Every growing business should be using KPIs to move forward and evolve but how can you do that successfully? This guide shows you how you can use KPIs in an easy and effective way.
What Are KPIs?
To start let’s talk about what KPIs actually are. KPI stands for Key Performance Indicator and is a measurable value that can show you how well your business is doing. They’re important if you are serious about the continual improvement and evolution of your business and shouldn’t be overlooked.
KPIs measure success based on your personal company targets and goals, allowing you to track how well your business is doing and helping you to understand where you are going wrong.
What Is A Business Metric?
A business metric is a quantifiable measure used for tracking a specific process. For example, marketing metrics can look into brand awareness, first visits and online conversations. Meanwhile, our SEO metrics might look at keyword opportunities and your keyword click-through rates.
What Types Of KPIs Are There?
There are many KPIs to consider and the ones you choose will depend on what type of business you are running, as well as what areas of your business you want to measure.
What are the main types of KPI you should you look out for?
- Marketing metrics and KPIs
- SEO metrics and KPIs
- Sales metrics and KPIs
- Social media metrics and KPIs
- Financial metrics and KPIs
These are just some of the biggest KPIs you will want to evaluate and follow when running your business, although there are many more.
What Should I Use To Measure KPIs?
KPIs can be measured using dashboard software that gives you updates on your metrics and KPIs in real time. There are a number of tools out there that can help you do this including Geckoboard, Grow, Simple KPI, Klipfolio, as well as many more.
Depending on your budget and your needs, you’ll find that some of these may be more suited to your business than others. Much like your KPIs, the dashboard you choose should be reflective of the type company you are.
What Are The Best Practices?
Measuring business performance is essential if you want to grow but focussing on the wrong KPIs can have a detrimental effect and actually hold you back. KPI best practices will help you create a more structured tracking system, giving you the information you can actually work with.
So, what are some of the best practices?
Attainability – Your KPIs should have data that can be easily attained by you or your team.
Actionable – Can you actually take action on the KPIs you have chosen? Will it give you data you can use?
Specifics – Your KPIs should be specific and easy to understand so that every member of your team can use them.
Accuracy – Always check to make sure the data you are receiving is accurate. Inaccurate KPI data could lead you down the wrong path.
Evolving – As your business evolves, so should your KPIs. Don’t get stuck in a bad routine using the same measurements you were a year ago.
Choosing the right KPIs for your business can really help move it forward, so ensure you’re putting in the hours to follow best practices and select KPIs that really make a difference.