While large companies use KPIs to measure performance and financials across the board, many small businesses don’t take full advantage of this valuable tool. With the right KPI systems in place, you can better see the trending towards the performance goals you’re working on. The kind of KPIs you track will depend on the business you’re running, but at the end of the day, you can track every performance of your organization if you choose to do so. The key is identifying the goals of your business and measuring the activities that will lead directly to achieving those goals.
With that in mind, here are 4 KPIs your company should be tracking, and why:
Most KPIs will put this last, where in reality it should be first. After all, if you don’t know how your employees are performing, all other metrics will begin to fall by the wayside. Traditionally, these metrics involve attendance and productivity. However in modern KPIs, you’d want to include focus on engagement, happiness, work/life balance and other related topics.
The true engine for revenue. If your customers aren’t happy, they will take their business elsewhere. With today’s digital tech, even the smallest of businesses can track customer satisfaction rates. Online reviews, comments and ratings are now a big driver to pay attention to for KPIs.
Website traffic / Social engagement
Almost every business out there uses website traffic and social media to engage with their audience. The good news is there are multiple options out there to measure your online performance, which makes it much easier to include in your KPIs. With this data, you can better understand how your customers are engaging with your digital presence, then you can strategize how to target them in a way that is more productive.
How much do you budget for marketing? More importantly, how are measuring your marketing efforts and their delivery? A marketing KPI can give you all these answers and more. By measuring marketing efforts, you can usually determine the ROI for customer acquisition, retention, cost per lead and more. At that point, you can start spending more on what is delivering for better returns.