Section 508

June 20th, 2013

Mobile Strategy Handbook Chapter 4: Setting KPIs and making an impact


Mobile is an amazing marketing tool as it can convert advertising dollars directly into sales like no other channel and it can be measured with great accuracy. Therefore every mobile marketing initiative should start by
a) establishing the KPIs of the service
b) specify how to measure them (tools and method)
c) agree how to use analytics to improve the service further

These are all key elements of budgeting for mobile and building your stats and insights in mobile.

In this chapter we will go through these three steps in a bit more detail including examples.

Setting KPIs

Once the objective of the service has been defined it’s important to agree what the key metrics are. The objectives are usually one or multiple of the following:

  • Brand building – Create awareness among new target segments and reminding existing customers about the brand, products and services including sign-up to Facebook pages and other opt-in engagement programs
  • Loyalty – Engage with existing customers to buy more of their services and/or more frequently
  • Driving footfall – Get people in to the store (or other venue) whether it’s online or in a retail store
  • Transactional – Generating purchases from the target audience of the service online or in a store (or a combination thereof)
  • Customer service perception – Improving the customer satisfaction and propensity to buy through enhancing the interaction with the brand

Each objective can then be translated into measurable KPIs:

  • Brand building = Audience reached measured through e.g. Ad displays, Unique site visits, App downloads, Video views and Facebook Likes
  • Loyalty = Engagement through e.g. Sessions per user, Time spent, Return rate, Sharing of content, Liking content, Sign-ups to opt-in programs, time spent with a specific product or service, etc
  • Driving Footfall = Visits to store, e.g. nr of customers that went to the online or physical store/venue
  • Transactional = Customers that purchase a product or service, e.g. voucher redemptions, payment, conversation rate, etc
  • Customer satisfaction = Customer feedback of the service, e.g. appstore ratings/reviews, customer survey results, etc

Finally there are also some non-functional KPIs such as average loading time, service uptime, page / app errors, etc.

Here’s an example of what the KPI targets for a brand can look like. This example is based on an app for a consumer packaged goods brand with a budget of $250,000 in budget for an application across iPhone and Android.

KPI Targets Example

Tools to measure
Once the KPIs have been agreed the next step is to agree how they should be measured. There are usually 2 ways of collecting the data and doing the analytics:

1. Online analytics tool
Google Analytics, Flurry, Kissmetric, Distimo and other online tools are fairly easy to implement in a mobile site or app. Set up the account and project with the online tool and put the tags in the web site code or application. These tools provide an easy to use interface with lots of great data (dependent on how well you tag your site or app). They generally provide limited customisation but the basics are normally good enough.

2. Custom log files and analytic tools
Another alternative is to implement cutom analytics solution of which there are hundreds commercial, shareware and open source. In this case all you need is to define the attributes to log from the site or app whereas a raw log file or database will be created. If you define too many then this may create major overheads for the analysis so make sure you define the attributes you really need. The advantage of these may be that they give a bit more control in terms of customising reports, managing the data and creating custom reports and that they provide better data privacy/security.

Some organisations have existing business intelligence tools such as SAS, Qlikview, etc and want to aggregate all information in one place. The advantage of this approach is that you could potentially merge this with other data such as purchases, redemption, etc from other systems.

Using analytics/data to further improve the service and ROI
Unfortunately most organisations only use a small fraction of the available data after the service has been launched. This is usually due to a combination of lack of clear KPIs and post launch plans. The best performing mobile services plan for and dedicate time, budget and resources for monitoring performance vs KPIs, ongoing analysis, improvements, minor tweaks and major updates based on customer feedback.

So how can you use the data to improve the service? Here are just a few examples:

  • Analyse which parts of an app/site gets the most visits and optimise the service accordingly
  • Understand the drop-off each step in a redemption or purchase process
  • Understand the demographics of your audience and tweak the targeting accordingly or analyse further if the target audience is right but different than what you expected
  • Use the data to personalise and increase targeting of your service (e.g. products offered, rates, packages and more.
  • Read the appstore ratings and reviews to understand what customers like and don’t like and improve the service

So in conclusion, agree the objectives and KPIs for your mobile service, find and implement the right tools to measure your KPIs and plan to use the data for ongoing improvements and performance benchmarking!

On request we can provide a more complete analysis of the online analytics tools available.

image courtesy: Ugur Akdemir

Tags: Mobile Business Intelligence

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