Understanding customer behavior is the key to unlocking success in marketing. By analyzing and interpreting the actions, preferences, and motivations of customers, businesses can tailor their marketing strategies to effectively engage and convert their target audience.
What is Customer Behavior?
Customer behavior refers to the actions, attitudes, and decision-making processes exhibited by individuals when purchasing products or services. By understanding consumer behavior, marketers can gain valuable insights into what drives their customers' purchases, allowing them to design more targeted and effective marketing campaigns.
Why We Must Analyze It
Customer behavior analysis is essential for various reasons. Firstly, it enables businesses to identify and understand customer needs and preferences, thus guiding the development of products or services that meet those demands. This understanding of customer behavior can help companies tailor their offerings to better suit their target audience, leading to increased customer satisfaction and loyalty. Second, analyzing customer behavior helps companies identify potential market segments. By studying the purchasing patterns and preferences of different customer groups, businesses can identify segments that may have been overlooked and develop strategies to target them effectively. This segmentation allows companies to allocate their resources more efficiently, focusing on the most profitable market segments.
Third, customer behavior analysis helps organizations identify trends in the market. By analyzing customer data and tracking their behavior over time, businesses can identify emerging trends and adapt their marketing strategies accordingly. Fourth, customer behavior analysis provides companies with a competitive edge over their rivals. By understanding what influences their customers' purchasing decisions, businesses can develop unique selling propositions and differentiate themselves from competitors. This knowledge allows companies to position their products or services in a way that resonates with their target audience, leading to increased brand awareness and market share.
Techniques for Effective Customer Behavior Analysis
There are several techniques that businesses can employ to effectively analyze customer behavior.
One such method is utilizing data analytics tools. These tools enable marketers to collect and analyze vast amounts of data, ranging from website metrics to social media interactions. By uncovering patterns and trends within this data, marketers can make data-driven decisions to optimize their marketing strategies. For example, by analyzing website metrics, businesses can identify which pages are most frequently visited by customers, allowing them to focus their efforts on optimizing those specific pages to enhance the overall customer experience.
Another effective technique is conducting surveys and interviews. By directly engaging with customers, businesses can gather qualitative insights into their preferences, motivations, and behaviors. Surveys and interviews allow for a deeper understanding of customer sentiment and provide valuable feedback that can be used to improve products, services, and overall customer satisfaction. For instance, by conducting surveys, companies can identify areas where customers may be experiencing difficulties or frustrations, enabling them to make necessary improvements and enhance the overall customer experience.
Observing social media interactions can also be a valuable technique for customer behavior analysis. Social media platforms have become a hub for customer engagement and conversations. By monitoring and analyzing conversations and interactions on social media platforms, organizations can gain insights into how their target audience thinks and behaves. This information can be used to craft more engaging and relevant content that resonates with customers. For example, by analyzing social media interactions, businesses can identify trending topics or discussions that are relevant to their industry or target audience, allowing them to create content that sparks meaningful conversations and increases customer engagement.
Additionally, businesses can also leverage customer feedback platforms and online reviews to analyze customer behavior. These platforms provide a wealth of information about customer experiences, opinions, and preferences. By analyzing customer feedback and reviews, businesses can identify common pain points, areas of improvement, and customer satisfaction levels. This information can be used to refine marketing strategies, enhance product offerings, and improve overall customer satisfaction.
Case Studies: Success Stories of Customer Behavior Analysis
Many big brands have successfully leveraged customer behavior analysis to achieve remarkable results.
Amazon and Netflix
Amazon, the world's largest online retailer, has revolutionized personalized recommendations by analyzing customer browsing and purchase history. This helps them provide tailored product suggestions that dramatically increase customer engagement and sales. Amazon's customer behavior analysis goes beyond simply tracking what customers buy. They analyze the entire customer journey, from the moment a user lands on their website to the point of purchase. By understanding the browsing behavior and preferences of their customers, Amazon is able to provide a seamless and personalized shopping experience. If a customer frequently searches for and purchases books on gardening, Amazon's algorithm will prioritize showing gardening-related products and recommendations, making the customer feel understood and valued.
Another success story in customer behavior analysis is Netflix. The streaming giant uses sophisticated algorithms to analyze the viewing patterns and preferences of their users. This enables them to recommend movies and TV shows that are highly relevant to each individual's taste. By analyzing data such as viewing history, ratings, and even the time spent on certain content, Netflix is able to create a highly personalized user experience. This not only increases customer satisfaction but also drives user engagement and retention.
Small Businesses
However, customer behavior analysis is not limited to large corporations. Small businesses can also benefit from understanding and analyzing customer behavior. By focusing on specific niches and targeting the right audience, small businesses can strengthen their marketing efforts and achieve significant growth.
One example of a small business that successfully utilized customer behavior analysis is a local bakery. By analyzing customer behavior, such as purchase history and preferences, the bakery was able to identify the most popular products and create targeted marketing campaigns. For instance, they discovered that customers who purchased bread were more likely to also buy pastries. Armed with this knowledge, the bakery started offering special promotions where customers who bought bread would receive a discount on pastries. This not only increased sales but also improved customer satisfaction as they felt valued and understood.
Hospitality Industry
Customer behavior analysis can also be applied in the hospitality industry. For instance, a boutique hotel analyzed guest behavior and preferences to create personalized experiences. By tracking guest preferences, such as room temperature, pillow preferences, and preferred amenities, the hotel was able to provide a customized stay for each guest. This attention to detail not only enhanced the guest experience but also led to positive reviews and repeat bookings.
Challenges in Implementing Customer Behavior Analysis
While customer behavior analysis offers numerous benefits, implementing it can present challenges.
One major challenge is data privacy issues. With the increasing focus on data protection and privacy regulations, businesses must ensure they collect and analyze customer data in a transparent and ethical manner. Building trust with customers by safeguarding their data is vital to the success of customer behavior analysis initiatives. Ensuring data privacy involves more than just complying with regulations. It requires businesses to establish robust security measures to protect customer data from unauthorized access. This includes implementing encryption techniques, secure storage systems, and access controls. Additionally, businesses must educate their employees about data privacy best practices and regularly conduct audits to identify and address any potential vulnerabilities.
Another challenge is overcoming analysis paralysis. With an abundance of data available, businesses may face difficulties in organizing and analyzing it effectively. It is essential to have a clear strategy in place and use the right tools and technologies to extract actionable insights from the data. One approach to tackling analysis paralysis is to leverage advanced analytics techniques, such as machine learning and artificial intelligence. These technologies can help businesses sift through large volumes of data and identify patterns and trends that may not be apparent to human analysts. By automating the analysis process, businesses can save time and resources while gaining deeper insights into customer behavior.
Furthermore, organizations should consider implementing data visualization tools to present the analyzed data in a more digestible format. Visualizations, such as charts, graphs, and heatmaps, can simplify complex data sets and make it easier for decision-makers to understand and act upon the insights derived from customer behavior analysis.
Additionally, companies must ensure that the data they collect is accurate and reliable. Inaccurate or incomplete data can lead to flawed analysis and misguided decision-making. Implementing data validation processes and regularly monitoring data quality is crucial to maintaining the integrity of customer behavior analysis initiatives.
Lastly, businesses must be prepared to adapt and evolve their customer behavior analysis strategies over time. Customer preferences and behaviors are constantly changing, and organizations need to stay ahead of these shifts to remain competitive.
Future Trends in Customer Behavior Analysis
The future of customer behavior analysis lies in the advancements of Artificial Intelligence (AI) and Machine Learning (ML). These technologies can handle complex data sets efficiently and identify patterns and correlations that humans might miss. ML algorithms can predict customer behavior with high accuracy, enabling businesses to tailor their marketing efforts proactively.
One area where AI and ML are making significant contributions is
sentiment analysis. By analyzing customer feedback, social media posts, and online reviews, AI algorithms can determine the sentiment behind the text and understand how customers feel about a product or service. This information can help businesses identify areas for improvement and make data-driven decisions to enhance customer satisfaction. Another emerging trend is predictive analytics. This form of analysis uses historical data and statistical models to forecast future customer behavior. By analyzing past purchase patterns, browsing history, and demographic information, businesses can anticipate customer needs, personalize messaging, and optimize marketing strategies to drive results.
Also, the rise of big data has revolutionized customer behavior analysis. With the increasing availability of data from various sources such as social media, website analytics, and customer surveys, businesses have access to a wealth of information about their customers. By harnessing this data and applying advanced analytics techniques, companies can gain valuable insights into customer preferences, behavior patterns, and trends.
Moreover, the integration of customer behavior analysis with customer relationship management (CRM) systems is now more prevalent. By combining data from various touchpoints, like website interactions, email campaigns, and customer support interactions, businesses can create a holistic view of each customer. This comprehensive understanding allows them to deliver personalized experiences, build stronger relationships, and increase customer loyalty.
In conclusion, unlocking success with customer behavior analysis is essential in modern marketing. By understanding the importance of customer behavior, employing effective analysis techniques, learning from success stories, addressing implementation challenges, and embracing future trends, businesses can stay ahead of the competition and create extraordinary results. The future holds immense potential for customer behavior analysis, with AI, ML, predictive analytics, big data, and CRM integration paving the way for innovative strategies and enhanced customer experiences.
Unlock your marketing success with insightful customer behavior analysis using Wrike's advanced tracking features. Start a free trial and tailor your strategies to your customers' wants and needs.
Note: This article was created with the assistance of an AI engine. It has been reviewed and revised by our team of experts to ensure accuracy and quality.
Wrike Team
Occasionally we write blog posts where multiple people contribute. Since our idea of having a gladiator arena where contributors would fight to the death to win total authorship wasn’t approved by HR, this was the compromise.
SMART Goal Examples for Work: A Practical Guide for Marketers
In the fast-paced world of marketing, setting goals is crucial for success. However, not all goals are created equal. To truly achieve meaningful progress, marketers need to embrace a framework that ensures their objectives are Specific, Measurable, Achievable, Relevant, and Time-bound - also known as SMART goals.
Understanding the Concept of SMART Goals
SMART goals provide a structured approach to goal setting that increases the likelihood of achieving the desired outcome. By following this framework, marketers can optimize their efforts and maximize their chances of success.
What are SMART Goals?
SMART goals are a set of criteria that help marketers create goals that are clear and actionable. Each letter represents a different aspect of goal setting:
Specific: Goals should be well-defined and specific.
Measurable: Goals should be quantifiable.
Achievable: Goals should be realistic and attainable.
Relevant: Goals should align with business objectives and have relevance to the overall marketing strategy.
Time-bound: Goals should have a specific timeframe for completion.
Why are SMART Goals Important in Marketing?
SMART goals are particularly important in the marketing field because they bring focus and clarity to the often complex and dynamic nature of the industry. Marketing is a multifaceted discipline that requires strategic thinking, creativity, and adaptability. Without clear goals, marketers may find themselves overwhelmed and unsure of where to direct their efforts. SMART goals provide a roadmap for success, allowing marketers to break down their objectives into actionable steps and measure their progress along the way.
Moreover, SMART goals help marketers stay accountable and evaluate their performance objectively. By setting specific metrics and deadlines, marketers can assess their achievements and identify areas for improvement. This data-driven approach enables continuous learning and optimization, leading to better outcomes and a more effective marketing strategy.
Breaking Down the SMART Goal Framework
Specific goals in marketing are crucial for success. By clearly defining the desired outcome, marketers can create a roadmap that guides their actions. Instead of stating an objective as "Increase website traffic," a specific goal might be "Increase website traffic by 20% within three months through search engine optimization (SEO) strategies and content marketing efforts."
Measurable goals in marketing are essential for tracking progress and determining success. By establishing metrics, marketers can track their performance and make data-driven decisions. A measurable goal could be "Increase email open rate by 10% by implementing personalized subject lines and A/B testing."
Achievable goals in marketing ensure that marketers set themselves up for success rather than disappointment. An achievable goal could be "Increase social media engagement by 50% within six months by leveraging user-generated content and running targeted ad campaigns."
Relevant goals in marketing are crucial in the vast marketing landscape. It's critical to focus on goals that align with overarching business objectives and marketing strategies. A relevant goal might be "Increase brand awareness among the target audience through influencer partnerships and targeted PR campaigns."
Time-bound goals in marketing create a sense of urgency and maintain focus. Deadlines drive action and prevent procrastination. By setting a timeframe for goals, marketers encourage timely execution. A time-bound goal could be "Launch a new product line and achieve $500,000 in sales within three months of its release."
Practical Examples of SMART Goals in Marketing
Now that we have explored the different components of the SMART goal framework, let's dive into some practical examples of how marketers can apply this approach to various marketing objectives.
Example of a Specific Marketing Goal
A specific goal for a digital marketing agency could be "Increase organic website traffic for client XYZ by 30% within six months by optimizing on-page SEO, creating high-quality content, and implementing targeted backlink building strategies."
In order to achieve this goal, the agency can conduct a thorough SEO audit of the client's website to identify areas for improvement. They can then optimize the website's meta tags, headings, and content to improve its visibility in search engine results. Additionally, they can create engaging and informative content that resonates with the target audience, increasing the chances of organic traffic growth. Finally, they can implement a strategic backlink-building campaign, reaching out to relevant websites and influencers to secure quality backlinks that drive traffic and improve search rankings.
Example of a Measurable Marketing Goal
A measurable goal for an e-commerce business could be "Increase monthly online sales by $10,000 within three months through the implementation of personalized email marketing campaigns, upselling strategies, and customer retention initiatives."
To reach this goal, the e-commerce business can segment its customer database and create personalized email marketing campaigns tailored to the specific interests and preferences of each segment. By sending targeted offers, product recommendations, and exclusive promotions, they can increase customer engagement and drive more sales. In addition, implementing upselling strategies, such as offering complementary products or upgrades during the checkout process, can help increase the average order value. Finally, implementing customer retention initiatives, such as loyalty programs or personalized follow-up emails, can encourage repeat purchases and increase customer lifetime value.
Example of an Achievable Marketing Goal
An achievable goal for a social media marketing specialist could be "Increase Instagram followers by 10,000 within one year through a combination of compelling content, strategic collaborations, and targeted advertising."
To accomplish this goal, the social media marketing specialist can focus on creating visually appealing and engaging content that resonates with the target audience. By posting consistently and utilizing relevant hashtags, they can increase the visibility of their content and attract more followers. Additionally, they can collaborate with influencers or complementary brands to reach a wider audience and gain exposure. Lastly, targeted advertising campaigns on Instagram can help in reaching specific demographics or interests, further boosting follower growth.
Example of a Relevant Marketing Goal
A relevant goal for a B2B software company could be "Generate 100 qualified leads from industry-specific events and webinars within six months to drive sales pipeline growth and expand market share."
In order to reach this goal, the B2B software company can participate in industry-specific events and webinars where they can showcase their expertise and solutions. By delivering valuable presentations or hosting informative webinars, they can attract the attention of potential customers and generate leads. Additionally, they can offer exclusive discounts or trials to event attendees, encouraging them to take the next step in the sales process. By focusing on industry-specific events and webinars, the company can verify that the leads generated are highly relevant and have a higher chance of converting into customers.
Example of a Time-bound Marketing Goal
A time-bound goal for a content marketing manager could be "Publish 50 high-quality blog posts within three months to improve organic search rankings and increase traffic to the company website."
To achieve this goal, the content marketing manager can create a content calendar outlining the topics, keywords, and publishing schedule for the blog posts. By conducting thorough research and providing valuable insights, they can create high-quality blog posts that resonate with the target audience. Additionally, they can optimize the blog posts for search engines by incorporating relevant keywords, meta tags, and internal links. By consistently publishing valuable content, the company can improve its organic search rankings, attract more organic traffic, and establish itself as a thought leader in the industry.
By following these examples and tailoring them to their specific needs, marketers can create SMART goals that optimize their efforts, boost performance, and achieve tangible results. Remember, SMART goals are a powerful tool in the arsenal of every marketer seeking to excel in today's competitive landscape. Embrace this framework, and watch your marketing endeavors flourish.
Set SMART goals using practical examples and Wrike's advanced goal-settingcapabilities. Sign up for a free trial and drive your marketing efforts towards definable, attainable results. Note: This article was created with the assistance of an AI engine. It has been reviewed and revised by our team of experts to ensure accuracy and quality.
Marketing
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To stay effective and relevant in the ever-changing world of marketing, marketing professionals need to develop these five in-demand skills.
Project Management
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How to Track your Digital Channels with Digital Marketing KPIs
In the good old days of digital marketing circa 1971 (when the first ever email was sent), the best indicator of campaign success was whether or not someone looked at what you put out into the world. Now that technology is more advanced and the market is flooded with content, marketers need to use a more sophisticated approach. Enter digital marketing KPIs.
Today, agency and marketing directors use digital marketing project KPIs to improve profit, streamline resources, and prove return on investment to their clients. Keep reading to discover the definitions, examples, and tools top marketers use to remain competitive in today’s digital landscape.
What are digital marketing KPIs?
KPI stands for key performance indicator which is also known as performance metrics. A digital marketing key performance indicator is what marketers use to measure the success of a particular strategy or marketing channel. The KPI or KPIs you choose will depend on what your goal is for the project.
Marketers will often choose one or two primary KPIs to support their main goal and a handful of relevant secondary KPIs to support any additional objectives.
For example, let’s say you run a social media campaign on Twitter and your goal is to increase your engagement percentage within your existing audience. Your primary KPIs will be the number of comments and retweets each original tweet receives.
There are three main categories of digital marketing KPIs to know:
1. Awareness
Awareness is all about getting your brand in front of as many new people as possible. If your brand is already established, the next challenge is to help potential customers learn about new products or services they might be interested in. Common marketing tactics in this phase include cold emailing and calling.
2. Conversion
The goal of this phase is to make a sale. Marketers often do this by building long-term relationships and trust. Content like blog posts and podcasts with problem-solving advice for the audience works well for this stage.
3. Analysis
After you make a sale you can use analysis KPIs to determine how much you spent in resources to acquire each new customer. This information will inform your next campaign.
Why set KPIs in digital marketing?
KPIs in digital marketing prove return on investment to clients and stakeholders. They also help you measure progress, streamline processes, and quantify what would otherwise be intangible marketing benefits. Using KPIs in digital marketing will help you better understand why something does or does not work for your particular brand or strategy.
Without KPIs, marketing agencies run the risk of throwing spaghetti at a wall and seeing what sticks. If your agency does not assert its value and authority through actual proof, it’s hard to get or keep clients long-term. KPIs translate into concrete numbers that prove what you’re doing is getting real results.
Who sets KPIs in marketing?
At an agency, a marketing or agency director will set the KPIs. Otherwise, the responsibility falls on the campaign manager.
Whoever chooses the KPIs also has to come up with a plan for tracking them. They may adopt related marketing tools and habits to make sure results are consistently recorded and monitored throughout the lifetime of each campaign.
Agency project management tools such as Wrike can help streamline these processes. Users can easily assign monitoring and reporting tasks to designated teammates so that nothing slips through the cracks.
Marketing KPI examples
Marketing KPIs differ from project to project, platform to platform, and goal to goal. Use these most common marketing KPI examples below as a jumping-off point:
Email marketing KPIs
1. Number of emails successfully delivered, opened, and/or replied to
What it is: The total of all emails interacted with compared to the total sent.
Why you need it: This information tells marketers if their messages are getting through to inboxes. It also demonstrates whether or not the subject line is persuasive enough and if the campaign promotes further engagement.
How to measure it: Use an email marketing campaign software to bypass spam filters and track open rates.
2. Embedded link and CTA button click-through rates
What it is: The percentage of people who have both opened your emails and clicked the link or button inside.
Why you need it: The click-through rate shows how effective your offers or calls to action are.
How to measure it: Add a link tracking app to test components like CTA messages, colors, and placement.
3. Social shares and forwards
What it is: The number of times a post has been shared or sent to other people from social media.
Why you need it: Sharing is a high-value form of engagement that gets your posts in front of more people which is great for increasing impressions and expanding your audience.
How to measure it: Most social media apps include this information within your Analytics.
Social media KPIs
1. Number of followers versus number of unfollowers
What it is: The total number of people who have followed your account that day or week compared to the number of people who have unfollowed your account in the same.
Why you need it: Ideally you'll have more followers than unfollowers but this KPI shows whether or not your content is targeting the correct audience and is interesting enough to keep their attention.
How to measure it: Your number of followers is publicly available at the top of your social media profile. However, you may need to use a third-party app to track unfollowers.
2. Likes, comments, and shares
What it is: These are the top forms of engagement for any social media post regardless of what platform it's on.
Why you need it: Better engagement equals higher conversion rates, steadier audience growth, and stronger relationships over time.=
How to measure it: This information is made publicly available on most social media platforms.
3. New impressions
What it is: The number of times your content was organically shown to someone on the platform whether or not they interacted with it.
Why you need it: This social media KPI demonstrates reach, which you should aim to increase over time through paid ads, better engagement, and more followers.
How to measure it: Creator analytics or a behind-the-scenes app will show your new impressions by day, week, or month.
Content marketing KPIs
1. Unique visits
What it is: The total number of people (or IP addresses) clicking on your website within a given time frame.
Why you need it: Unique visits document the volume of traffic over time, which is useful for selling products and services. However, some unique visits might be from bots which is why it's critical to also track engagement and conversions at the same time.
How to measure it: Website analytics platforms like Google help users track this data after it’s set up, which means historical data will not be available.
2. Average time on page
What it is: The average amount of time all visitors (both unique and returning) spend on each individual web page.
Why you need it: Your goal should be to make the average time on page high because it will likely lead to better sales conversion rate. Plus it shows that your content is relevant to your audience.
How to measure it: Website analytics tools will help you measure it.
3. Link and CTA button click-through rates
What it is: The percentage at which all site visitors click on links and buttons.
Why you need it: Most website links and buttons are tied to sales or important data capture such as email newsletters. Having a high rate of success means that your offers and audience are in alignment.
How to measure it: Website analytics tools or third party link tracking apps are best.
SEO KPIs
1. Keyword search engine ranking
What it is: How high your website ranks for a specific keyword or phrase within popular search engines.
Why you need it: Your goal should be to rank number 1 on Google and Bing. Or on the first page, at the very least, so that more people will find and click on your website.
How to measure it: Type in your keyword phrase into a search engine to see if it shows up or use a tool like SEMRush for more advanced analytics.
2. Organic traffic
What it is: Site traffic from anything other than paid ads.
Why you need it: High rates of organic traffic means that more people are finding your products and services by simply searching related questions or words, which indicates that your SEO strategy is working.
How to measure it: Use a website analytics tool.3. Link click-through rates
What it is: The rate at which people are clicking on paid search advertisements or web pages that appear organically in search results.
Why you need it: For paid ads, the link click-through rate shows how effective your copy is.
How to measure it: Website analytics and third-party apps help you track individual links. Also, whichever search engine advertisement platform you use will likely track this data automatically.
PPC KPIs
1. Click rate
What it is: Percentage of people who see your ad in search engines and click on it.
Why you need it: The higher the percentage, the more persuasive your copy is.
How to measure it: Your advertising platform will have user analytics for you.
2. Sales conversion rate
What it is: The total number of sales divided by the number of interactions with a given paid ad.
Why you need it: This number shows whether or not the offer promised in the ad is still relevant for the audience the ad is being shown to and if it aligns with their expectations enough to persuade them to buy.
How to track it: Your advertising platform will have these statistics for you.3. Cost per acquisition
What it is: The dollar amount you pay for every new customer you obtained through a paid advertisement.
Why you need it: This shows exactly where your budget is going and whether or not your campaign is worth reinvesting in.How to track it: Use an analytics tool or divide the total cost of the PPC campaign by the total revenue made from it.
What are the challenges of marketing KPIs?
The main challenge of marketing KPIs is choosing the right ones, monitoring them effectively, and turning data into actionable insights. To choose the right marketing KPIs every time, create SMART goals then match KPIs to link your channel type (like email or social media) to your desired outcome. To monitor them effectively, make sure that all your KPIs are measurable and that there are tools in place to capture all related data. Finally, turn data into actionable insights by using a professional services management platform to create automated reports plus easy-to-read insights.
What to do when KPIs aren't met
Now that you have your digital marketing KPIs set, it’s important to know what happens if your KPIs are failing. If they’re not connected to strategy, overshooting (or undershooting) your goals, or are too outdated now, the best way to get back on track is to adopt a marketing project management solution like Wrike.
Why Wrike can help you with digital marketing KPIs
Wrike helps directors and managers use digital marketing KPIs to make informed decisions. Wrike Report automates marketing, data capture, assessment, and reporting using visual graphs so that KPIs are easier to understand. At-a-glance updates like these save time and make collaboration that much smoother.
Marketing teams can also create templates for repeated campaigns or to relive the success of another client’s strategy for a new project.
Use Wrike’s two-week free trial to visualize your objectives and key results (OKRs) so that your KPIs are bulletproof throughout any project.
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