KPIs, the cardinal points to drive the business
I want to approach probably at the most important point of analysis to drive the business: the KPIs, Key Performance Indicators.
I talk, in another video, about the indicators we can check to evaluate the general health of a company; but in this video I want to approach another level of analysis. Every analysis starts from the sales and they are the most important driver, but to adjust the management and improve the performances, we must use the KPIs.
The KPIs are specific for every business and they are fundamental indicators to drive the business, day by day.
They are the navigator tells us, cross by cross, where we are going and how, they help to change the direction and evaluate the effectiveness of our strategy and activities. The KPIs give us a scale to evaluate where we are, where we are going and if our strategy is productive.
For the peculiarity of the KPIs, there are not common indicators for every business, but they are specific for each market. We can introduce or remove KPIs in every moment, it depends which performances we want to measure. The KPIs give us the numbers about the performances we want to evaluate, and, on this base, we can understand if we are improving or not. The KPIs help to break up the performance or sales to work on every single data to improve the general result.
If we want to increase the sales, we can check on the increase of number of products or services per ticket or invoice, we can improve the conversion rate, the ratio from number of people whose we have a contact or that enter in our shop or ecommerce and the number of customers we served.
If, instead, we want to improve an office, we can check how many documents we close per day or week, or per person, or how many times the office request a determinate procedure.
We can introduce the right KPIs for every activity, department, or office of the business, they depend on which results we must achieve, but with them we can monitor the performance, and this should be a base of management.
The analysis of KPIs helps to find new opportunities or improve the processes and introduce automations. We can understand if there are trainings to design and deliver, or if we need to introduce a new category of product to increase upselling and cross-selling. We can also monitor if our communication is effective and if our marketing activities work.
Which are your KPIs? Which is your strategy to improve them? Let me know in the comments and remember to click the like below, subscribe my channel and follow me on Facebook, Instagram, and LinkedIn.