There has always been a direct link between a business’s success and the quality and of its KPIs, and this is something that won’t change no matter what role or industry you operate in.
As we enter a new decade, this has never been truer. Expecting a different result from the same tired strategies should be the last thing you bring into a new decade, so start to implement some new KPIs today.
If you are looking to design long-term success for your business, consider implementing these five modern KPIs that will bolster your success and set you up for a profitable future.
Sustainability and ethical practices
As our social climate shifts towards sustainable and ethical practise, there is an overdue pressure for businesses to tighten their compliance in this space. This looks different for every entity, but your KPIs should be directed at choosing environmentally-conscious products and suppliers who abide by ethical standards.
While a noble sentiment, there are typically ambiguous metrics around what the business needs to implement, so be clear on what your contribution will be. Forward-thinking businesses have been known to include KPIs like ‘reduce carbon footprint by 25%’, ‘improve energy efficiency by July’ or ‘install sensor lighting throughout the office’.
Growth in acquisition and retention, respectively
When it comes to customer loyalty and revenue growth, businesses tend to think one-dimensionally rather than appreciating the difference between acquisition and retention. In the new year, design individual KPI targets that speak to growing your newly acquired customers/clients and your existing loyal ones. When you start to think about these markets as different revenue generators, you can start to learn about how they like to be communicated with and what their buying behaviour looks like.
Knowing, understanding and working towards a higher net promoter score
Do you know what your net promoter score (NPS) is, or do you have an understanding of what this is and why businesses hinge on this score? A businesses NPS will measure the sentiment and experience of your customers and predict growth based on that figure.
The NPS essentially extracts valuable data from your customers and addresses whether or not they would return or promote your business. There are a number of ways to roll out your NPS, like email, text message, one-on-one survey and focus group. Plan which channel will be most receptive to your audience.
Lower cost per conversion
Let’s get one thing straight, achieving a lower cost per conversion does not mean stopping or reducing your activity. It simply means putting some research and analysis into finding what solution gives you the lowest cost per conversion.
You might attend an industry event each year which is great for getting to know your customer but has a poor ROI. Could you achieve a greater cut through by producing and posting a video that features a how-to of ways to use your product instead? Ideally, you want to reach a broader audience, for a lower marketing/ad/sales spend. Time to get creative!
This should hardly be last on the list, but this is where most employers place it. Employee engagement is a KPI that you will want to focus a lot of attention. Your people are the vehicle that will get you and your business where you want to be, and a team that has poor morale will not make a significant impact on sales or customers.
Employee engagement can be measured by a company-wide survey, or you might prefer to start with department meetings led by an individual who does not directly manage that team. Here you will get authentic responses.