What Are My KPIs?
Your business cannot wander aimlessly without a goal in mind. Whether it’s building a customer base or selling your products and services, your goal should help keep your business afloat. Therefore, you need to formulate a strategy made up of different tactics, all of which are geared towards producing results that will bring you closer to your goal.
To guide in your journey towards achieving your business goal, you need to identify your key performance indicators, or KPIs. These will help you measure your progress and see how well your business is doing. Unlike metrics, which serve as benchmarks to your business goals, KPIs help provide you with recommendations and actionable items to keep your progress in check.
What you need to know about KPIs
When choosing KPIs to help track your progress, you need to focus on tasks that make a profound impact on your business growth.
To help you choose your KPIs, you need to take the S.M.A.R.T approach:
- Specific – Are your KPIs narrowed down to a specific task in your business?
- Measure – Are you able to gauge the results of your progress and evaluate them to see if there are areas for improvement?
- Attainable – Can you achieve your KPIs within reason?
- Relevant – Are your KPIs closely related to your business objectives and core message?
- Timeframe – Can you provide a reasonable time when you can attain your KPIs?
Who needs KPIs in your business?
The long and short of it is everybody needs to have KPIs. Since scaling your business performance is critical if you want to achieve your goals, you need to find ways to measure all your employees and departments based on KPIs that are most relevant to their job description.
For example, your sales team should be focused on bringing in more customers or generating more revenue for your business. Different possible KPIs for your sales team include:
- Monthly target sale
- Sales growth and deals closed vs. projected goals
- Ratio of cost of sales vis-a-vis revenue
For more information on how to develop metrics and KPIs for your sales department, click here.
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