Setting business targets to achieve better business success
Key performance indicators (KPIs) are targets you set for your business to help you track and monitor the performance of key functions that will help lead to the achievement of your business goals. It is essential that you select your KPIs carefully to ensure you are targeting the best aspects of your business, the ones that are critical if you are to achieve your business goals. Below are some possible KPIs that will help you achieve business success this financial year.
What are KPIs?
They are the tools businesses use to define their goals, and establish quantitative measurements designed to determine whether any progress is being made towards those goals. They provide data that can be used to spotlight performance characteristics across a variety of matrixes such as financial performance, customer relations, marketing efforts and even employee productivity.
At the end of the day, understanding how well your financials are doing is like knowing what is going on under the bonnet of your car.
For instance, if you are losing sleep at night over whether or not your latest marketing plan was worth the investment, you will want to explore your Return-on-Investments (ROI) with a detailed ROI KPI. Conversely, a KPI can highlight underperforming net profit margins, or lacklustre revenue growth rates, and the information obtained can present valuable information to ensure the company’s original financial goals are met.
A profitable bottom line is the ultimate goal of most businesses, and customers are the key to this. As such, understanding what motivates your customers provides inestimable advantages to the business owner who knows what they are looking for. Utilizing customer relations-focused KPIs, business owners can track levels of customer engagement and subsequent retention rates. If customer satisfaction scores are sagging or turnover rates are high, the worried business owner can target their reports to help develop meaningful responses to address these lapses.
Without a viable marketing plan, few businesses can expect to prosper. With KPIs designed to highlight marketing performance, you can break down your cost per lead, brand equity positions, conversion rates, social networking footprint, and more. Get the most of every marketing dollar by discovering what is working and what is not moving you towards your sales goals.
While your marketing functions are designed to capture the customers that you are hoping will add to your bottom line, your employees are typically tasked with closing the deal. Indeed, when you are tallying up your operating expenses, many of which will relate to hiring and training employees, using KPIs to measure their performance just makes sense.
By setting and regularly monitoring your business KPIs you will be able to track your business progress throughout the year. If you would like help with this speak to the experienced team at BSN & Co. We are business specialists who have helped lots of businesses just like yours to save time, money and generally improve their performance.
Call us today or complete the Contact Us form (it only takes a minute) and book a FREE no obligation business review.