Bizrate Insights· Author
Anyone interested in growing a company should know what to measure, and how to measure it. That’s why we’ve created a comprehensive list of 24 KPIs to measure. From this list you can select the ones that are most relevant to your business, or even more specifically, for this quarter, or for this section of your business.
Mistakes to Avoid
Goals are not KPIs
One common mistake leaders make when implementing KPIs is to conflate GOALS with KPIs. A goal is something to strive for. Key performance indicators are quantitative, specific amounts of productivity that can be measured and reported.
Focus on what you CAN influence
Another important point is to focus on things you can influence. For example, the number of competitors in your local area is not something you have control over. However, the number of promotional emails sent by marketing, their respective open and click rate, and the resulting conversions ARE things you can impact and improve over time.
We recommend you start by implementing a limited number of KPIs. Once reporting, analyzing and acting on these becomes routine, you can think of incorporating a few others. It’s important to keep from overwhelming your team – or yourself. Just like a much-too-eager novice at the gym, one can overstrain, leading to demoralization, and abandonment of the process. But implementing gradually you can build a culture that embraces KPIs, where everyone thinks of them as a useful tool to gauge success on a weekly, monthly or annual basis.
One person should ‘own’ KPIs
Make sure to appoint a person as the ‘owner’ of KPIs. This person will champion their use, keep the processes going and facilitate reporting.
Get everyone on board
When deciding which KPIs to track, make sure you involve all the stakeholders of the process. By bringing everyone in, you’re less likely to miss something important, and folks are more likely to participate if consulted.
Choose the most relevant performance indicators
As you choose from our comprehensive list of 24 essential KPIs, make sure the indicators you set out to measure align with your current business goals. We included several categories, and it will be up to you to choose the ones that are most applicable.
Mske sure to follow through with action!
KPIs should lead to action. By reviewing and analyzing the numbers, you can start seeing which areas might need restructuring. If you find that response time in support fails to improve over time, you can think about adding staff, incentivizing proactiveness, rewarding high producers, or adding other support channels.
Have KPIs for each aspect of your business
There are many metrics that you can track in your business. Not every one of them is a KPI at a broad, business level. Some of them may be KPIs at a department level, some at a division level. Some may be applicable to the sales funnel on your website while some others may apply to support, or to the backend and development aspect of the site. By applying the right KPIs to the right areas, you can make each area expand. And that in turn will lead to your overall business growth.
Download Now: 24 Essential KPIs for Ecommerce Retailers