When you manage a business or lead a team, you probably look at a lot of data and analytics. You’ve also more likely heard than not, from industry experts, about key performance indicators or KPIs.
Dealing with numbers can be overwhelming and a tad bit unexciting to look at, but we know its importance to any business. If you don’t know this, today is your lucky day.
Before diving into knowing your KPIs, let’s define key performance indicators, in general, first.
What are KPIs?
Key performance indicators gauge actions and events that uncover how a company or a team’s performance fare in comparison to its goals. They are important barometers to measuring the success of specific campaigns or projects.
Importance of KPIs
Think of KPIs as your Health App. It can track your heart rate, vital statistics, and other body measurements like height and weight. With the Health App, you are no longer left in the dark when it comes to your health.
In terms of your business, you will also no longer be left in the dark because you’re able to set the right goals and create new strategies because you have the right metrics to guide you.
Difference between KPIs and metrics
KPIs measure performance and success, while metrics are data within a KPI that can track progress.
Define your KPIs
The best way to help define your KPI is to ask these critical questions.
- What is your business trying to achieve?
- How will you know if it worked?
Here are a few guidelines to help you define your KPI:
- KPIs are different between one business to another. Be flexible.
- KPIs have several types: Team, Business, and Individual.
Track your KPIs
It's important to track your KPIs because you can evaluate your business’ progress in comparison to your objectives. Tracking KPIs helps businesses measure all the factors affecting a company’s growth and provides a better shot at successful projects or campaigns.
Actionable KPIs that inspire teams
When gathering metrics, make sure all the gathered data are essential to your team's tasks. Developing understandable KPIs empower team members to make data-based decisions that could potentially improve the company.
Understanding and defining your business’ KPIs can take a lot of time, effort, and energy away from what matters most – the brand you’re running. Luckily, ULS is here to help develop and reach your desired KPI. We work with proven and effective research data.
How did you define your KPI? What metrics are important for your business?