SMART Goals and KPI’s!

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Hello my lovelies!

We are back at it again, coming at you live from my Integrated Marketing Communications class!

This week, we are learning all about the incredibly important topic of setting SMART goals, what steps a company can take to achieve them, and how their success can be measured.

First, what the heck is a SMART goal? Well, SMART goals are the first step in crafting any effective marketing campaign. SMART is an acronym referring to specific, measurable, attainable, relevant, and time-sensitive. Setting strategic goals that meet these criteria, helps a company formulate strategies and tactics that align with this overarching goal. It is the framework that keeps a company focused and on track to reach their target (Charliesaidthat, 2016).

So what is the difference between goals, strategies, and tactics? According to digital strategist, Charlie Southwell, “strategy is a strong overarching vision, intended to fulfill your predetermined goals and objectives. Strategy is the plan that ensures all your day to day activities (tactics) contribute to your monthly, quarterly and annual business goals” (Charliesaidthat, 2016, para 4).

Where tactics are the daily activities a company undertakes to contribute to their strategy, and ultimately, their goals. Tactics can be sending out weekly emails to subscribers, writing blog posts, posting on social media accounts, connecting with influencers, revamping web pages, etc. (Charliesaidthat, 2016).

So, we see that a goal is a very broad objective, usually performance-based, that contributes to a company’s success. Strategies are a broad plan of how the company intends to reach their goals, and tactics are the daily steps taken to fulfill their strategy. So, we see that setting SMART goals is so important because these goals direct the rest of the company’s marketing activities.

When setting these SMART goals, there are a few questions that a company should keep in mind. These include “Can the detail in the information sufficiently pinpoint problems or opportunities? Can a quantitative or qualitative attribute be applied to create a metric? Can the information be used to improve performance? Can the information be applied to the specific problem faced by the manager? Can the information be viewed through time to identify trends?” (Charliesaidthat, 2016, para 8).

Let’s look at some examples of how goals, strategies, and tactics really come together. Let’s say Robin’s Tweezer Co. wants to increase their sales. They may begin by setting a SMART goal of “Increase sales revenue by 20% by this time next year.” This is specific, measurable, attainable, relevant, and time-sensitive.

Next, Robin’s Tweezer Co. would craft a strategy to help achieve this goal. For example, “we will increase our sales revenue by encouraging repeat purchases from current customers and increasing traffic to our website.”

The tactics are the steps that Robin’s Tweezer Co. will take to implement their new strategies. For example, to encourage repeat purchases, they may choose to email their current customers a coupon code and include a coupon voucher in any purchased order through the month of August. To increase web traffic, Robin’s Tweezer Co. will embed their company’s URL in all their social media bios, engage with their target audience through Instagram, and include their website in a Facebook ad.

We see how the company’s goal influenced the strategies, which influenced the tactics.

Finally, a company needs to monitor the performance of their tactics and strategies to ensure they are on track to reach their goals. This can be done by applying and monitoring relevant key performance indicators or KPI’s.

For example, to monitor website traffic, Robin’s Tweezer Co. could utilize total visit metrics. This measures how many users have visited a company’s website. Monitoring this metric would give the company a clear understanding of any increases in webpage views. Further, RTC could use a web traffic source metric to get more detailed information as to what channels and tactics are most effective in driving the increased web traffic (Klipfolio, n.d.).

Further, to monitor how effective their direct email tactics are, RTC could implement and track email marketing engagement score metrics and coupon conversion metrics. These metrics would tell Robin’s Tweezer Co. how many of their current customers were engaging with their new email marketing tactic, and how often the unique coupon was redeemed (Klipfolio, n.d.).

By tracking the performance of the implemented tactics and strategies (with KPI’s), a company can see how well they are on track to hit their goal (or not), and make needed adjustments.

What is your one must have marketing KPI? Why do you find it is so effective?

Until the next info nugget,

Have a magical day!

 

 

 

 

 

 

 

Resources

Charliesaidthat. (2016). Marketing Strategy vs. Tactics – Explaining the Difference. Retrieved from http://charliesaidthat.com/digital/digital/difference-between-marketing-strategy-vs-tactics-an-example/

Klipfolio. (n.d.). Marketing Metrics and KPIs. Retrieved from https://www.klipfolio.com/resources/kpi-examples/marketing

Image received from http://habitica.wikia.com/wiki/SMART_Goal_Setting

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