How Do You Set Key Performance Indicators?
By making use of KPIs, you will reap aÂ whole new set of benefits that you canâ€™t have under a reactive goal system.
Gain mastery over your finances
Key performance indicators include goals likeÂ average dollars per sale, profit margins, and the number of times clients buy from you.Â Being able to increase these metrics requires you to understand the full nature of your cash flow and product margins, as well as your balance sheet and income statement.
Become more receptive to your customers
A common key performance indicator is a satisfaction index – how much did customers enjoy doing business with you?Â Turning one-time customers into repeat customers is one of the most powerful goals you can set.Â Your sales will increase, you will hire additional employees, your customer satisfaction goes up, and your overall profits will go up by a significant amount.
Your team will grow with you
Imagine a wave at a beach.Â The waves occur because the water moves in cohesion, not disorganized chaos.Â Your teamâ€™s flow works much the same way.Â Without a clear set of directions and goals, your team will not be able to contribute value to the business. Consequently, you wonâ€™t enjoy the benefits of a productive team.
When you create key performance indicators, you set a challenge for your team â€“ including yourself.Â You set the course of your ship, and your employees will respond accordingly. If there are no plans and goals, there is no direction.
Stick to these goals and exceed them, and youâ€™ll be amazed at the transformation your bottom line will experience. If you need help setting key performance indicators for your business, contact local Vancouver Business Coach Rob Carol.