What are KPIs?
KPIs are Key Performance Indicators which are a set of quantifiable measurements used to gauge a company’s overall long-term performance.
There are 5 Key Performance Indicators.
- Revenue growth.
- Revenue per client.
- Profit margin.
- Client retention rate.
- Customer satisfaction.
KPIs can be for a business, manager, employee, financial, productivity, and marketing, and used in all areas of a business and managing of a team.
There are 5 Important characteristics to be effective
- Monitor Company Health
- Measure Progress
- Make adjustments and stay on track
- Problem-solve and tackle opportunities
- To analyse patterns over time
KPIs are important because they help you understand the performance of your business. It is in decline or is it a profitable business?
One common mistake companies make is that when they first start measuring their KPIs, they try to measure too much.