The trouble we face with many companies is that, there are thousands of KPIs to choose from and most cases business choose to use the set of KPI that have to do nothing to do with their enterprise.
In doing so by choosing the wrong one, then such organizations are measuring something that doesn’t align with their goals.
This is where we as a company come in by selecting the right KPIs for your organization?
As a business we have the best way to accomplish this as we have added extensive research and understanding some of the most important KPIs numerous businesses require.
This way, your organization have a better understanding of which ones are specific to industry and which ones will be of no benefit. These include:
1. Profit: This goes without saying, but it is still important to note, as this is one of the most important performance indicators out there. We analyze both gross and net profit margin to better understand how successful your organization is at generating a high return.
2. Cost: Measure cost effectiveness and we find the best ways to reduce and manage your costs.
3. LOB Revenue Vs. Target: This is a comparison between your actual revenue and your projected revenue. Charting and analyzing the discrepancies between these two numbers will help you identify how your department is performing.
4. Cost Of Goods Sold: By tallying all production costs for the product your company is selling, we can get a better idea of both what your product markup should look like and what your actual profit margin is. This is key in determining how to outsell your competition.
5. Day Sales Outstanding (DSO): We take your accounts receivable and divide them by the number of total credit sales. Then we take that number and multiply it by the number of days in the timeframe you are examining. In doing so we’ve just come up with your DSO number! The lower the number, the better your organization is doing at collecting accounts receivable. We will also run this formula every month, quarter, or year to see how you are improving.
6. Sales By Region: Through analyzing which regions are meeting sales objectives, we can provide better feedback for regions that are underperforming.
7. LOB Expenses vs. Budget: We compare your actual overhead with your forecast budget. We try to understand where you deviated from your plan so we can help you create a more effective departmental budget in the future.
8. Customer Lifetime Value (CLV): Minimizing cost isn’t the only (or the best) way to optimize your customer acquisition. With CLV we help you look at the value your organization is getting from a long-term customer relationship. We use this performance indicator to narrow down which channel helps you gain the best customers for the best price.
9. Customer Acquisition Cost (CAC): We divide your total acquisition costs by the number of new customers in the time frame you’re examining. In doing so we find your CAC. We considered this as one of the most important metrics in e-commerce because it can help us evaluate how cost effective your marketing campaigns have been.
10. Customer Satisfaction & Retention: As Globaldyne we consider this a simple task: The trick is to make the customer happy and they will continue to be your customer. Many firms argue, however, that this is more for shareholder value than it is for the customers themselves. We can use multiple performance indicators to measure CSR, including customer satisfaction scores and percentage of your customers repeating a purchase.
11. Net Promoter Score (NPS): For us its finding out your NPS is one of the best ways to indicate long-term company growth. We determine your NPS score, send out quarterly surveys to your customers to see how likely it is that they’ll recommend your organization to someone they know. Then we establish a baseline with your first survey and put measures in place that will help those numbers grow quarter to quarter.
12. Number Of Customers: Similar to profit, this performance indicator is fairly straightforward. We determine the number of customers you’ve gained and lost, we can further understand whether or not you are meeting your customers’ needs.
13. Customer Support Tickets: We analyze the number of new tickets, the number of resolved tickets, and resolution time will become the best customer service department in your industry
14. Percentage Of Product Defects: We take the number of defective units and divide it by the total number of units produced in the time frame you’re examining. This will give us the percentage of defective products. Clearly, the lower you can get this number, the better.
15. LOB Efficiency Measure: We measure efficiency differently in every industry. Let’s use the manufacturing industry as an example. We can measure your organization’s efficiency by analyzing how many units you have produced every hour, and what percentage of time your plant was up and running.
16. Employee Turnover Rate (ETR): For us to arrive to your ETR, we take the number of employees who have departed the company and divide it by the average number of employees. If we get a high ETR in your department, Globaldyne will then spend some time examining your workplace culture, employment packages, and work environment.
17. Percentage Of Response To Open Positions: We examine whether you have a high percentage of qualified applicants apply for your open job positions, the results tell us if we know you are doing a good job maximizing exposure to the right job seekers. In this manner it leads to an increase in interviewees, as well.
18. Employee Satisfaction: Happy employees are going to work harder—it’s as simple as that. With us measuring your employee satisfaction through our surveys and other related metrics it is vital for us to determine whether your department and organization is healthy or not.
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