KPIs: running your business with the right indicators

How many quote requests did your website bring you last month? Was your latest campaign profitable? Without indicators, there is no way to answer with certainty. KPIs are there to turn gut feeling into informed decisions.

What is a KPI?

KPI stands for Key Performance Indicator. It is a figure that tells you whether you are reaching a goal. The important word is “key”: a KPI is not just any statistic, it is the one that really matters for your business.

Why are they essential?

• Measure the results of your actions, rather than relying on a hunch.
• Decide where to invest your time and budget.
• React quickly when a figure starts to slip.
• Rally your team around clear, shared goals.

Choosing the right KPIs: the SMART method

A good indicator stems from a goal that is Specific, Measurable, Achievable, Realistic and Time-bound. “Being more visible” cannot be measured; “doubling the number of website visits in six months” can.

Some examples of indicators

Sales

• revenue and margin per customer;
• quote-to-order conversion rate;
• average order value and repeat customer rate.

Website

• number of visits and where visitors come from;
• number of contact forms submitted;
• bounce rate on key pages.

Social media and communication

• engagement rate (reactions, comments, shares);
• community growth;
• cost per lead for a paid campaign.

Mistakes to avoid

• Tracking too many indicators: three to five well-chosen KPIs beat a fifty-line spreadsheet.
• Focusing on vanity metrics: a large number of followers is useless if it brings in no customers.
• Measuring without acting: an indicator is only worth something if it triggers a decision.

A simple, automated dashboard

Today, most of these figures can be collected automatically and brought together in a clear dashboard that updates without re-entering data. It is one of the services we offer: choosing the right indicators with you, then automating their tracking so all you have to do is read them.