key performance indicators
A Key Performance Indicator (KPI) is a quantitative value that indicates how successfully a business meets vital business goals.
To measure their effectiveness at achieving goals, organisations use KPIs at multiple levels. High-level KPIs may concentrate on the organisation's overall output, while in functions such as marketing, sales, HR, support and others, low-level KPIs may focus on processes.
Managing KPI's use involves setting goals (the desired success level) and monitoring progress towards that goal.
Leading indicators predict eventual success; slowing indicators reflect how effective the company has been in producing results.
What are the top 5 Sales and marketing Key Performance Indicators (KPI's)?
- Revenue per customer
- Customer Retention Rate
- Profit Margin
- Average website visits
- Bounce rate
SMART metrics is one way to measure the importance of a success predictor. Usually, the acronym SMART means Specific, Measurable, Attainable, Relevant, Time-bound.
That is, in other words :
- Is your KPI target-specific?
- Are you able to assess progress towards that KPI?
- Is the KPI feasible in a practical way?
- How important is the KPI?
- KPI must be measured over time
Usually, KPIs are an essential tool for assessing an organisation's performance and making the requisite changes more effective.