Question

Please Provide a two full detailed paragraphs discussing what KPI’s are and how are they useful in calculating your digital marketing inputs against the company’s (in this case, the company is yahoo.com) profits contribution?

With consumers constantly attached to their wireless connections (smart devices) how can a company maintain a consistent competitive advantage?

Answer 1

Part 1:

Key Performance Indicator (KPI):

In order to measure how effectively a company is achieving its predetermined business objectives, KPI’s are used. It is a measurable value that helps in identifying how successfully the organization is achieving its targets. KPI’s evaluate success at multiple levels. They usually are determined at two levels i.e. high level KPI (emphasis on overall performance of organization) and low level KPI (concentrates on processes and departments).

In order to calculate Yahoo’s digital marketing inputs against its profits contribution KPI can be used. Social engagement activities don’t count unless they are linked with the ultimate business objective to generate revenue and profits. To measure Yahoo’s digital marketing inputs the KPI must be Leading Indicators. For example after this digital marketing practice was carried, have the number of users that spend time on yahoo for more than 3 minutes have increased in comparison to users before this digital marketing was done. Other leading indicators in the metric that align with the objective of evaluating profits contribution are site visits, engagement, content viewers and impressions.

Part 2:

A company can maintain a consistent competitive advantage in this digital age were consumers are constantly attached to their wireless connections (smart devices) in following manner:

• By stepping in the world of digitalization. This will open exponentially increasing opportunities for the firm.
• By investing in digital marketing a firm can maintain its competitive edge over competitors.
• By providing services that are desired by consumers on their fingertips.
• By updating the systems with rapidly changing technological world.