Key performance indicators (KPIs) are measurable values that help businesses track and evaluate their progress toward specific goals. Here are 20 potential KPI’s that small businesses may want to consider:
- Revenue growth: The increase in revenue over a specific time period, such as month-over-month or year-over-year.
- Net profit margin: The percentage of revenue remaining after all expenses have been paid.
- Customer acquisition cost: The total cost of acquiring a new customer, including marketing and sales expenses.
- Customer retention rate: The percentage of customers that continue to do business with the company over a specific time period.
- Customer lifetime value: The estimated total value of a customer to the business over the course of their relationship.
- Sales conversion rate: The percentage of leads that are converted into paying customers.
- Average order value: The average amount of money that a customer spends per order.
- Website traffic: The number of visitors to the company’s website.
- Social media followers: The number of followers on the company’s social media accounts.
- Email subscribers: The number of people subscribed to the company’s email list.
- Employee retention rate: The percentage of employees that remain with the company over a specific time period.
- Employee satisfaction: A measure of how happy and engaged employees are with their work and the company.
- Time to hire: The average time it takes to fill an open position.
- Productivity: The amount of work that is completed in a specific time period.
- Quality: A measure of the level of excellence in the company’s products or services.
- On-time delivery: The percentage of orders that are delivered on time.
- Inventory turnover: The number of times that the company’s inventory is sold and replaced over a specific time period.
- Perfect order rate: The percentage of orders that are completed correctly and on time.
- Downtime: The amount of time that a company’s equipment or systems are not in operation.
- Safety incidents: The number of accidents or injuries that occur in the workplace.
These are just a few examples, and the specific KPI’s that a small business should track will depend on its industry, goals, and operations. By regularly monitoring and measuring these indicators, a business can gain insights into its performance and make informed decisions to improve its operations and drive growth.