We’ve all heard of, or even developed a few Key Performance Indicators (KPI) for our businesses or our clients businesses. Yes, we identify those 3-6 KPI’s that indicate if we are heading in the correct direction or not! Have you included these? They can be significant pointers to the success and health of ones business.
A) Net Promoter Score (NPS) – an NPS score or rating indicates or predicts future revenues and possible growth. You normally ask surveys of prospects or clients to achieve/determine your NPS. The NPS is a compilation of a number of those survey responses so it tends to point in a unbiased direction.
B) N-CAR or New Customer Acquisition Rate: This is your measurement of new customer acquisitions and the related costs associated to signing on a new customer. What is the correct NCAR for your business?
C) ACS – Average Customer Sale – This is easy to measure but many clients have difficulty tracking the change of the ACS and what that means to the business. A decreasing ACS indicates that your likely profit margins will also decrease.
D) Service Issues/Cases: Measuring the number of service issues logged in a monthly or quarterly period can help you understand product quality and reliability. The product quality and/or reliability can predict future sales and revenues. Too many cases indicates possible product quality or environment changes, too few may point to less units sold during the period. A significant change in the number of cases is indicating something significant to your business and/or product. Look to determine the message.
As you can see, these KPI measurements are to be used to indicate change not just as a value. It is the change from period to period that provides your leadership with the fuel needed to direct success. TeamAutomation provides the tools and systems to assist your team in achieving success by developing and measuring these facts.