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 KPI

SMART metrics is one way to measure the importance of a success predictor. Usually, the acronym SMART means Specific, Measurable, Attainable, Relevant, Time-bound.

SMART

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.

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