Business KPI Goal helps to Improve Business Performance
Business KPI Goals or business key performance indicators setting and tracking them on a regular basis can help to improve digital or online business performance.
What is Key Performance Indicators (KPI)
Key Performance Indicators, or KPIs, are quantifiable measurements used to focus attention on the metrics most important to meet business goals.
Key Performance Indicators or KPI use to evaluate the effectiveness of business processes to achieve business goals.
How to construct Business KPI Goals:
As we already know that KPI should be measurable, practical and achievable. Also business KPI goals give clear direction to any business.
Business Type – Amit owns a chain of fitness centers called ‘Fit Gym’.
Business Goal – He needs to make sure that he has enough customers to keep the business growing.
Business KPI Goals –
Bikas wants to get inquiries of at least 50 new students per month. This would be his goal. To help achieve this goal, Bikas now needs to set KPIs that will measure the efforts his staff make towards meeting this target.
Here are the KPIs Bikas has identified for his sales staff, based on actions that can help improve the membership inquiry rate.
- Reach out to 20 prospective students per day
- Respond to all online queries on social media and email within 15 minutes of receiving them during working hours
- Renew or upsell 8 existing students per month.
How to analysis Business KPI Goal Performance:
Meeting Target – If the sales team able to match the expected target aginst these business KPI goals or not.
Additional Training – Business owners can identify who needs special training.
Reaching Target – KPI can be anything that gets you closer to achieving your goal. From sales calls to posts on social media, email list sign-ups to customer satisfaction ratings.
Make sure you choose the KPI that best fits your needs.
Things to keep in mind creating business KPI goals:
KPIs should be specific, measurable, attainable, relevant and time-bound. Try creating your own KPIs and see if you can answer the following
Is this KPI specific enough?
Can it be measured?
Can employees attain this?
How relevant is it to the wider business objective?
When is it due to being delivered or carried out?
Business KPI goals could be to increase sales figures by x% compared to last year. Increasing sales is key for business growth, which would be an overall business objective, and comparing year on year makes it timely.
Flexible Business KPI Goals:
Review and understand the KPI regular basis. If the sales team struggling to reach customers withing 15 min due to the volume of other work, he must hire a few more people to get work done.
Don’t just set business KPI goals if they are not specific, measurable, attainable, relevant and long term vision. So take some time now to think about the KPIs you would set, and how you could measure these to get closer to your goals.
Recap of this lesson:
Using available data and metrics to evaluate digital marketing campaign for any business performance online.
- Why setting business KPI goal are important to online businesses
- How to construct a business KPI goal using the SMART framework
- How to analyse data gathered to help improve online marketing efforts.
Digital Marketing assignment of this lesson:
Bikas has written some KPIs to achieve the business goal of “improving overall client satisfaction”. review these four KPIs.
which do you think fits the criteria of being specific, measurable, attainable, relevant and time-bound?
Select the right answer and comment below.
Ensure 80% of clients use the gym’s online system to book personal training appointments
Increase how much money customers spend in the gym’s juice bar
A score of 85% or more in the annual survey for the question ‘Would you recommend this gym to a friend?
Ensure 90% of new gym members book an induction session within the first two weeks of joining