Kpi

KPI (Key Performance Indicators ), or Key Points of Interest, determine the effectiveness of individual activities. It is an extremely helpful tool in managing an organization in many areas. KPIs are used primarily as tools to control actions, measure performance or measure progress both within the company and its departments, and compare our work with our competitors. The indicator tells us whether the set goal has finally been achieved and allows us to keep track of the progress or decline of accomplishing the strategic objectives of a given activity. Remembering to track KPIs will provide you with information regarding reaching strategic goals.

Examples Key Performance Indicators (KPIs)

• for sales: the number of customer referrals, the number of phone calls made and the ratio of contacts gained in this way, the average order value, the number of complaints, the number of orders placed by new customers, the ratio of e-mail openings, net sales, net profit margin
• for e-commerce: duration of a visit to a store, conversion rate from a given sales channel, number of page views per session, number of products in an offer, average time spent on the website
• for marketing campaigns, a KPI report allows a quantifiable measure of the actions taken

Other KPI examples and leading indicators

• customer acquisition cost
• customer lifetime value
• customer satisfaction (net promoter score)
• employee satisfaction
• measuring organizational goals
• financial KPIs
• as a leading and lagging indicators
• financial performance
• sales revenue
• gross profit margin

In summary

In the simplest terms, KPI data is a way of managing the entire company and individual tasks or projects and how they are making progress. It should be focused primarily on critical areas of the business. It may happen that finding the perfect Key Performance Indicator (KPI) will require a lot of work and time. Nevertheless, it will be well worth it, because, thanks to it, our actions will be more effective and will bring us closer to achieving our goals by monitoring business performance.