Identifying your KPIs

Posted: Sep 28, 2016 in Business, Data, Marketing, Product Development, Tracking, Web Design
Tags: , , , , ,

Kpi

In order to prioritise effectively you need both the projected value and effort, but these aren’t always easy to come by. Projecting value can be particularly challenging if the data isn’t easily accessible which can have a knock on effect when analysing your KPIs (Key Performance Indicators).

Ensuring that a product / feature have KPIs is beneficial for a few reasons including: Aiding prioritisation, celebrating success, feeding back on software development iterations and to feed into the general product vision and wider business goals.

Your KPIs don’t have to be a financial value (although a good attempt at projecting a monetary value should be made to aid ROI projections) or just one KPI, but they just need to be measurable, an indication of success and for them to be linked in someway to the overall business goals, so how can you identify what your KPIs are:

  • Incremental revenue – benchmarking on existing revenue volumes for the relevant feature in question. What do you anticipate increasing the revenue / ARPU by
  • How many customer queries are you hoping to reduce and how much does it cost per contact
  • Is it solving a common problem / request that high value players have been submitting
  • Will solving the problem increase website stability, reducing downtime for customers
  • Are you expecting to increase customer acquisition numbers / conversion rate
  • Will it increase retention rates – a measure of this is churn rate / drop off as well as LTV
  • Efficiency savings – by completing a piece of work could it increase team output / Velocity whether it be development or a marketing team
  • Feature traffic / usage – if conversions or direct revenue from the feature isn’t relevant then at a minimum having sessions, dwell time and value of customers using the feature can be used as a KPI

    Identifying your KPIs is one thing, but having the data available at your disposal on a self-service basis to cut, analyse and share is naturally fundamental, but once you have identified your KPIs and have access to the data, you can be confident that you’re well equipped to contribute to the Agile piece, but also your helping meet the wider business goals.

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