -

Two KPIs but you can see why is it the case? Definitely segmenting and trending this KPI will bring lots of great insights.

6. Economic Value -

As we discussed earlier that they are sending their customers to their other businesses for Flights and car rental and also using the referral marketing, so it is very important to measure how much additional value is generated by all those efforts.


Some more important things that are missing -

1. Booking.com Mobile App -





On their website, there isn't a single place where they mentioned that they have a mobile App?

OMG! but it is true. If I don't know that you have a mobile App, then how the hell am I gonna use it. Big serious crime. If I am on a vacation and I need some information about my hotel stay or car rental, You can't expect me to take my desktop or Laptop computer everywhere, probably I will be using my mobile. Small things but very Important one.

2. Blog's poor placement & content -



Unpacked Travel articles and Seek&Go, which is very important for the customers to get more information in their decision-making process is also placed at the bottom. And the quality of the posts isn't also so good. You can see that all the things that are important from customers perspective are totally getting neglected except for booking hotel :)

Oh, One more thing Social media Follow icons are also missing :)

3. Bad Youtube Strategy -


After 5 years, they only managed to create only 9 videos. Yes, only 9. If you have a small business, I can understand that you don't have enough resources( People, money, time) to create videos but For big businesses like Booking.com it is totally unacceptable to not have a robust youtube strategy. Here is the reason, why they should have - From Home to beauty - How mobile is reshaping the purchase journey.

It's not that everything is bad. Some of the things that I like most about them is the very clever way of using Cookies on their website, totally loved it. Better Remarking display ads and booking hotels on the website which is very important to make money. But they need lots of improvement if they want to stay competitive in the market. They are screwing one of the most important things which are very essential for any business - The Customers. The people who are going to book a hotel, flight or car, the people who actually going to pay them for the services. You don't make a hole in the ship, who is actually going to help you to cross the oceans. Fix the hole first.

Summary - 

How to find the right KPI for your business-

1. First, try to understand what are the business objectives of the company? 

2. Find out what are the Macro and Micro goals of the website? 

For both of the above questions, Please read this post by Avinash for more help - Digital Marketing measurement model. 

3. Once, you know that. Try to pick the right Key Performance Indicators for your business. When in doubt, apply the three layers of so what to test if a metric is deserved to be a KPI or not?

4. Apply segmentation and context for deeper insights.

5. Try to understand about their digital marketing strategies. Look at their social media accounts, do some search on google to see how often their website is showing up in search( both organic and paid) for some of their important branded and non branded category keywords. Look for their remarketing strategies, go and do a competitor analysis . Do the works that nobody asked you to do, you will be proud of yourself and sure more money for you.

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