Do You Know What KPIs Are?

Key Performance Indicators, or KPIs, are benchmarks with which you measure the success of your business. And while there are thousands of ways to measure things like reach and revenue, there are 3 essential KPIs that every company, big and small, needs to pay attention to.


Video Transcription

Alright, so we talked about goal-setting in a previous Above the Noise, but we didn’t talk about KPIs. A KPI stands for a key performance index. It’s really what you use to measure yourself to keep you on track to hitting that goal you set and just like in the goal-setting video I talked about using the SMART acronym I would encourage you to do the same for your KPIs. You want them to be specific, measurable, attainable. You want them to be relevant and then time bound.

But in today’s video I want to give you guys three KPIs that every business, doesn’t matter what industry you’re in, every business should be measuring their business monthly on these KPIs.

Number one.

The first one is, “What is your sales goal?” So you have this revenue goal that you want to get to at the end of the year, what is the sales KPI that you need monthly to keep you on track to hitting that goal?

Number two.

The second KPI that you should be measuring is your conversion rate. So now you know how many sales you need, what’s your conversion rate look like? How many leads do you need to hit that sales quota? How many causes are gonna take to get a lead on the phone? How many calls does it take to book an appointment? How many appointments will you need to actually close a deal? You need to be measuring your conversion rate.

Number three.

And then last but not least the third KPI that every business should be measuring is the sales profitability. It doesn’t matter if you’re hitting your sales goal if you’re not profitable so you need to be measuring your sales profitability definitely monthly if not more, but you need to know how much did it cost you to generate that lead? What did it cost in time to make those phone calls either yourself or for your staff? What did it cost for appointment setting? You know you have material at the appointment you’re using. What did that cost you? And then ultimately, what was your net-profit off of that sale? You need to be measuring sales profitability monthly.

The takeaway.

So there you have it guys there are three KPIs that any business should be measuring. If you liked these tips, subscribe to our YouTube channel. Please comment below, let us know KPIs that you use to keep you on track. Check us out on Facebook and Instagram, but most importantly take action on this today!

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