Downloaded 85 times
More Related Content
Similar to Key Performance Indicators
Key Performance Indicators
- 1. Matthew Hardesty |GoldenComm | 474 E. 17th St, Suite 103, Costa Mesa, CA 92627 Key Performance Indicators Definition, Purpose, & Considerations
- 2. Matthew Hardesty |GoldenComm | 474 E. 17th St, Suite 103, Costa Mesa, CA 92627 What are Key Performance Indicators (KPIs)? KPIs are a set of calculated values used to measure success. The data gathered from those measurements helps give managers insight into business performance and progress.
- 3. Matthew Hardesty |GoldenComm | 474 E. 17th St, Suite 103, Costa Mesa, CA 92627 What’s the benefit to a business? • KPIs offer an objective view of business performance for managers to review (instead of relying on subjective reports or perceptions of success). • Measure success of programs • Quickly link financial investment with strategy • Conduct performance reviews • Monitor effects of operational workflow adjustments • Translate business goals into visible & actionable metrics Daily Operations Management Strategic Planning Business Goal Business Goal Executives, owners, board members Managers External Operations (customer service, sales) Internal Operations (manufacturing, supply-chain) Company Operations (accounting, HR)
- 4. Matthew Hardesty |GoldenComm | 474 E. 17th St, Suite 103, Costa Mesa, CA 92627 How are they obtained/triggered? • Relevant KPIs can be discovered by observing any occurrence where an action between a responsible party and a dependency intersects with a company’s strategic goal Goal Dependency Responsible Party
- 5. Matthew Hardesty |GoldenComm | 474 E. 17th St, Suite 103, Costa Mesa, CA 92627 Example • Company Goal: Measure frequency of orders in excess of $700 in Orange County each month • Responsible Party: Sales rep • Dependency: Customer • Action: Sales rep makes a sale that totals $833 to a customer located in Costa Mesa. Company Metric Order >$700 in Orange County CustomerSales Rep Dateofsale KPI
- 6. Matthew Hardesty |GoldenComm | 474 E. 17th St, Suite 103, Costa Mesa, CA 92627 Considerations for developing KPIs Data Capital What data is required to make measurements? Does the data and data structure exist in a way that supports measurement? How will new data be acquired and documented? Technology Capital What applications and tools are in place (CRM, CMS, BI Tools, etc…) Is the current technology sufficient to store and manipulate data? Is new development required to enable measurement or progress? If so, does the ROI make sense? Intellectual Capital How can the skills of business employees affect the outcome of the results? Should the actions of customers or third parties be considered? How much additional time, if any, should be spent developing new processes, training, reporting, etc…? Defined Business Goal
- 7. Matthew Hardesty |GoldenComm | 474 E. 17th St, Suite 103, Costa Mesa, CA 92627 Considerations for developing KPIs Defined Business Goal What’s measured? How is it measured? Who’s responsible?
- 8. Matthew Hardesty |GoldenComm | 474 E. 17th St, Suite 103, Costa Mesa, CA 92627 KPI Analysis in the Business Process Define Business Goal Strategy Planning & KPI Selection Strategy Implementation Measurement, Evaluation, and Strategy Adjustment
- 9. Matthew Hardesty |GoldenComm | 474 E. 17th St, Suite 103, Costa Mesa, CA 92627 Best practice for defining relevant KPIs • Suitable for the business • Allows for chronological comparison (measure of progress over time) • Must have responsible party • S.M.A.R.T. • Specific • Measureable • Attainable • Relevant • Time-bound
- 10. Matthew Hardesty |GoldenComm | 474 E. 17th St, Suite 103, Costa Mesa, CA 92627 Three steps to measure Once a relevant goal and KPI have been selected, 1. Develop a baseline 2. Record statistically adequate amount of relevant data 3. Compare results with baseline
- 11. Matthew Hardesty |GoldenComm | 474 E. 17th St, Suite 103, Costa Mesa, CA 92627 Common KPIs for eCommerce • Weekly, monthly, quarterly, annual sales • Conversion rate • Shopping cart abandonment rate • New vs. returning customers • Number and average rating of product reviews • Product affinity (what’s purchased together) • Average margin • Average order value • Customer acquisition cost
- 12. Matthew Hardesty |GoldenComm | 474 E. 17th St, Suite 103, Costa Mesa, CA 92627 Common KPIs for Web Marketing • Site traffic • Unique vs. returning visitors • Time spent on site • Page views per visit • Traffic source • Geographic location • Bounce rates • Newsletter subscribers • Social metrics • New followers, fans, shares, likes • Paid search traffic volume • Caller source & volume (paid vs. organic)
- 13. Matthew Hardesty |GoldenComm | 474 E. 17th St, Suite 103, Costa Mesa, CA 92627 Common KPIs for LeadGen Sites • ROI • (Attributable Revenue – Campaign Investment) / (Campaign Investment) • % Revenue from SEM • Revenue from SEM campaigns / overall revenue • Email engagement score • # of new leads / # of emails • Social interactions • # of social interactions / period of time • Traffic source volume • # of visitors for each source • Cost per lead • Total cost of campaign / # of leads generated • Conversion ratio • # of leads per channel / # of wins • Actions / Goals • # of users that perform a desired activity when landing on the site (per channel) / # of users who land on the site (per channel)
- 14. Matthew Hardesty |GoldenComm | 474 E. 17th St, Suite 103, Costa Mesa, CA 92627 Questions?