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View the webinar recording here: http://www.youtube.com/watch?v=Ub3V68R5PjA&feature=youtu.be It's a fact: if you can track and understand the right metrics in your business, you will know what to do to increase sales and profits. Most business owners aren't doing this, because they don't know which numbers to track, and they don't know how to measure them accurately.
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Numbers You Need to Know to Grow Your Business
And How to Measure Them
Agenda• Why Bother?• Numbers You Need to Know to Grow
Your Business• How to Track Your KPIs
But first …
Lets define a few terms first …
What is a KPI or Key Performance Indicator?
Key Performance IndicatorA KPI evaluates a success of a particular activity. Basically, a KPI is used to measures the performance of a strategic business goal.
KPIs tend to be very different from department to department within an organization.
Key Performance IndicatorThere are several types of Indicators that are used to visually represent a process and its performance.
• Quantitative• Leading• Lagging• Directional• Financial
Key Performance Indicator
In practical terms…
KPIs are objectives to be targeted that will add the most value to an organization.
So what is a Metric?Metrics quantify performance and are generally composed of a single number. Many metrics may compose a KPI … or not.
A metric may stand on its own if the metric determines the performance of a business goal.
Here is an exampleSuppose you have a marketing campaign …
The campaign may have dozens of metrics
• Pageviews• Bounce rates• Conversion rates• And many more …
Here is an example …Each of these are metrics • Pageviews• Bounce rates• Conversion rates
But … each one individually does not determine if the campaign is successful.
Ahh…a KPI!
Using a group of metrics, we are able to analyze the outcomes and track the PERFORMANCE of our campaign (or a marketing goal)
How do we know which metrics to choose?
While there are a variety of criteria, here are some questions to ask:
1. Do the metrics accurately portray the performance of a specific goal?
2. Do you have access to all the metrics you need to build the KPI?
3. Once the metrics are defined and the KPI is created, does the KPI lead to action?
Why Bother?
Would you drive a car without gauges?
Why Bother?
1. Know how far you are from reaching your goals.
2. Pinpoint and manage key underlying issues.
3. Discover problems before it’s too late.
Why bother?
4. Quantify success and failure.5. Offer employees more constructive
feedback.
What to Measure
What to MeasureFirst thing to know …
• All organizations should have some of the same KPIs in common.
• Many organizations will have very different KPIs because goals are different.
Net Profit Margin Growth
Net Income / Sales
Sales Growth
Previous Period SalesRevenue / Current
Period Sales Revenue
Opportunities
Sales by Contact Method
Return on Investment
(Attributable Revenue – Campagin Investment) /
Campaign Investment
Conversion Metrics
# visits / # leads
and
# leads per channel / # wins
The Basics
1. Identify desired targets for each KPI2. Business data is assessed against target
on a regular basis3. Implement an executive dashboard that
highlights the current state of these KPIs4. The KPI dashboard must be easy to use.
How to Measure
Identify Your Data
Connect to a KPI Dashboard
Monitor Metrics in Real-Time
So what do I need to do again?• Pull data from from various sources• Format the data to make the metrics
mean something• Update real-time so decisions can be
made quickly• Put your KPIs in the hands of those
who need the information
What Systems Will Help With This?
There are several KPI dashboards available.
Many are difficult to deploy and expensive to use.
Nexxtep DashboardsWe use a cloud based dashboard platform called Klipfolio.
If you need help, we are ready!We can help you formulate your metrics out of your data and define your KPIs.
Nexxtep is a registered Klipfolio Partner.
For more information about our KPI services and a free Klipfolio trial, please visit:
ncare.com/kpis
