Marketer's KPI: how to calculate? We give an example for an online store marketer.
Step 1. Selecting the key performance indicators of a marketer
It is best if there are 3 to 5 such indicators:
number of buyers attracted to the site;
number of repeat orders from existing customers;
the number of positive boost your business with our doctor database reviews and recommendations from satisfied customers (on the website and in social networks).
Customer Reviews
Source: unsplash.com
Step 2. Determine the weight of each indicator
The sum should be one. The most significant (priority) indicator should have the greatest weight.
In our case:
new clients - 0.5;
repeat purchases - 0.25;
Reviews - 0.25.
Step 3. Analysis of statistics for the last 6 months for selected indicators and drawing up a plan:
KRI of a marketer_plan
Step 4. Calculate each KPI:
KRI of a marketer_calculation
The goal is the planned result that management expects from the marketer, the fact is the result that he actually achieved.
From the table it is clear that the plan is not 100% fulfilled, but the overall figure is 113.7%, which is a very good result.
Step 5. Calculation of remuneration for labor.
The marketer's salary is $800, of which $560 is a fixed part, and $240 is a bonus paid if the index is 1 (i.e. 100%). Since the indicator of 113.7% indicates overfulfillment of the plan, the marketer is entitled to an additional bonus. And his payment will be: 560 + 240 + 32.88 = $832.88.
If the key performance indicator index is less than 99%, then bonuses must be cut proportionally.
Compiling such a table allows you to see what turned out to be a problem for the specialist. Perhaps he chose the wrong strategy for increasing the loyalty of the target audience. Or the goal was not achieved because the plan was inadequate. In any case, the problem area needs to be taken under control. If there are no improvements, the KPI requirements will need to be revised.
Depending on the stated goals, the calculation format may change. It is possible to include new values in it.
For example, adding an indicator of the number of achieved/unachieved goals, connecting a system of penalties for poor results in priority plan items.
For example, if the plan is fulfilled by less than 70%, the marketer may not be paid bonuses.