What do you mean by KPI in business ?
A Key Performance Indicator is a measurable value that demonstrates how effectively a company is achieving key business objectives.
Organizations use KPIs at multiple levels to evaluate their success at reaching targets.
High-level KPIs may focus on the overall performance of the business, while low-level KPIs may focus on processes in departments such as sales, marketing, HR, support, and others.
How do we define its Importance of measuring it ?
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’ve achieved your outcome?
How often will you review progress towards the outcome?
What is a SMART KPI ?
Specific, Measurable, Attainable, Relevant, Time-bound
In other words :
Is your objective Specific?
Can you Measure progress towards that goal?
Is the goal realistically Attainable?
How Relevant is the goal to your organization?
What is the Time-frame for achieving this goal?
What is a SMART KPI?
Specific, Measurable, Attainable, Relevant, Time-bound.
Which KPI works best for Sales & Marketing
Cost per Lead (CPL) - cost-effectiveness of your marketing campaigns at generating new sales leads.
Marketing Qualified Leads (MQLs) - Identifying qualified leads readiness for sales, extracting the effective points in the marketing and sales pipeline.
Sales Qualified Leads (SQLs)- number of potential customers who become sales opportunities in the sales pipeline effectiveness
Opportunity-to-Win Ratio - Ratio provides you with an easy to comprehend value to determine your rate of success in converting qualified leads into closed sales.
Cost per Customer Acquisition - costs of each step involved in convincing a potential customer to close the sale.
Marketing ROI - generated by a specific marketing campaign, as compared to the costs of running the campaign.
Customer Retention - business’s effectiveness in retaining customers over the long term. The adage states that engaging new customers cost more than engaging current customers;
Sales Revenue - measure the progress of your business in generating sales revenue. With several points of data, you can determine your business’s growth trends and projections. top-level view
Prepared By -
Roshni Nag
Advisor
Date: 19-05-2021
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