KPIs: what are they, what are the main ones and how to use them in my business?

KPIs: what are they, what are the main ones and how can to use them in my business?

KPIs can vary from one company to another, depending on their segment, size and the objective they intend to achieve. Visit the website to read the full article!

From the English Key-Performance Indicator, KPIs are essential indicators for achieving specific company objectives that help establish goals to be completed by the team and provide guidelines and directions for evaluating progress… This way, it can contribute to the decision-making process of employees and departments.

Used to measure the efficiency and effectiveness with which a company achieves its business objectives, KPIs are essential measurable values ​​for those who want to achieve goals and are divided into high-level and low-level KPIs: high-level ones focus mainly on the performance of the organization on a macro level, while those at a low-level focus on specific sectors, such as marketing, sales, HR, among others.

An organization’s KPIs need to be objective, measurable, verifiable and have added value. In addition, the professionals involved must communicate clearly, reach a consensus on the established objectives and demonstrate total commitment to successful implementation.

Discover the main KPIs used in an organization and learn how to implement them in practice:

With data-driven marketing and automation tools increasingly increasing when contributing information about consumers and their behaviours, KPIs are also gaining ground as relevant tools in presenting an organization’s results in a simple, concise and tangible way. Through them, it is possible to evaluate the business performance from a macro and micro perspective.

Now that we know the definition and relevance of KPIs understand below what are the leading vital indicators to be considered in an organization:

1. Quality KPIs: essential for measuring efficiency in processes, quality KPIs are used to assess customer satisfaction with the company’s products and services. An example of a quality KPI is the average score in a satisfaction survey, which serves as a thermometer to determine how customers evaluate the service or product/service.
2. Productivity KPIs: directly related to the needs and demands for resources in delivering the organization’s products or services, productivity KPIs are crucial allies in limiting costs and optimizing the use of inputs. The time spent manufacturing a product is an excellent example of a productivity KPI.
3. Capacity KPIs are used to measure the company’s delivery capacity in volume of products and services, being essential when determining how much the organization may have grown or contracted in production volume. When we measure the volume of products and services from an employee, we are evaluating an essential item.
4. Strategic KPIs: these key indicators are mainly related to the goals established in strategic planning. They show how far the company needs to achieve its objective and enable the implementation of action plans, if necessary. In this case, an organization’s most critical strategic KPIs are its gross revenue, market share, and ROI.

As important as knowing an organization’s main KPIs is knowing how to apply them, so you must follow the five steps below to implement KPIs efficiently in your organization:

1. Define your business objectives;
2. Establish tangible goals to be achieved;
3. Establish concrete plans to be performed;
4. Select the KPIs to be used and those responsible for collecting data;
5. Inform the KPIs of the employees involved and monitor their progress.

KPIs are fundamental to the success of your organization!

As we have seen throughout the article, KPIs are essential tools for the organization’s success and provide a precise and clear diagnosis of how the company should position itself in the market, predicting some behaviours and preparing your business for the challenges that will undoubtedly emerge in an increasingly competitive, complex, dynamic and globalized world.

Within digital marketing, there are a series of specific metrics and KPIs essential for leveraging your business, which use platforms such as Google Analytics, a platform used to provide an overview of visits to your website, the profile of your leads and their behaviours.

Quality SMI is a digital marketing agency that bases its work on KPIs. This way, our clients can achieve their goals with SEO, Google Ads and efficient social media management tools.

Discover our services and understand how we can help your company grow online!