Whether you are running a small business or a large enterprise, you can’t rely on your gut feeling (many still do) to see the kind of progress you have been making. In the modern business world, it’s important to keep a record of every single thing.
Key performance indicators (KPIs) are the vital navigation instruments used by managers to understand if their business is on a successful path. The right set of indicators will shine a light on performance, and highlight areas that need improvement.
We discussed in a previous article how to communicate business insights effectively. To facilitate the design of dashboards, and scorecards where KPI will be communicated – it is important to group them into key business perspectives.
Key business perspectives are shared by most organizations, irrespective of the type of industry or sector, and include:
Here are five business KPIs you can start tracking to help you improve your performance:
It is highly essential to keep track of all your sales in real-time because they give you insight into how well your business is doing. You can monitor every sale you make to find out what product or service people are interested in, what time they buy them, what day, and what trends data is uncovering.
Your company depends on your customers, so customer satisfaction should be one of your top priorities if you don’t want your competitor to take your customers from you. Listening to your customers will also enable you to provide the right products, and services in an ever-evolving marketplace.
The number of consumer complaints is another important KPI because it helps you identify problems that your consumers are facing so you can fix them. It is important to receive feedback and act accordingly. Resolving any consumer complaints helps to form a good relationship with them, so they keep adding up to your company’s growth.
Along with customer satisfaction (number 2) employee satisfaction is one of the most established non-financial indicators. In simple terms, employee satisfaction is used to understand whether employees are happy, content, and fulfilling their desires and needs at work. It helps us understand to what extent our employees are happy in their jobs.
It is the basic fact that any for-profit business exists to make money. The key performance question that revenue growth rate indicators help to answer is: how well are we growing our business? This KPI provides insight into how much a business’s sales are increasing over time and therefore how well is the business performing.
As noted from our recommendation of 5 essential key performance indicators we have mixed three most important perspectives; customer, employee, and financial that no business can operate without. These are some KPIs that are really crucial to track and understand.
Get in touch with our strategy practice for coffee if you would like to see how we at Hoick consolidate the view of performance that enables business owners, executives, and managers to access information in real-time on any device.
Till next time, stay good!