Conquering Your Data: Why KPI Reporting is No Small Feat
It is one thing to recognize that actionable KPI reporting is an essential element of business success, but it can be quite another thing to wade through the oceans of data that pour into today’s businesses, and hone in on the specific KPIs that can best guide decision making to increase marketing success. After all, the data flowing in is constantly evolving.
Too often, it means that critical information that could help shape actions is left to die on the dashboard or even at the data source. That means key decisions are made on the basis of guesswork.
Too Much of a Good Thing Can Be Overwhelming
That’s certainly the case with marketing data, where both channels and technologies continue to proliferate and evolve at a dizzying rate. To discover the actionable insights embedded in all of that information, marketers need to have both a worldview and an ecosystem that allows them to aggregate, integrate, analyze, and distill data into a single source of truth that will enable them to focus their KPI reports around metrics that mesh with their fundamental business goals.
If you start by attaching a meaningful number to it — e.g, customer acquisition cost, customer retention rate, churn rate, customer lifetime value, etc. — you can incorporate that into your KPI reporting. However, that doesn’t mean you should. The most important and revealing KPIs tend to vary significantly business to business.
Aligning Company Goals and KPI Reporting
It’s possible, of course, to just pick your KPIs off the shelf, using essentially generic measurements that assume all businesses are the same. But, from our experience, that’s a big mistake. In fact, it’s one of the primary ways that important, business-critical insights get left on the table.
The wiser course, by far, is to recognize that every business is unique and has specific needs when it comes to KPI reporting. By respecting that, you can build relevant KPIs based on the most significant objectives of an organization. Doing that requires a company to take a long, hard look at its respective goals and processes in order to build out the appropriate KPIs.
That process begins with asking questions, such as:
- How business goals are being quantified;
- Whether KPI reporting aligns with the organization’s goals;
- What additional data is needed to round out the picture; and,
- Whether the KPIs identified meet the needs of the entire organization and individual stakeholders.
That last question looms large for most companies because one of the primary ways data can defeat itself is when it gets siloed — an all too common occurrence. The result is that the various stakeholders each have pieces of the puzzle, but none of them have the big picture
Unified KPI Reporting is Difficult, but it’s Within Reach
Siloed data is one hurdle that has to be cleared in order to unify your KPI reports, but it’s not the only one. The task is also made more complex by the nature of marketing data itself — remember, it is constantly changing.
Datorama’s newest webinar, Conquering Your Data: Learn the Top Three Keys to Transforming Your Marketing, tackles such issues head on by spelling out the steps necessary for turning data into actions that will yield an impact.
See the full webinar, below!
In addition to offering guidance on how to select KPIs and how to unify them, the webinar also demonstrates the ways in which fostering a single source of truth destroys silos and promotes collaboration across departments, further enriching the company culture. Importantly, it also explores the critical role that stringent documentation plays in ensuring that data is reliable and actionable.
Why Conquering Data Pays Big Dividends
As fascinating as data can be, and as many ways as there are to slice and dice it for business value, the final analysis of KPIs is all about maximizing profitability and ROI. To do that it’s essential to create KPIs that closely track a businesses’ most important objectives, and to turn those KPIs into both immediate actions and a collaborative work environment.