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KPIs IN BUSINESS

 


KPIs IN BUSINESS:  

KPI stands for Key Performance Indicator which means a quantifiable measure of performance over time for a specific objective. KPIs are not Business metrics.

KPIs are the key target you should track to make the most to make the impact on your strategic business outcomes. Therefore, KPIs support your business strategies to reach  your business goals outcomes and help your team to focus on what is important. Picture this; A business is aiming at acquiring new customers of older age for their new products. Therefore, a business conducts a promotion discount to each product purchased by customer of older age. There, KPI is customer of older age.

Are the KPIs important ? Yes.

You need KPIs in your business to support team on achieving the core business goals within time and budget. Some of benefits KPIs can offer your business;

Keep your team aligned

When measuring any project success in your business; KPIs keep team moving in one direction but when you don’t have KPIs, everyone in a team will have his or her own way of measuring the performance.

Making adjustments easily

Once you have KPIs in your business, you can easily see successes and failures too; so you can put much efforts on what is working and less efforts on what is not working. For example, may be you have entered the world of digital marketing for the first time and want to see if is helpful in your business or not. You decide to use website and social medias platforms. You choose KPI to be traffics. After a certain time you discover that in website there is more traffic than social media. Hence increase efforts on website and release efforts on social media platforms.

How can you define KPIs ?

Many people fail to define KPIs clearly simply because they relate to the business metrics. But difference between KPIs and metrics is that; metrics focus on daily business activities while KPIs focus on critical or core business goals. You need these steps when defining KPIs:

·        -What is your desired outcome ?

·        -Why does this outcome matter ?

·        -How are you going to measure progress ?

·        -How can you influence the outcome ?

·        -Who is responsible for the business outcome ?

·        -How will you know you have achieved your outcome ?

·        -How often will you review progress towards the outcome ?




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