Make your organization (more) data driven? Beware of the pitfalls of data overload! More and more data is available and it is tempting to take all this information in to account when making decisions. However, this can be very unproductive and even paralyzing.
That’s why we always insist on starting with a KPI workshop. During this exercise, business objectives are translated into metrics. This will help you to set priorities and to focus on things that really matter.
Why is a KPI workshop useful for your business?
- Helps you to get more value out of your online data.
- Allows you to better organize and structure data.
- Explains to all parties involved why certain things are measured, in an understandable way.
- Helps you to maintain focus and supports the further development of your analytics implementation.
Step 1 – Business objectives: What is my goal?
What do you want to accomplish with your online presence? What specific needs are you trying to fulfill? What is the ideal user behavior? During the first stage of this workshop we define “what” rather than “how”. Together with all the stakeholders we evaluate and define all business objectives (BO). A lot of attention goes out to achievability, relevance and simplicity of every objective.
Step 2 – Critical success factors: what should I do/know to accomplish these objectives ?
Once the business objectives are defined, we determine how we can accomplish these and what information/tools we need to do so. This is expressed in Human Questions: understandable questions and statements that make it clear to everyone where the organization wants to go.
Step 3 – Key Performance indicators (KPI)
KPIs are those specific metrics that help you answer the Human Questions. Determining these KPI’s is done by following the SMART-principle:
- Specific – Is it clear what every KPI measures exactly?
- Measurable – Is every KPI measurable? Can it be used for comparison?
- Actionable – Can we take specific actions, depending on the outcome of each KPI?
- Relevant – Is every KPI relevant to each success factor? Does this result in insights?
- Timely – Can the KPI be expressed and compared over time?
Step 4 – Measurement Framework
After the KPI workshop, the Humix consultants start working with the provided input. Based on the KPI’s and the Human Questions we define segments, targets, benchmarks and supporting dimensions. Segments and supporting dimensions provide context to the KPI’s. Targets and benchmarks simplify interpretation and evaluation: are we really doing well or not?
All this information is compiled in a Measurement Framework. This is a document that can be used to guide the implementation and optimization of your web analytics.