Key Performance Indicators ( KPIs ) are one of the most over-used and little understood terms in business development and management. They are too often taken to mean any advertising metric or data used to measure business performance. They enable you to manage, control and achieve desired business results.
What Exactly Are the Most Important Financial KPIs That Inform Business Strategy? Revenue Growth . Sales growth is one of the most basic barometers of success for any business. Income Sources. Revenue Concentration. Profitability Over Time. Working Capital.
Examples of Financial KPIs Growth in Revenue. Net Profit Margin. Gross Profit Margin. Operational Cash Flow. Current Accounts Receivables. Inventory Turnover. EBITDA.
Social Media Metrics and KPIs are values used by marketing and social media teams to measure the performance of social media campaigns. Social media teams often use a number of social media channels to increase impressions and reach of marketing messages.
A good marketing ROI is 5:1. A ratio over 5:1 is considered strong for most businesses, and a 10:1 ratio is exceptional. Achieving a ratio higher than 10:1 ratio is possible, but it shouldn’t be the expectation. Your target ratio is largely dependent on your cost structure and will vary depending on your industry.
The 19 sales KPIs of modern sales teams Monthly Sales Growth. Average Profit Margin. Monthly Sales Bookings. Sales Opportunities. Sales Target. Quote To Close Ratio. Average Purchase Value. Monthly Calls (or emails) Per Sales Rep.
Let’s break down the 11 most-used types of KPIs: Quantitative Indicators. Quantitative indicators are the most straight-forward of KPIs. Qualitative Indicators. Leading Indicators . Lagging Indicators. Input Indicators. Process Indicators. Output Indicators. Practical Indicators.
Key Performance Indicator ( KPI ) Definition A Key Performance Indicator is a measurable value that demonstrates how effectively a company is achieving key business objectives. Organizations use KPIs at multiple levels to evaluate their success at reaching targets.
A KPI should be simple, straightforward and easy to measure. Business analytics expert Jay Liebowitz says that an effective KPI is one that “prompts decisions, not additional questions.” For example, “How many customers did we add this quarter?” is clear and simple.
SMART stands for = Specific, Measurable, Attainable, Relevant, and Time-Bound. The key ingredients for ‘good’ definitions of Key Performance Indicators ( KPI ) and its goals. At KPI Library we believe you should add “Explainable” and “Relative” to these ingredients, making it SMARTER!
An HR key performance indicator or metric is a measurable value that helps in tracking pre-defined organizational goals of human resources management. HR departments use KPIs to optimize recruiting processes, employee engagement, turnover rates, training costs, etc.
As a rule, we generally say you should have 2-3 KPIs per objective, to ensure a variety of measures without overwhelming the picture. The reason we use a minimum of 2 KPIs as a rule, is because we believe each business objective should have at least 1 leading indicator and 1 lagging indicator.
Social Media KPIs for Reach Follower Count. Perhaps the most obvious way to determine whether you’re reaching enough people is to look at how many followers and fans you have on each platform. Impressions. Impressions are a complicated metric to measure. Web Traffic. Share of Voice.
ROI stands for “return on investment.” Social media ROI represents the return on investment from your social media activities. Generally speaking, social media ROI is a measure of all social media actions that create value, divided by the investment you made to achieve those actions.
Search Engine Optimization ( SEO ) KPIs are values used by marketing teams to measure the performance of their website for organic search results. This analysis can help determine top performing pages, top converting keywords, and areas of your website that need to be optimized for search.