Are You Measuring Your Success?

Monday, July 24
I've noticed that a lot of new, struggling marketers out there are having difficulty understanding key concepts around metrics and key performance indicators. Also known as KPI these measurements help reflect the strategic performance of a company. In large businesses this would be classified under the term 'business intelligence'. What does that mean?

If I asked you to sit back and tell me exactly how you would know if your business is doing well - how would you respond? Would you simply say "I'm earning some extra cash?" That might be fine. However, do you know some of the basic metrics of your business? Do you understand how many new customers you are collecting, the profitability of your AdWords ads, the percentage conversion rate of your affiliate partners? These are all KPIs for your business.

Now, you certainly do not have to get into this amount of detail to begin with. But you might want to begin measuring your internet business with simple statistics such as your AdSense ad channels, AdWords conversions, ebook sales through Clickbank, top referring sites, monthly profitability, etc. It's really not that difficult to do and can give you a good sense of what your business is doing without relying on your gut feelings. Are you able to simply say home much you have earned this month and how it compares to your previous months? How about how much you have spent (this is typically the naturally ignored metric)?

Here are some of the potential benefits of using KPIs:
Productivity, Profitability, Quality, Cycle Time, Growth, Innovation, etc.

Take a look at Eric Peterson's Blog called Web Analytics Demystified when you have some extra time. This is a great place to learn more about internet marketing KPIs. If you start simple and start soon - your online business will benefit from it.


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