What do successful businesses do differently? They measure Key Performance Indicators (KPIs) regularly to keep a check on the health of their business.
Want to improve your sales and revenue in a strategic and time-sensitive manner? Here are some Key Performance Indicators you may want to monitor.
What are Key Performance Indicators (KPI)?
KPIs are like milestones to help you measure how far you have traveled on your entrepreneurial journey. They are quantifiable metrics that help you understand the current standing of your online business.
KPIs help you gain insight into what’s working for you and help you identify sectors that have scope for improvement to increase your overall revenue. They also help you expand your customer base and improve engagement on your site.
KPIs give you insights from your past and present performance and also help you predict future performance.
How do Key Performance Indicators help your business?
- Customer acquisition: Improve conversions by converting visitors into paying customers.
- Customer retention: Improve the average order of sales, by encouraging customers to spend more on your site.
- Grow organically: Reduce cost per acquisition by decreasing spends on advertising and marketing and by focusing on the overall user experience.
Types of Performance Indicators for your business:
1. Sales:
Setting KPIs for sales can help you measure how your business is doing in terms of conversions and overall revenue generation. Depending on your channel of sales, specific time periods you want to keep tracking the average order size, conversion rates, and the ratio of your new vs recurring customers.
2. Marketing:
Mastering your marketing KPIs can have a direct impact on your sales. This will also help you understand the overall behavior of your customer and predict their future spends. Some of the indicators to measure are the traffic you are attracting on your site, the average amount of time spent per visit, and the number of page views per visit.
3. Customer Service:
To keep a check on customer service quality, track how fast you register, track and resolve customer queries. You can measure a positive customer experience by how fast you resolve their problems regarding queries and refunds. Try monitoring the amount of time taken to respond and resolve customer queries and keeping a tab on the number of active disputes.
4. Project Management:
Your team is your biggest asset. Tracking their performance and analyzing their ability to complete set tasks is important.
This is an internal measurement for all teams depending on their goals, processes, and workflows. Some metrics to look at in this domain are the number of hours worked, the budget allocated for each task, and the returns on investment for each project.
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