Which key performance indicators should you track?
KPIs measure progress towards strategic goals, but the right selection depends on the business. We explain which indicators help manage and develop your company.
1. Financial KPIs
Key financial KPIs include:
- Sales volume: Total sales revenue in a defined period.
- Profit: Net profit after all expenses.
- Return on investment (ROI): Net profit relative to investment.
- Profit margin: Profit margin per product or service unit.
2. Marketing KPIs
Marketing KPIs for campaigns and acquisition:
- Customer acquisition cost (CAC): Average cost of acquiring a customer.
- Lead generation: Prospects acquired through marketing.
- Conversion: The share of visitors completing a target action.
- Marketing return on investment (MROI): Marketing returns relative to spending.
3. Operational KPIs
Operational KPIs evaluate internal efficiency:
- Labour productivity: Tasks or products completed per unit of time.
- Order fulfilment time: Average order fulfilment time affects satisfaction.
- Defect rate: Defect rate: the share of unsuitable products or services.
4. Customer KPIs
Customer satisfaction and loyalty KPIs:
- Customer satisfaction (CSAT): Customer satisfaction measured through surveys.
- Net Promoter Score (NPS): Customers willing to recommend you.
- Customer retention rate: The proportion of customers remaining over a defined period.
- Average order value: Average customer purchase value.
5. Innovation KPIs
Innovative companies should track:
- Number of new products: Products launched within the period.
- Research and development (R&D): Investment in research and development.
- Time to market: Average time from development to launch, indicating delivery efficiency.
Conclusion
Choose relevant KPIs, review them regularly and adjust strategy. Tracking helps respond to change, improve operations and pursue business goals.
Our specialists help define and track KPIs. We can help develop a useful KPI system for your business.
