First, what is a KPI, besides another unknown acronym? A KPI is a key performance metric. You may already be using KPIs with your business without realizing it. In short, a KPI is a measurable goal that you would like to achieve for your business with quantitative metrics that you follow on your way to achieving better performance. KPIs will vary from organization to organization, depending on what you want to achieve, but every business should utilize them to improve. They can be as simple as profit, but are often more complex to target certain areas to track.
KPIs are important because they are measurable and help you see your success. If you run an online shop, and important KPI might be the number of customers who abandon items after they put them in the cart. You may want to set up a KPI to look at how to improve the full checkout rate. Using analytics would be key at this point to track the how well re-marketing emails or google ads would work to bring customers back to complete their purchase. Once you see a trend in a direction, you can allocate more resources to what you know works better to improve that specific KPI.
If you are already using KPIs, great job! See if you can’t add another one for 2017. If you aren’t, feel free to give me a call and we can talk about what might be best for you to start tracking, and how to go about achieving that.