Matt Lacey, Head of Optimisation at PRWD, a conversion optimisation specialist firm, gave a presentation at #SASCon about selecting key performance indicators (KPIs) that matter. He discussed how a small decrease in conversion rate can sometimes be good if it increases average order value or margins. He also covered measuring success, being wary of relying only on micro-conversions, setting SMART and strategic KPIs, and tips for setting KPIs like making sure your vision and strategy are clear.
2. @matt_lacey12 #SASCon
Team of leading conversion optimisation
specialists
Head office in Manchester, with clients
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Work with brands to analyse, research, test
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3. @matt_lacey12 #SASCon
CAN A ( S M A L L )
CONVERSION
RATE
DECREASE BE
GOOD?
When Average Order Value increases
When there is a considerable saving for the
business
When the product mix changes significantly
to favour higher margin products
When return rate improves
Change in LTV/Purchase rate
17. @matt_lacey12 #SASCon
WHY SETTING
KPIs IS HARD
You don’t always have a clearly defined and
agreed organisational or departmental
strategy.
It’s possible that you could select and
achieve some KPIs without achieving the
full desired outcome.
Other positive achievements might be
overlooked.
Tough targets without careful consultation
can put pressure on staff morale
It’s a challenge to be selective and not get
overwhelmed by too many KPIs
Data collection and reporting can be
challenging and/or costly
18. @matt_lacey12 #SASCon
BENEFITS OF
SETTING KPIs
Gain a clear view of performance and
support accountability
Celebrate & reward success
Identify issues and take appropriate
corrective action
Carefully selected KPIs can make goals or
metrics more tangible or more accessible.
Focus your organisation tactics and
activities that support your key strategic
goals.
19. @matt_lacey12 #SASCon
THREE FINALS
TIPS FOR
SETTING KPIs
1. Make sure that you are clear on
your Vision & Strategy (and be
flexible on tactics).
3. Set a small number of S.M.A.R.T.,
Visionary/Strategic KPIs and
communicate them widely.
2. Think about the values and
behaviours that you want to
encourage.