This document defines 18 key performance indicators across financial, customer, process, and people metrics. Financial metrics include profit, cost, line of business (LOB) revenue vs. target, cost of goods sold, and days sales outstanding. Customer metrics include customer lifetime value, customer acquisition cost, customer satisfaction and retention, net promoter score, and number of customers. Process metrics cover customer support tickets, percentage of product defects, and LOB efficiency. People metrics include employee turnover rate, percentage of response to open positions, and employee satisfaction.
This document defines 18 key performance indicators across financial, customer, process, and people metrics. Financial metrics include profit, cost, line of business (LOB) revenue vs. target, cost of goods sold, and days sales outstanding. Customer metrics include customer lifetime value, customer acquisition cost, customer satisfaction and retention, net promoter score, and number of customers. Process metrics cover customer support tickets, percentage of product defects, and LOB efficiency. People metrics include employee turnover rate, percentage of response to open positions, and employee satisfaction.
This document defines 18 key performance indicators across financial, customer, process, and people metrics. Financial metrics include profit, cost, line of business (LOB) revenue vs. target, cost of goods sold, and days sales outstanding. Customer metrics include customer lifetime value, customer acquisition cost, customer satisfaction and retention, net promoter score, and number of customers. Process metrics cover customer support tickets, percentage of product defects, and LOB efficiency. People metrics include employee turnover rate, percentage of response to open positions, and employee satisfaction.
This document defines 18 key performance indicators across financial, customer, process, and people metrics. Financial metrics include profit, cost, line of business (LOB) revenue vs. target, cost of goods sold, and days sales outstanding. Customer metrics include customer lifetime value, customer acquisition cost, customer satisfaction and retention, net promoter score, and number of customers. Process metrics cover customer support tickets, percentage of product defects, and LOB efficiency. People metrics include employee turnover rate, percentage of response to open positions, and employee satisfaction.
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Performance Indicators
18 Key Examples Defined
Financial metrics Profit:
This goes without saying, but it is still important to note,
as this is one of the most important performance indicators out there. Don’t forget to analyze both gross and net profit margin to better understand how successful your organization is at generating a high return. Measure cost effectiveness and find the best ways to reduce and Cost: manage your costs. This is a comparison between your actual revenue and your projected revenue. LOB Revenue Vs. Charting and analyzing Target: the discrepancies between these two numbers will help you identify how your department is performing. Cost of Goods Sold:
By tallying all production costs for the product
your company is selling, you can get a better idea of both what your product markup should look like and your actual profit margin. This information is key in determining how to outsell your competition Take your accounts receivable and divide them by the number of total credit sales. Take that number and multiply it by the number of days in the time frame you are examining. Day Sales Congratulations—you’ve just Outstanding come up with your DSO (DSO): number! The lower the number, the better your organization is doing at collecting accounts receivable. Run this formula every month, quarter, or year to see how you are improving. Sales by Region: Through analyzing which regions are meeting sales objectives, you can provide better feedback for underperforming regions. Compare your actual overhead with your forecasted budget. Understanding where you deviated from your plan can help you create a more effective departmental budget in the future.
LOB (line-of-business) Expenses Vs. Budget:
Customer metrics Customer Lifetime Value (CLV):
Minimizing cost isn’t the only (or the best) way to
optimize your customer acquisition. CLV helps you look at the value your organization is getting from a long-term customer relationship. Use this performance indicator to narrow down which channel helps you gain the best customers for the best price. Divide your total acquisition costs by the number of new customers in the time frame you’re examining. Customer Acquisition Voila! You have found your CAC. This is Cost (CAC): considered one of the most important metrics in e-commerce because it can help you evaluate the cost effectiveness of your marketing campaigns. On the surface, this is simple: Make the customer happy and they will continue to be your customer. Many firms argue, however, that this is more for shareholder value than it is for the customers themselves. You can use multiple performance indicators to measure CSR, including customer satisfaction scores and percentage of customers repeating a purchase.
Customer Satisfaction & Retention:
Net Promoter Score (NPS): Finding out your NPS is one of the best ways to indicate long-term company growth. To determine your NPS score, send out quarterly surveys to your customers to see how likely it is that they’ll recommend your organization to someone they know. Establish a baseline with your first survey and put measures in place that will help those numbers grow quarter to quarter. Similar to profit, this performance indicator is fairly straightforward. By determining the Number of number of customers Customers: you’ve gained and lost, you can further understand whether or not you are meeting your customers’ needs. Process metrics Customer Support Tickets
Analysis of the number of new tickets, the
number of resolved tickets, and resolution time will help you create the best customer service department in your industry. Take the number of defective units and divide it by the total number of units produced in the time Percentage of frame you’re examining. Product Defects: This will give you the percentage of defective products. Clearly, the lower you can get this number, the better. Efficiency can be measured differently in every industry. Let’s use the manufacturing industry as an example. You can measure your organization’s efficiency by analyzing how many units you have produced every hour, and what percentage of time your plant was up and running.
LOB Efficiency Measure:
People metrics Employee Turnover Rate (ETR): To determine your ETR, take the number of employees who have departed the company and divide it by the average number of employees. If you have a high ETR, spend some time examining your workplace culture, employment packages, and work environment. When you have a high percentage of qualified applicants Percentage of apply for your open Response to Open job positions, you know you are doing a Positions: good job maximizing exposure to the right job seekers. This will lead to an increase in interviewees, as well. Happy employees are going to work harder— it’s as simple as that. Measuring your Employee employee satisfaction Satisfaction through surveys and other metrics is vital to your departmental and organizational health. Thank you!