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What Are KPIs and How to Measure Yours
As a business owner, you're always looking for ways to improve your company's performance and measure your success. One way to do this is by setting key performance indicators (KPIs.)
What is A KPI?
KPIs are measurable values that indicate whether a company is meeting its goals. They can be financial, such as profitability or revenue growth, or non-financial, such as customer satisfaction or employee retention.
Why is it Important to Track Your KPIs?
No matter what KPIs you choose, it’s important to track them regularly and compare them to your goals so you know if you’re on track to meet them. This will help you see how your company is performing and identify areas where you need to make improvements.
How Can CANDDi Help You Track Your KPIs?
CANDDi can help you track your KPIs in a number of ways. First, we can help you identify which ones are most important to your business. Then, we can help you set up tracking systems so you can monitor your progress and spot any areas where you need to make improvements.
How to Use KPIs to Measure Your Progress
To set KPIs, you first need to identify your company’s goals. Once you know what you’re trying to achieve, you can choose the right KPIs to measure your progress.
One of the most important things to remember when measuring your KPIs is that you should be specific to your business. What works for one company might not work for another.
For example, if your goal is to increase sales, you might set a KPI to track the number of new customers acquired each month. Or if you’re trying to improve customer satisfaction, you might track the number of customer complaints received.
10 Important KPIs to Track
1. Revenue Growth Revenue growth is one of the most important KPIs for any business. It indicates whether your company is making more money each month, quarter, or year.
To calculate revenue growth, you can use this formula:
Revenue Growth = (Current Revenue - Previous Revenue) / Previous Revenue
Sales are another important KPI to track. This metric indicates how much revenue your company is generating from sales. To calculate sales, you can use this formula:
Sales = (Number of Sales) x (Average Sale Price)
3. Customer Satisfaction
Customer satisfaction is a key metric for any business. It measures how happy your customers are with your products or services.
There are many different ways to measure customer satisfaction, but one popular method is the Net Promoter Score (NPS). To calculate your NPS, you can use this formula:
NPS = (% of Promoters) - (% of Detractors)
4. Employee Satisfaction
Employee satisfaction is another important KPI to track. This metric measures how happy and engaged your employees are with their jobs.
There are many different ways to measure employee satisfaction, but one of the most popular methods is Employee Engagement Surveys.
5. Retention Rates
Retention rates measure how many of your customers or employees stick around over time. This metric is important because it indicates whether your company is able to keep its customers or employees happy.
There are many different ways to measure retention rates, but one of the most popular methods is the Churn Rate. To calculate your churn rate, you can use this formula:
Churn Rate = (Number of Customers Lost / Total Number of Customers) x 100
6. Engagement Levels
Engagement levels measure how often your employees or customers interact with your company. This metric is important because it indicates whether your company is able to keep its employees or customers engaged.
There are many different ways to measure engagement levels, but one of the most popular methods is the Net Promoter Score (NPS). To calculate your NPS, you can use this formula:
NPS = (% of Promoters) - (% of Detractors)
7. Quality of Leads
The quality of leads measures how likely your leads are to convert into customers. This metric is important because it indicates whether your company is generating high-quality leads.
There are many different ways to measure the quality of leads, but one of the most popular methods is the Lead Score. To calculate your Lead Score, you can use this formula:
Lead Score = (Number of Qualified Leads) / (Total Number of Leads) x 100
8. Website Traffic
Website traffic is the number of visitors to your website. This metric is important because it indicates how much interest there is in your company.
To calculate website traffic, you can use this formula:
Website Traffic = (Number of Visitors) x (Number of Page Views)
9. Social Media Engagement
Social media engagement is the number of interactions with your company on social media. This metric is important because it indicates how well your company is connecting with its audience on social media.
To calculate social media engagement, you can use this formula:
Social Media Engagement = (Number of Likes) + (Number of Shares) + (Number of Comments)
10. Conversion Rates
Conversion rates measure the number of visitors to your website who take a desired action. This metric is important because it indicates how effective your website is at converting visitors into customers or leads.
To calculate conversion rates, you can use this formula:
Conversion Rate = (Number of Conversions) / (Total Number of Visitors) x 100
If you’re not sure where to start, there are many online tools and resources that can help you choose the right KPIs for your business. Once you have your KPIs in place, you can start tracking them and measuring your progress. One of the most popular ways to track and measure is to use a dashboard.
A dashboard is a visual display of your KPIs that allows you to see how your company is performing at a glance. You can use dashboards to track KPIs in real-time, identify trends and make decisions about where to focus your attention.
There are many different dashboard software options available, so it’s important to choose one that’s right for your business. Some factors to consider include the features you need, the price and the ease of use.
Key performance indicators, or KPIs, are essential for any business to track in order to measure progress and success. By understanding what your KPIs are and how to measure them, you can make data-driven decisions that will help your business grow.
At CANDDi we specialize in tracking website visitors so you can identify the people who matter most for your business. Contact us today to learn more about our services and how we can help you track your KPIs!