What are KPI's and how do you track them
KPIs, or Key Performance Indicators, are metrics used to measure progress towards a specific goal. They provide an indication of how well the business is performing and can be used to track progress over time. KPIs come in many forms, but generally fall into three categories: financial, operational and customer-focused. Financial KPIs measure the financial performance of a company; operational KPIs evaluate internal operations; and customer-focused KPIs look at customer satisfaction levels.
It’s important to establish clear goals that you want to track before setting up your KPIs. You should also determine what data sources will be used to track each KPI and set up regular methods for collecting data on each metric. Once all of this is in place, you can start tracking your KPIs. To make the most of your data, it’s important to assess and analyze it regularly. This could mean creating visualizations or running tests to find correlations between different KPIs. By regularly reviewing and analyzing your data, you can identify trends and areas for improvement that may not have been obvious before.
Overall, KPIs are a great way to track progress towards specific goals. They provide an easy-to-understand snapshot of how well the business is performing and allow you to adjust strategies as needed. By understanding what metrics to track and taking time to review them regularly, businesses can ensure they are always heading in the right direction.