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How to put together a KPI framework

Updated: Oct 30, 2019

"KPI" stands for key performance indicator and is used as a value to measure performance. These indicators will demonstrate how effective your brand is at achieving its business objectives and can be used at a high-level or with a more in-depth approach.

A KPI framework will be the most important part of your multi-faceted digital strategy and should be used as a tool in driving behaviour and actions that you undertake in the future.

Your KPIs will act as a guide to success for your brand, if properly defined and reviewed. You and your team should use these KPIs to stay on track and help dictate the pace of work.

Following these steps will help you create your KPI framework and begin tracking performance for your brand:

Five simple steps to get started with a KPI framework

1. What is your business goal?

2. Do you have the relevant data and capacity to put together the framework?

3. How can you improve your performance metrics?

4. Who is going to be using your framework? Is it internal, or external?

5. How are they displayed?

Your KPI framework will never be the same as the next persons, as it is personal to your brand goals and your strategy requirements. Having said that, you need to keep the following considerations in mind when creating this framework:

· Are they clearly measurable?

· Do they drive towards the benefits you are trying to deliver for the consumer?

· Do they align with your brand’s objectives?

· Are they realistic?

· Can you regularly measure and report on them?

It is important that you do not mistake certain measures as KPIs – for example, a positive review – as these are not measurable or quantitative. Set up an evaluation framework that you can review at the end of each month; your measures will adjust as you work out what is valuable to your brand and what is not.

Once you have set up KPIs that are valuable, measurable and realistic for you and your brand, you need to be able to explain the relevance of these measures. KPIs can easily become null and void if teams outside of your brand, or even inside your brand, do not understand the importance of measuring and tracking performance.

Building this framework will send you on your way to reaching your business goals, however you must ensure that you are constantly communicating and evaluating with your team for optimum performance.

Want to learn more about social media metrics and how to put together a social media strategy with a KPI framework? Check out our Introduction to Social Media Marketing course to gain confidence in social media measurement.

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