This document outlines 5 key performance indicators (KPIs) for a business and how increasing each KPI by standard percentages of 10%, 15%, and 20% impacts overall gross profit and the percentage growth of gross profit. The 5 KPIs are: total potential buyers contacted, conversion rate of contacts to customers, average number of purchases per customer, average purchase amount per sale, and profit percentage per sale. Increasing the KPIs, especially by 15-20%, leads to substantial increases in gross profit of over 100%.

1. 5 KPI's Standard 10.00% 15.00% 20.00%
100,000 110,000 115,000 120,000
x 5% 5.50% 5.75% 6.00%
= 5000 6050 6613 7200
x 25 28 29 30
4) Average purchase amount per sale over one year x 50 55 58 60
Total amount of overall sales for the year = 6,250,000 9,150,625 10,931,289 12,960,000
x 60% 66.00% 69.00% 72.00%
Gross Profit = 3,750,000 6,039,413 7,542,589 9,331,200
Gross Profit after % Increase in KPI's 2,289,413 3,792,589 5,581,200
% Profit Growth after KPI Increase 61.05% 101.14% 148.83%
15% increase in KPI's is equivalent to a 100% profit increase Increase Key Performance Indicators by %
1) Total number potential buyers contacted – or that
contacted the business – over the course of a year -
“potentials” or “prospects.”
2) Percentage of people that actually bought. If 10
people walk through a store and three people buy,
that store’s conversion rate of 3 out of 10, or 30%, for
Total customers, determined by multiplying the total
number of "prospects" by conversion rate.
3) Number of purchases the average customer will
make over the course of a year.
5) Profit percentage of each and every sale. Simply
put, if a business sells something for $100, and profit
was $25, the profit margin is 25%.