Key metrics, also known as key performance indicators (“KPIs”) are quantifiable measures designed to assist a company in achieving its goals.
As you would expect, different industries require different metrics; for example, retail operations may necessitate a range of inventory based metrics whereas a service offering would be more focused on KPIs such as number of customers, customer service etc.
KPIs need to be consistent, communicated and actionable. For a company to utilise KPIs successfully, the KPIs need to be clearly phrased in actionable terms, e.g. “make a minimum of five new customer contacts per week.”
We’ve listed some of the many possible choices for measurement with KPIs below:
• Customer retention rate
• Sales contacts
• Production per employee
• Hiring and training costs per employee
• Inventory turnover rate
• Advertising source of new customers
• Operating profit margin
• Customer satisfaction
I hope you found that useful. I have a KPI for this article of 20 views… I will report back on my performance!
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