Performance indicators or KPIs are indicators used to measure the performance of a company. It is a process of setting, perform monitoring and and analyze specific aspects that generates information that contributes to achieve the goals of the company.
The work routine of the companies have been changing constantly,especially in the present scenario. That is why the managing processes have to change as well. Much more than evaluating the employee by controlling his workday, management by indicators focuses on the performance and the achievements of the goals of the company.
Much more than evaluating the employee by controlling his workday, management by indicators focuses on the performance and the achievement of the goals of the company.
As an alternative to develop better communication, measure team performance and find strategies in an innovative way, many leaders found solutions for these and other challenges.
What are performance indicators?
Performance indicators or KPIs are indicators used to measure the performance of a company. It is a process of setting, perform monitoring and analyzing specific aspects that generates information that contributes to achieve the goals of the company.
With the information processed, it is possible to guide leaders in the decision making. They analyze the data so they are able to define a strategy or to make a change if it is necessary. For example, if the expected results are below the expectations, they can use these indicators as a map to see where they failed and try to correct them.
In the digital age, the corporate world is focused on the user experience and the results of this to the company. Therefore, it is essential to keep updated about the innovations and remember that, like your customers, your employees are also consumers of your brand. So, always remember: INNOVATE
See below some essential KPIs for management by performance indicators
Income: This is probably the main and best known KPI. It is the amount of money from the selling of the products or services offered by your company. It is important to make an earning prediction so it is possible to see if the revenue is aligned to the company’s working capital.
ROI: or Return on Investment. It is the relation between the amount that was invested and the amount that was returned. With this management indicator, it is possible to verify whether the shares are really profitable and effective.
CAC: or Customer Acquisition Cost. It must be observed with the indicators ROI and LTV. This way, you can check if the company’s growth is being satisfactory. The CAC must be recovered in a maximum of 12 months, otherwise your company will need a lot of capital to grow in a big scale.
LTV: or lifetime value. Basically, it is your customer’s value to your company. What net profit does it generate while maintaining business relationships with your company? This KPI is important to define new goals, such as the amount invested in marketing, reasons for withdrawal, expected revenue, etc.
Churn rate: It is the percentage of customers that cancel, quit or give up a product or service in your company. How many customers complete the purchase and how many abandon the cart in a given period of time? It is directly related to LTV, because the higher the churn rate is, the more you will spend to turn an interested person in your product into a customer.
Conversion rate: this KPI measures the number of customers that take a desired action in any step of the purchase journey. It can be by providing some contact information, finalizing a purchase, downloading an e-book, etc. The higher the conversion rate, more effective is your strategy for that particular stage.
Customer Base: It is the number of customers that you have. Over a period of time, it is expected that you increase this number on your customer base. This indicator allows you to follow this growth.
How to manage by indicators?
Managing all of these indicators can be quite a challenge. Mainly, because they are numerical relations used to measure the success (or not) of a strategy and also of the team.
One option to make it easier is to implement a gamification software. It allows us to demonstrate the results of these metrics as well as the objective of each of them in a less complicated way. And more, it is visually more pleasant and fun for the employees.
With a gamified tool, the results are shown in real time, so everyone on the team is able to monitor and make the necessary adjustments to achieve the goal of the company.
Did you know that with the platform Gamific it is possible to manage by performance indicators? It allows you to monitor your entire team in real time and in an easy way, especially with remote work.
This is how Gamific can help you during remote work: it generates detailed and accurate reports, you can monitor the entire team with instant feedback, it enable and stimulate the development of essential skills of everyone on the team, it helps to perform the activities throughout the workday, it creates and improves organizational culture and also the team spirit. And last, but not least, it guides the decision-making process and the development of strategies to achieve the expected objectives.
How about changing the way you measure your company’s success and empower your entire team even during the home office? Do you want to know how? Meet Gamific.