It has been said that what gets measured, gets done.
“When you can measure what you are speaking about, and express it in numbers, you know something about it; but when you cannot measure it, when you cannot express it in numbers, your knowledge is of a meagre and unsatisfactory kind”
Lord Kelvin (1870)
On a business level KPI’s are clearly defined, quantifiable measures that reflect the critical success factors (CSF) of an organisation. As a general rule of thumb, CSF should target those things that affect quality, cost, customer satisfaction , market share and increased revenues.
Remember it’s far better to decide what is important to the business and measure those indicators (after justifying the cost of collection), than measure data that is readily accessible but doesn’t provide any true value.
KPI’s should help organisations understand how well they are performing in relation to their strategic goals and objectives. Which means KPI’s need to be clearly linked to objectives to enable stakeholders to determine if the organisation is on track.
Typical examples of KPIs may include:
1. The cost per order/sale, or perhaps a target increase in the average order value.
2. The cost per lead, or a specific number of quality leads (that have a designated lead-to-sale conversion rate).
3. The quality of website traffic over a specified time period, or the conversion rate of traffic to sales.
4. The percentage of the target audience that respond to a marketing campaign, or a cost per response.
Targeting these indicators, and monitoring them monthly using KPI reports and a dashboard , will determine how on track the organisation is. Remember, setting goals and keeping them at the forefront is the best way to ensure they are achieved.
When you need to create KPI reports and dashboards please contact us
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