Key Performance Indicators for Employees

An Internal KPI is one of the most important indicators of the current performance level of an individual/employee in achieving internal goals.

Internal goals are the goals that are directly tied to achieving optimization objectives. 

For example, if you are running an SEO campaign, your internal goal could be to improve the quality of your outreach emails so that you can earn more high-quality backlinks for your website. This, in turn, can increase the organic search traffic on your website.

Internal KPIs are tied to internal goals and are used to measure optimization efforts. 

These KPIs are internally used by team members to measure and optimize their marketing campaigns’ performance. They are not always reported to clients/boss/senior management.

For example, the following KPIs can be used to measure your link building outreach campaigns:

  • Delivery Rate
  • Open Rate
  • Response rate
  • Conversion Rate of Outreach
  • ROI of Outreach

Often marketers make this terrible mistake of reporting internal KPIs to clients/senior management. 

For example ‘Bounce Rate’ is a good Internal KPI for optimizing landing pages. But it is not something which you will report to a CEO. We only report high business bottom-line impacting KPIs to senior management.

Criteria for selecting internal KPI

The metric you choose as an Internal KPI must highly impact the corresponding internal goal. This is possible only when your chosen KPI has the ability to provide recommendation(s) for action which can highly impact your internal goal.

As the value of your internal KPI increases or decreases, there should be a corresponding positive or negative impact on the internal goal and this impact should be significant. 

For example, if one of your internal goals is to improve the quality of your outreach emails, you can then choose ‘response rate’ as an internal KPI.

Individuals who directly work on optimization tasks must be involved in setting up and monitoring internal KPIs.

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How to find internal KPIs?

Before you can set up internal KPIs, you need to know your external KPIs.

Before you can set up external KPIs, you need to know your business KPIs.

Before you can set up business KPIs, you need to know your core business goals and the strategies to achieve those business goals.

The strategic direction needs to come from top management.

If the captain (aka your CEO) is not sure to which port his ship (aka company) should sail then the sailors (aka employees) can’t help him, no matter how good they are as an individual or team.

Similarly,

Before you can set up internal goals, you need to know your external goals.

Before you can set up external goals, you need to know your core business goals.

Before you can set up core business goals, you need to have mission and vision statements + well-defined core values in place.

The strategic direction needs to come from top management.

The core business goals are the results you want to achieve, improve or maintain as an organization in the short term and in the long run. Your core business goals could be something like Increase profitability.

We break down each core business goal into several smaller goals (called ‘External Goals’).  So when you achieve one of the external goals, you can get one step closer to achieving your corresponding core business goal.

External goals are those core business goals that you can achieve within the area of your responsibility and expertise. External goals are department/function specific.

For example, if you work as an SEO, then you can increase profitability (one of the core business objectives) by decreasing customer acquisition cost through ‘Search Engine Optimization’.

Here decreasing customer acquisition cost is your external goal.

We break down each external goal into several smaller goals (called ‘Internal Goals’). So when you achieve one of the internal goals, you can get one step closer to achieving your corresponding external goal.

For example, if you work as an SEO, then you can decrease customer acquisition cost (one of your external goals) by improving the quality of your outreach emails. So that you can earn more high-quality backlinks for your website. This, in turn, can increase the organic search traffic on your website and decrease customer acquisition cost. 

Here improving the quality of your outreach emails is your internal goal.

Alignment between external and internal goals is the key

Each employee/team/department needs to have both external and internal goals and there needs to be an alignment between their goals.

Only then they will be in a position to achieve the core business objectives within the area of their responsibility and expertise and that too in the most efficient manner.

Let us look at the internal and external goals of our SEO guy.

External goalDecrease customer acquisition cost through ‘Search Engine Optimization.

Internal goal Improve the quality of outreach emails

Now once our SEO guy improved the quality of his outreach emails, he can earn more high-quality backlinks for his website. This, in turn, can increase the organic search traffic of his website and which in turn can decrease customer acquisition cost through ‘Search Engine Optimization.

Thus there is a clear alignment between the SEO’s external and internal goals. Our SEO guy knows exactly how his day to day work activities impact the business bottom-line.

Unfortunately, this is not the case with many companies where employees/managers have a hard time understanding how they are adding ‘value’ to the business bottom-line and whether what they are currently doing, is really worth the time and investment.

By aligning/re-aligning your external and internal goals on a daily/weekly basis, you and your team can stay focused and productive and achieve the organizational goals (core business objectives) in the most effective manner.

But all of this can happen only when you share: Core business objectives and external goals across your organization. So this type of sharing and openness is very important.

To learn more about KPIs check out this article: KPI Meaning (What is KPI), Examples & Calculations – Tutorial 

Related Articles

 

Do you know the difference between Web Analytics and Google Analytics?


99.99% of course creators themselves don’t know the difference between Web analytics, Google Analytics (GA) and Google Tag Manager (GTM).

So they are teaching GA and GTM in the name of teaching Web analytics.

They just copy each other. Monkey see, monkey do.

But Web analytics is not about GA, GTM.

It is about analyzing and interpreting data, setting up goals, strategies and KPIs.

It’s about creating strategic roadmap for your business.


Web Analytics is the core skill. Google Analytics is just a tool used to implement ‘Web Analytics’.

You can also implement ‘Web analytics’ via other tools like ‘adobe analytics’, ‘kissmetrics’ etc.

Using Google Analytics without the good understanding of ‘Web analytics’ is like driving around in a car, in a big city without understanding the traffic rules and road signs.

You are either likely to end up somewhere other than your destination or you get involved in an accident.


You learn data analysis and interpretation from Web analytics and not from Google Analytics.

The direction in which your analysis will move, will determine the direction in which your marketing campaigns and eventually your company will move to get the highest possible return on investment.

You get that direction from ‘Web analytics’ and not from ‘Google Analytics’.


You learn to set up KPIs, strategies and measurement framework for your business from ‘Web analytics’ and not from ‘Google Analytics’.

So if you are taking a course only on 'Google Analytics’, you are learning to use one of the tools of ‘Web analytics’. You are not learning the ‘Web analytics’ itself.

Since any person can learn to use Google Analytics in couple of weeks, you do no get any competitive advantage in the marketplace just by knowing GA.

You need to know lot more than GA in order to work in Web analytics and marketing field.


So what I have done, if you are interested, is I have put together a completely free training that will teach you exactly how I have been able to leverage web/digital analytics to generate floods of news sales and customers and how you can literally copy what I have done to get similar results.

Here what You'll Learn On This FREE Web Class!


1) Why digital analytics is the key to online business success

2) The number 1 reason why most marketers are not able to scale their advertising and maximize sales.

3) Why Google and Facebook ads don’t work for most businesses & how to make them work.

4) Why you won’t get any competitive advantage in the marketplace just by knowing Google Analytics.


5) The number 1 reason why conversion optimization is not working for your business.

6) How to advertise on any marketing platform for FREE with an unlimited budget.

7) How to learn and master digital analytics and conversion optimization in record time.

 
 

My best selling books on Digital Analytics and Conversion Optimization

Maths and Stats for Web Analytics and Conversion Optimization
This expert guide will teach you how to leverage the knowledge of maths and statistics in order to accurately interpret data and take actions, which can quickly improve the bottom-line of your online business.

Master the Essentials of Email Marketing Analytics
This book focuses solely on the ‘analytics’ that power your email marketing optimization program and will help you dramatically reduce your cost per acquisition and increase marketing ROI by tracking the performance of the various KPIs and metrics used for email marketing.

Attribution Modelling in Google Analytics and Beyond
Attribution modelling is the process of determining the most effective marketing channels for investment. This book has been written to help you implement attribution modelling. It will teach you how to leverage the knowledge of attribution modelling in order to allocate marketing budget and understand buying behaviour.

Attribution Modelling in Google Ads and Facebook
This book has been written to help you implement attribution modelling in Google Ads (Google AdWords) and Facebook. It will teach you, how to leverage the knowledge of attribution modelling in order to understand the customer purchasing journey and determine the most effective marketing channels for investment.

Himanshu Sharma

Digital Marketing Consultant and Founder of Optimizesmart.com

Himanshu helps business owners and marketing professionals in generating more sales and ROI by fixing their website tracking issues, helping them understand their true customers' purchase journey and helping them determine the most effective marketing channels for investment.

He has over 12 years of experience in digital analytics and digital marketing.

He was nominated for the Digital Analytics Association's Awards for Excellence. The Digital Analytics Association is a world-renowned not-for-profit association that helps organisations overcome the challenges of data acquisition and application.

He is the author of four best-selling books on analytics and conversion optimization:

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