Your data means nothing if you are not looking at the correct information. That's where Key Performance Indicators, or KPI's, come in. These allow your company to determine what success looks like and then attribute a metric to track it and determine how well your company meets those goals.
Unfortunately, choosing the proper KPIs can be a difficult task. That's why we have put together a quick guide to help you determine just the right KPIs for your business.
For anything that you can measure, several different data points could serve as KPIs. However, you should only select the ones that align with your current business goals. So at this moment, you'll need to think about precisely what your business is trying to accomplish. Is your goal to increase brand awareness? Or is the company more interested in lead conversion? Without a clear understanding of precisely what you want to track, you're likely to select the wrong KPI or end up measuring something that is far outside the scope of your current business goals.
There is no point in selecting KPIs that won't be useful or are too costly for your business to track. Take a little time and ask yourself what data points are needed to measure your KPIs? How much will it cost, and what are the potential returns? KPIs are valuable resources, but only when used correctly.
At least some of the events that impact the KPI need to be under your company's control. If they aren't, then the KPI isn't actionable. Meaning that very little, if anything, your company will make an impact on that metric. There's no need to spend significant amounts of time, money, and energy tracking data that your company can't use. Check out this article for a little more insight on what makes a good KPI.
There is a time and place for both types of KPIs. Quantitative KPIs provide "hard" data. These indicators offer statistically representative data and allow you to see how often or when something is happening. On the other hand, qualitative data can tell you why something is happening, such as explaining user satisfaction. Combining the two types provides a more balanced outlook of how your company is performing.
While different KPIs may make sense for specific teams or departments in your business, overall, everyone needs to be on the same page regarding company goals. Even though different groups are tracking specific KPIs, the metrics will relate and provide a bigger, more in-depth picture of the accrual status of your business.
Still a little unsure on exactly which KPIs you should be using? Contact us today, and we're happy to answer any questions you may have.
Ready to take your business to the next level? Fill out this quick form and we will be in touch soon.
© 2019 All Rights Reserved
Get news updates from ActionCOACH and learn about events, opportunities, Business Success Stories, and other inspiring articles.