When defining eCommerce organization objectives, the main thing to build up is a system for characterizing objectives and related exercises to help achieve those objectives. There are different systems used for helping reach these goals and one of the rising solutions is the OKR (Objectives and Key Results) system. It allows for an in-depth approach that can help keep teams in sync and on the common track while working on separate projects. Well-known and successful business leader from Costa Rica Jose Duarte shares some of his tips on how to set and main eCommerce goals in keeping with the OKR framework.
The first step is to carefully choose the objectives. These need to be qualitative, actionable and time-bound, but must also always be ambitious. In addition, eCommerce marketing objectives are typically classified by one of three goals – increase revenue, increase customer loyalty or decrease costs. Adds Duarte, “I like all objectives to use a similar timeframe for clearness. I normally suggest keeping all objectives established on a similar timeframe, regardless of which goal needs to be achieved.”
Key Performance Indicators (KPI) are a vital part of all OKRs. They typically are designed to be very aggressive, but with the understanding that achieving 70% of the goal is standard. The KPIs are meant to be a reasonable gauge of what is expected to be achieved, and are set based on a few considerations. These include determining what will happen if the KPI isn’t met, if a similar result has been sought (or achieved) previously and the drive behind the KPI.
Since you have your Objectives and key outcomes arranged out, the time has come to characterize what precisely you will do so as to meet each key outcome. These activities are referred to as initiatives. Explains Duarte, “You’ll need a high-level list of projects and initiatives, along with the OKRs, but don’t lose sight of the other initiatives you and your team are leading.” Some of the initiatives include setting up and launching “abandoned cart” and win back systems or implementing surveys or polls on the site for returning customers. In general, three tests are created for returning customers.
With the objectives and initiatives in place, prepare an adequate location to store and share the data so the team and project stakeholders can stay informed. There are several ready-made platforms available, most of which easily incorporate KPIs and/or OKRs to help provide seamless oversight.
There are several things to be aware of when creating OKRs. According to Duarte, “Don’t choose more than five goals for a yearly cycle and make sure you include people from all of the company’s levels to help with the process. This will bring much-needed alignment that can help ensure success.” In addition, the key results need to be realistic and should be weighed against reality.
Defining eCommerce marketing objectives is an absolute necessity for companies who are determined to have long-term growth and success. Doing as such will enhance team alignment, lead to the creation of buy-in power across the entire organization and keep everyone’s mind on the target. Utilizing a structure like OKRs can enable you to concentrate on the objectives, KPIs and activities required.