Using a tool such as your accounting software, you should analyze your cash flow, balance sheet and income statement to obtain your financial metrics. Just take a look at any of these metrics to see if your business is doing well from a financial point of view, which means that you're generating revenue and managing your finances wisely. If you plan to steer your company in a new direction of growth or arouse the interest of potential investors, you will present these financial KPIs to them as proof of the value of the investment. From a business point of view, they are only next to financial metrics on the importance scale.
Marketing metrics show the numbers to tell you if your most recent marketing campaigns are offering the rates you set out to achieve. The right marketing software tools should provide you with the values, for example, of your new approach to content by including your latest multi-channel marketing campaigns. For a website, the conversion rate is the total number of conversions out of the total number of sessions in a given time. If your site registers one million sessions every month and, as a result, receives 150,000 orders, your conversion rate is 15%.To help you win the conversion game, you might consider investing in conversion rate optimization software.
You've managed to convert a visitor to your website into a buyer, but does the cost of doing so justify the whole process? If spending 25,000 USD on a marketing campaign got 25,000 customers, then you spent a fixed amount of 1 USD for each of them. If each of them generated an average purchase of 100 USD over the same period, then you've done quite well considering the low marketing investment you've made for each customer you managed to capture. To obtain a CES, simply calculate the average of the scores, for example, from 0 to 10, that your customers give you based on the effort it took them to resolve their queries. To calculate your sales per square foot, just divide your total sales by the total square footage of your store. You may not have to resort to a space of 7 to 11 people and a product design, but spatial knowledge allows you to know what your store is for.
The 15 Best ERP Systems for Your Business. When creating a Business Intelligence dashboard, it's important that you select the right KPIs for the audience that sees the dashboard. As KPIs filter throughout the organization, they must capture the attention of employees to ensure that they are all moving together in the right direction and bringing value to the company. The race to more meaningful use of data is marked by the use of artificial intelligence, as 38 percent of companies have already invested in AI.
Operating costs are not an accurate KPI and are not likely to be as useful in the sense of making operational decisions. A final step in using KPIs to boost performance is to create dashboards with all the business intelligence information accessible in one place. The real power of KPIs lies in their ability to provide management with the quantitative data it needs to make effective data-based decisions. When organizations take action based on what they have learned from their KPIs, this is the point at which positive results can be seen.
If you already have reports, dashboards, or business intelligence systems, review them first to see how they align with the KPIs you've chosen. For a KPI to work, it is necessary to be able to use it as a basis for comparison for planning and knowledge of business intelligence. BI panels can offer companies many benefits, from higher revenues to more effective organizational processes. It doesn't make sense to select a KPI for your company if you can't get the data that supports it, either because the application is too expensive or because you don't have the resources to implement it.
Next, we'll also present some examples of Business Intelligence KPIs, to better illustrate how KPIs adapt to your operations. It's essential to remember that KPIs should be used as part of a global business intelligence strategy and not independently.