What KPIs Should I Measure?
I love to review reports, they tell a story….and different numbers tell different things about the company’s health and future. Depending on what industry you are in and what your goals are will depend on what numbers you look at.
The key performance indicators (KPIs) you should be looking at depend on your specific goals and objectives. KPIs are metrics that help you measure progress towards your goals, and they can vary widely depending on the industry, company size, and type of business.
Here are some examples of KPIs that are commonly used across different industries:
- Revenue: This KPI measures the total amount of money earned by the business over a given period of time. You can then compare these periods of time to see increases or decreases.
- Customer Acquisition Cost (CAC): This KPI measures the cost of acquiring a new customer, including marketing and advertising expenses.
- Customer Lifetime Value (CLTV): This KPI measures the total amount of revenue a customer is expected to generate over the course of their relationship with the business.
- Churn Rate: This KPI measures the rate at which customers stop using a product or service.
- Net Promoter Score (NPS): This KPI measures customer satisfaction and loyalty by asking customers how likely they are to recommend the business to others.
- Website Traffic: This KPI measures the number of visitors to the company’s website.
- Conversion Rate: This KPI measures the percentage of website visitors who take a desired action, such as making a purchase or filling out a contact form.
- Employee Satisfaction: This KPI measures the level of job satisfaction among employees.
These are just a few examples, but there are many other KPIs that could be relevant to your business depending on your specific goals and objectives. KPIs can change over time. You may decide to change what you are measuring because the organization is moving in a different direction. It’s important to identify the KPIs that are most important to your business and track them regularly to ensure you are making progress towards your goals.