Do you already use OKRs and KPIs in your strategy? This combination allows us to focus on the most important results and measure them, thus making the best decisions. In short, it is a way to simplify this process in the midst of the whirlwind of data that exists.
Rock Content Editor
Jun 8, 21 | 10 min read
OKR vs KPI
Reading time: 8 minutes
It is very important to have a clear, defined and well-documented marketing strategy , establishing the next objectives to follow through OKRs . On the other hand, some people confuse these results with KPIs , even changing one for another. This confusion of concepts can lead to an incorrect direction of your actions, which causes you to waste time and money.
In this article we clarify these doubts by explaining:
What does OKR mean?
What is a KPI?
OKR vs KPI: What’s the difference?
Why are both important?
How to use OKRs and KPIs in your strategy?
By the end of this reading, you’ll know how to
choose and apply goals and metrics to improve your results, how to attract your buyer persona , increase sales , scale your business, and much more!
What does OKR mean?
OKR stands for Objective and Key Results , a methodology used by companies to define expected results. In practice, when you set an OKR, you create a set of desired objectives, i.e. a qualitative description of the group of results to be achieved.
With this methodology, companies are able to liechtenstein email list 150000 contact leads focus on the areas they consider most important for improvement. That is, instead of creating dozens of objectives and getting lost among them, one objective is achieved at a time, focusing all the team’s efforts on what is key for the company to advance to the next level.
Consider that the main objective is to present a subjective desire, while the key results show what the success of this action would be. For example, let’s imagine that a SaaS company would like its customers to be brand ambassadors.
In this case, “getting the customer to fall in love with the software” is the goal. But what can be done to make that happen? How can this result be achieved?
This is where key results come into play .
A goal can have a set of actions that together achieve the expected result. In our example, it could be:
Reduce turnover by 5%;
Perform three monthly software updates;
Achieve NPS in the zone of excellence.
What is a KPI?
KPI is short for Key Performance Indicator, a performance metric to show whether organizational objectives are being achieved.
Have you noticed that key results use the SMART methodology ? It turns out that these goals need to be real and achievable, and the KPI comes into that story to measure them.
Moreover, it becomes even more efficient when implemented in marketing automation . Take a look at some examples of KPIs on this slide:
okr kpi
Source: Weekdone
There is no point in copying KPIs from other companies, let alone defining them without OKRs. Otherwise, you risk analyzing metrics that are not relevant to what the company wants to achieve. Below are some examples of KPIs used in marketing:
average ticket
traffic source
conversion rate
lead acquisition
delivery time, and many others.
OKR vs KPI: What’s the difference?
The idea of OKRs is to help relate desire to a strategy
allowing you to continuously improve until you reach the expected result. That’s why OKRs work like a GPS that indicates the best path to follow.
On the other hand, KPIs are a kind of graphical 8 marketing trends for 2021 display of the conditions for following the planned course, as if it were the car dashboard that accompanies the GPS, showing mileage, amount of fuel, among other details, for example.
Have you noticed that, although they are different, OKRs and KPIs are related ? That’s why there is no one better than the other, as both depend on what your team wants to achieve and what needs to be measured. When used together, it is possible to define more precise goals, while fine-tuning that “radar”.
Why are both important?
As we have seen, by having reliable and accurate measurements of the actions being implemented, it is easier to evaluate the results and understand what to do about them. Therefore, it is interesting for you to understand why it is worth combining OKRs and KPIs in your marketing strategy.
OKRs allow you to focus on essential results
Considering that we have a large amount of data generated in Digital Marketing strategies, when you do not correctly define the key results of what you want to achieve, you run betting email list a serious risk of losing focus and analyzing metrics that are not directed to what the company wants.