In the data-dominated world we are living in, having the right KPIs or Key Performance Indicators that really drives the business and focus on critical business processes are fundamentally important.
KPIs have become the way of measuring success and focusing on what’s really important From increasing sales to acquiring new customers, you might have quite a few goals as a business. Surely, you can only improve on things you can measure.
Defining Key Performance Indicators (KPIs)
When it comes to making good, data-driven decisions, defining the most appropriate KPIs is fundamentally important. You need to define your goals in specific and measurable terms. It might be the number of conversions through your AdWords’ campaign or it can be a certain number of sales by the third quarter.
If you are looking to implement Business Intelligence (BI) and analytics, it is all the more important to define the right KPIs. In fact, BI tools can make your job easier. Here is how you go about it:
1. Understand Pain Points
First up, you need to start with your company’s weaknesses. Your team might not be able to retain customers or you might have difficulty in coming up with innovative products.
Make sure you isolate these pain points before moving forward, and see what you can measure
2. Outline a Few KPIs
Outline 7 to 10 different KPIs, with a specific metric for each one is s the philosophy you want to be applying when defining KPIs.
For instance, you might want to enhance brand awareness through social media. This would mean that you would need social media records of the previous year. Last year’s data will serve to help you benchmark – something to improve upon.
3. Be Data-Smart
There is no doubt about the fact the decisions will have to be made in line with data. You need to single out your decisions that are not based on data.
Take all the KPIs you have in mind and put them through this test. Break all of them down into data -based statements.
Also, specify the data sources you will be using or those you will need to develop and how you will be preparing and managing data. For instance, for your marketing campaigns, your data source could be from a be the Google Analytics platform with cloud-based data
4. Represent Them in Simple and Accurate Form
Now that you have defined KPIs and have outlined data sources, it’s time to look for a way to represent these KPIs in an effective form.
BI tools have reader-friendly and intuitive dashboards that can help you do just that. Not only do they represent data in a compelling manner, they also have analytical features that can make life a lot easier for you for generating KPI reports and dashboards
We at Centelli provide top-notch KPI framework consultancy. With a team of outstanding data analysts, we help businesses identify, define and measure KPIs in a seamless fashion.