KPI’s (Key Performance Indicators) are very important for any business. This is critical for evaluating your business's financial performance and it can also be used for monitoring customer satisfaction and other company objectives necessary for the growth and development of the business.
Too often we see business owners be unsuccessful in fully understanding how their business operates. And because they fail in logging in any existing departmental metrics of their company operations all throughout the year, these entrepreneurs often end up with an idling business pondering where the problems lay
Key Performance Indicators are a significant part of measuring or evaluating the successes and failures of any business. KPI is a measurable value that shows how successfully a company is achieving key objectives for the business. Various business organizations use KPI’s to assess their success at reaching targets that is why selecting the right KPI’s will depend on the industry the business belongs to and which part of the business the company is planning to track.
Also known as a dashboard or flash report, KPI’s enables business owners and department heads to get a summary of how the business or individual departments are performing at any given moment throughout the year. A KPI evaluates the objectives of the business against the concrete, tangible data over a specified period.
But not every key performance indicator measures the overall performance of the business. This depends usually on the size of the business. Bigger corporations with multiple departments often have multiple KPI’s assigned to each department. Different departments have different operations and scope of work so the KPI must be specifically patterned to this. But even with having multiple KPI’s, each report must be tied together into a single flash for the business as a whole.
Key performance indicators can vary over multiple businesses. For example, the KPI for a distribution company will differ from a manufacturing company, and so on and so forth. Even similar companies within the same industry can have different KPI’s since not all businesses have the same goals and metrics. These key indicators are existent and monitored in most businesses for different reasons. In a flash report, these are evaluated meticulously and put under a magnifying glass so they can inspect it with a fine-toothed comb. When accomplished weekly, a flash report will show business owners the important areas of the business in which the company is underperforming and provides time for correction.
KPI’s are essential to all business objectives because they enable these goals to be at the forefront of every decision making. It is important that business objectives are properly communicated across the company because when people understand and are responsible for their KPI’s, it will make sure that the business objectives are on top of their minds. Simply put, you cannot manage anything what you cannot measure.
A KPI is as versatile as it is strong. From evaluating your finances to measuring the productivity of your employees based on the status of a job in progress, KPI’s are put in place to help an organization be guided in achieving their goals. Depending on what objectives you plan to achieve, your KPI may shift or vary depending on your goals, current project and timelines.
For example, by knowing on a weekly basis just how much money is coming in and going out, it provides you just enough time to correct the course when something is wrong. Instead of fixing the problem twenty days after the end of the month, you can now make necessary modifications throughout the week based on KPI management tools.
For measuring employee productivity, you will see things such as the number of hours an employee worked on including overtime, revenue generated and the status of a current job that is up for completion. When evaluating the work hours of an employee against performance, this can provide you with a general idea of the number of overtime needed to complete a specific project and help you see if you paid overtime for a much lesser productive work. For bigger companies, using KPI for employee’s productivity can also be used to measure performance for every department.
KPI’s serves as your guide to recognizing every moving part in your business, and may possibly just be the most essential part of management. This is why it is equally important to choose the right KPI’s to implement for your business. To do so, you need to know the process of selecting the right KPI for your company such as:
The KPI’s that you choose to implement for your business will be greatly influenced by your company’s existing business model and the industry that your business belongs to. For instance, a B2B software service company may opt to focus on customer acquisition and mix, while a retail company with a brick and mortar operation may focus on sales per square foot or average customer payout.
It is highly recommended to use KPI's template, to help you track your business performance and progress.
As an endnote, always makes sure that your KPI’s will specifically measure your progress towards overarching company objectives. Less is more so you have to understand that choosing between 4 to 10 KPI’s to focus will be more beneficial for your organization. The significance of certain metrics will definitely vary as the priorities of your organization changes so you have to carefully consider the stage of growth of your company. And while you may reference industry KPI’s, always remember that you need to choose the KPI’s that are most relevant and applicable for your specific situation and organization. This will ensure that you are being guided towards something attainable which will result to the success of your goals.
With the world getting highly competitive, it is not easy to bring development in any business. There are times when the business owners fail to understand the importance of real marketing plan. Despite of their huge spending on different types of marketing strategy, they do not achieve the expected results. It happens because their approach in marketing is not really good and effective.
The motive of every business is to reach as many potential customers as possible. But if the approach is not correct, then reaching to them becomes a bit difficult. With the advent of modern marketing platforms and resources, it has become easier to approach the targeted customers at cost effective prices with the help of a good and well planned marketing strategy. It basically targets the people showing interest in the products and services of the organization or in the certain line of business.
At the center of any well-written marketing plan is a list of clear and strategic marketing objectives. These are your defined goals that outline your marketing efforts intentions while providing your team with a clear and precise direction to execute and follow. This also provides the necessary information for business executives to evaluate and support.
To have a successful marketing campaign, you need to know exactly what your goals are. You must also be able to develop focus in order to achieve your goals. You have to understand that things do not happen by themselves so by defining your marketing objectives; you will know what to do in order to achieve it. This will also allow you not to be easily distracted by typical get – rich – sales pitch because if you know where you are really going, you will not end up somewhere else but on the path towards marketing success.
To help with your marketing objectives, you can follow the AIDA model.
In modern marketing strategy, Segmentation, Targeting and Positioning or STP is a well-known strategic approach in creating a successful marketing plan. The STP approach is helpful when creating marketing communications plans because it guides marketers to prioritize proposals and then establish and dispense personalized and pertinent messages to connect with different audiences. If you want to have a successful marketing campaign, you need to know what your audience really need and you can do this by simply listening to what they want instead of focusing on what you need to accomplish.
Audience targeting allows you to reach out to consumers interested in your business. This approach helps you get your message to the right people and customized your campaigns based on your audiences’ preferences. This way, you know your marketing strategy performs better because it is targeting the specific market segment for your business. With audience marketing, you will be able to spend less on your marketing campaigns and focus on getting more conversions.
Through audience targeting, you have more chance of reaching consumers who are interested in your products or services and deliver relevant messaging. It also reduces the odds that you will waste vital resources on your marketing campaign on uninterested viewership and help move potential clients down the proverbial funnel.
When developing a marketing strategy, it is best to first evaluate your marketing campaign and determine how it is performing based on your objectives. Look for solutions on how you can optimize or revise your approaches, marketing channels and marketing activities.
When creating strategic planning using competitive analysis method, it is important to take into account not only the company’s business but also the activities of your competitors as well as the current events in the industry your company belongs to. Most of the time, having a competitive analysis enables you to significantly minimize the direct effect of your weaknesses to the opportunities that may present for your business. This also allows you to maximize your strengths and create advanced strategies for known threats that may negatively impact your marketing.
Don’t be afraid to explore the competitive landscape. Find out what companies have interesting products? Whose brand gets talked about on social media? A competitive analysis will help you identify different challenges and threats before they become serious problems in the future.
Click below to download your free Competitor Analysis Tool:
Marketing tactics refer to every strategic action you carry out that direct the marketing of a product to influence specific marketing goals. From your marketing strategies, you can develop high level marketing tactics that will ensure the success of your marketing efforts. When you define your marketing tactics, it must reflect the present situation and have a clear plan on how you will be able to maintain and nurture it so these factors will always be the driving forces of your marketing campaign. When you know your audience, you can also see the actual needs of your target market that are not being met. In essence, these opportunities are actually your future strengths and must be prioritized among others.
Know by heart all the effective strategies of marketing. Your marketing strategies will only be successful if you know the right tactics to employ. Without them, you will never know how to make your business click to your target market. It will also be better to develop a market niche so you can have a specific group to focus on.