What are key performance indicators (KPIs)? Simply put, they’re quantifiable measures of performance over time for a specific objective. You can track your progress and make better decisions to grow your business by tracking KPI levels. But how do you track them? In this blog post, we’ll discuss companies’ tools and methods to monitor performance metrics. We’ll also look at the how and why of tracking KPI levels to grow your business in North Carolina.
What are Key Performance Indicators (KPIs)?
It’s crucial to track key performance indicators (KPIs) to grow any business. By monitoring KPI metrics, business owners can make data-driven decisions to help a company reach its goals.
Examples of important KPIs for overall big-picture growth include:
- Net profit over time
- Total Revenue over time
- Employee tenure
- Monthly recurring revenue
Track KPIs to Grow Your Business
Tracking KPIs is essential for measuring progress toward attainable goals and long-term objectives. Furthermore, KPI tracking acts as a benchmark of success that allows you to measure your successes and track improvement over time.
KPI tracking involves far more than simply collecting data and measuring results – it also requires displaying these figures in a straightforward, easy-to-comprehend format, such as reports, charts, or custom-designed dashboards.
As a crucial aspect of your business strategy, KPI tracking helps you quantify whether your business objectives are on target and find ways to improve business management. Many businesses use multiple KPIs as a part of business strategies to measure performance.
Sales Key Performance Indicator Data
Use KPI reports to visualize data analysis and measure business performance
For example, your sales team can easily see an interactive dashboard showing their converted leads and monthly sales growth.
With actionable insights measuring performance, your sales force can now strive to meet measurable targets and see valuable insights in real time. They can measure the progress of each individual and also the team as a whole.
Marketing Key Performance Indicator Data
KPI reporting is standard in marketing campaigns, also. Deciding on the right metrics to analyze for your business takes time and practice.
Some of the standard marketing KPIs include these important metrics:
- Sales Growth using sales funnel data
- Marketing Leads
- Customer Lifetime
- Customer Loyalty
- Customer Satisfaction
- Digital Marketing ROI
- Cost of Customer Acquisition
- Sales Team Response Time
- Website Traffic to Website Lead Ratio
- Website Lead Generation To Marketing Qualified Lead (Mql) Ratio
- Quoted To Closed Customer Ratio
- Website Traffic and Search Rankings using Google Analytics
- Social Media Reach & Engagement
- Email Marketing Performance
- Inbound Link Building
- Landing Page Conversion Rate
- Blog Post Visits
- Mobile Traffic Leads and Conversion Rates
- Organic Traffic/Top Five Entry Pages
- Net Promoter Score (NPS)
- Follower Growth (1)
Marketing teams often measure the success of a marketing campaign and then measure the historical data of older marketing trends against the newer ones.
Google Analytics
The most common tool for tracking KPIs is web analytics. Google Analytics tracks data for website performance with visualizations that give insights into what’s next for your company’s growth.
It’s crucial to understand that you’ll need to evaluate whether you’re focused on the best KPIs to help your business grow. Working with a business attorney can help you understand the big-picture KPIs you need to track!
KPI Monitoring Strategies
With the best KPI reporting tools, the data visualization you achieve gives you the insights you need. When you import data into KPI tracking software, it can produce historical trends in almost any area imaginable.
KPI monitoring tools for 2023 include an advanced suite of features and capabilities to help you monitor and analyze your business’s performance. All KPI tools should come with the ability to do the following:
- Customize KPIs
- Build custom reports
- Create automated alerts for when teams do not meet specific targets
- See interactive dashboard visualizations for better data analysis
Your KPI tracking strategies should cover every aspect of your business and help you measure the success of each goal. For example, when tracking customer satisfaction, KPI monitoring tools should provide data points such as response time and NPS score to see how successful your customer service is at improving customer satisfaction.
KPI reporting also allows you to identify key areas for improvement in your business processes. With the help of data visualization, you can spot outliers in your data that indicate areas where you need more attention. You can see where to focus resources, optimize processes, and measure customer satisfaction over a certain period.
KPI reporting also allows you to explore future scenarios, such as a “what-if analysis.” Then you can make informed decisions about future adjustments or investments. Your team knows the goals and how their efforts contribute to the business’s success.
Overall, KPI monitoring is essential to any organization’s strategy in 2023. Organizations can gain a deeper understanding of their performance with the right set of monitoring tools and data visualization. This can help you make informed decisions to optimize processes and drive better results for the business.
Some of the more popular KPI softwares out there now include: Datapad, Klipfolio, Geckoboard, Databox, Mixpanel, Arena Calibrate, Zoho Analytics, Mode, InetSoft, Tableau, Praxie, Smarten Augmented Analytics, and DashThis. (1)
KPI Dashboards
KPI dashboard software unites data sources and provides real-time visual feedback. Interactive dashboards help companies with monitoring KPIs and keeping a higher customer engagement level.
Using KPI monitoring, companies can understand how their sales funnels work from lead to conversion and get insights on improving their operating practices.
With the suitable KPIs, you can see the metrics you want to drive your business goals.
This advanced analysis of data sources can bring useful metrics that show you how to make informed decisions for the future! Whether your business goal is to improve employee engagement, streamline your business operations, or cut customer acquisition costs, you can leverage all your data into your company’s growth.
Marketing data is especially crucial to track as this is ground zero of how you convert individuals into clients. KPIs to track your unique business will depend on your business goals.
For example, “A startup is likely to be more interested in tracking how many new customers are coming in rather than an established public company, which might be more focused on tracking share price and profit.” (1)
Working with a knowledgeable business attorney can help you see which KPI data matters to you!
Our Experienced Business Attorneys Can Help You Grow
At Hopler, Wilms, and Hanna, PLLC, we understand that you need to know both the data and how to use it. Our talented business attorneys are here to guide you as you learn how KPIs can help you grow. We also understand the importance of protecting your data, so our attorneys are ready to provide reliable and informed counsel on privacy concerns and other legal matters related to your business.
Contact our knowledgeable North Carolina business attorneys today and discuss the KPI monitoring needs of your business! We look forward to helping you reach your goals in 2023!