Key Performance Indicators, aka KPIs, are a very important part of growing a business because they identify how effectively a company is achieving key business objectives (klipfolio.com). It’s shocking to know that some businesses don’t have these in place. These are important because they give you and your employees some direction. If you choose not to use set KPIs you risk mismanaging your business.
The first thing you need to do is quantify your goals. Instead of saying “I want to grow my business” try “ I want to grow my business by 30% by the beginning of Q3.” Quantifying your goal will hold you more accountable and give you a better direction to work towards. After you’ve established your goal, explain why it matters. Of course higher ROI matters, but define why. Then you can take the steps to share how you’re going to measure your progress.
Klipfolio has laid out the SMART criteria for framing KPIs.
- Create a Specific objective.
- Measure your progress.
- As we’ve stated in previous posts, make sure your goal is Attainable.
- Make sure your goal is Relevant.
- Establish a Time-frame for your goal. This is useful for goal setting as it gives you deadlines to meet.
Once you have your objectives set, you can start tracking and working towards those goals. You will need to be open to feedback from your team so you can learn from your actions and keep working toward a common goal. Keeping up with your competition requires you to evaluate and reevaluate your tactics a lot, and that’s how you keep growing.
To learn more about KPIs and how to establish them in your store, check out these videos.