KPI’s or Key Performance Indicators are metrics that every business owners should be tracking.
A Key Performance Indicator is a measurable value that demonstrates how effectively a company is achieving key business objectives. Organizations use KPIs to evaluate their success at reaching targets.
These are similar to metrics on a balanced scorecard. Of course they are very different and specific for your business or industry-similar to your fingerprint or blood work.
In order to be successful at growing and building your business, there are a few important metrics you should be tracking. Here are a few KPI’s you may consider keeping track of in your business.
Sales or revenues are a great indicator of the health of your business. The number one reason entrepreneurs fail in business is the fact that they are not selling enough products. Sales are the driving force behind your business. Having clearly set targets and goals for your sales team is an important metric. Tracking your sales daily, weekly, monthly and year over year will help you to know how if your business is progressing or stagnating. Some examples of what can be tracked includes; average sale per customer, year over year sales, and sales per representative if you have a team.
- Customer Retention and Growth
Customers are the lifeline of your business. If you don’t have customers you do not have a business. Do you know your customer’s journey? Here are a few questions to ask yourself:
- Are you increasing the number of customers you have? Are you loosing customers? This is another indication of how well your product is resonating with consumers.
- If they are no longer using your services, what happened? Did they move away or did they find another provider?
- Are you getting referrals from past customers? The best referrals are when your customers become raving fans.
Tracking your customers is a very important metric for entrepreneurs.
- Social Media Impact
Ignoring the value of social media in today’s market place is similar to ignoring cashflow in your business. Entrepreneurs should measure the impact of their social media by different channels such as Facebook, Instagram, YouTube and Twitter. Also they should measure its impact of driving both traffic and revenue in your business.
Looking at the results will help to give you clarity on where you should be spending your time and effort.
Answer the following questions:
- Which platforms are you on?
- How many people are following you?
- Is your list growing?
- Which platforms are your customers on?
Pinpoint the social media channels that your customers are on and then show up there on a regular basis.
Social media is a two way street. Engagement matters, make sure that if you are putting out content you are taking the time to respond to comments on your posts. When your customers communicate with you, ensure that you are engaging with them by responding to their comments.
What gets measured gets done!
Which social media channels are giving you the best results? Leave a comment below.