Key Performance Indicators (KPI)

Key Performance Indicators (KPI)

If you want to be at the top of your field, you must track the performance of your business. Although it may seem arduous, there is no option other than to meaningfully track your business performance on a consistent basis.

What are KPIs?

KPI stands for Key Performance Indicator. This level of tracking is designed to monitor the metrics in between the most obvious and most common data points that indicate how a business is performing: your gross revenue and net profit.

The story to be told in the data between your gross revenue and net profit is significant.

For example, if you are experiencing a drop in revenue, do you understand why it is happening?

If you don’t understand why it’s occurring, how do you fix it?

Sometimes, the answer might be as simple as a lead source drying up. Or, your marketing stopped working on a particular channel.

But what do you do when everything seems to be in order, and yet you’re experiencing a negative financial impact?

On the other hand, how do you know when you are ready to create a new position?

What information are you utilizing to create your budget, and are you for casting with an eye on current trends within your business?

You need to have ways of measuring the performance of your business at every stage to equally identify challenges and opportunities.

Why KPI Tracking Matters

Tracking your business performance will simply give you the ability to make informed decisions. And you will feel more decisive in your decisions when you know they are based on hard data.

When a business is looking to improve or to fix something that is wrong, it’s easy to make the wrong decisions without the proper data. We’ve often encountered leadership teams that were mismanaging internal challenges because they lacked sufficient data on their team’s performance.

Likewise, we’ve seen leadership teams who have allowed underperformers to harm their business for too long because they were unaware of how poorly they were performing.

What do you want to track in your business?

For a sales team, perhaps the activities to measure are daily outbound calls to new prospects, follow-up calls to current prospects, etc.

For medical professionals, you may want to evaluate the number of opportunities, and then use industry benchmarking to determine how well they are performing with the opportunities presented.

With home services professionals, we might focus on response times to leads to ensure that our lead generation efforts are being fully capitalized upon. And perhaps we’ll want to track the ratio of upsells against appointments.

With any business, these are some common areas of focus that you should be tracking:

  • Individual revenue streams.
  • Cost of goods by category.
  • Income to expense ratios.
  • Staffing & related expenses against gross revenue.
  • Staffing ratios.
  • Lead sources.
  • Schedules.

Can we help you reach  your goals?

Schedule a free consultation and we’ll take a look at your competitors and help you better understand how to beat them online.

Do You Need Help with KPI Tracking?

Whether you want to refine your current tracking, or you’re looking to create and implement new levels of tracking within your business, our team of experts is well equipped to help you find customized solutions that will have an impact on your business.