Once these KPI benefits have been defined , it is time for operations. How can a KPI be made really effective? What aspects must be taken into account? At this point, it must be understood that each case is different. Each company must thoroughly evaluate which indicators must be taken into account to make this assessment of how the activity is developing.
Regardless of this specificity of the sector and the business itself, these are the main steps to follow to know how to make a KPI :
Define the objective to be evaluated and what strategic goals the company has.
Identify which metrics are useful to know if you are going in the right direction: it could be the number of sales made through the offline or online channel, the balance of expenses and income, the customer satisfaction index, how many new customers are being acquired, how many followers the company has on social networks, the loyalty of staff, human resources... There are many points that could be taken into account. Everything depends on point 1, what is being evaluated and what information is useful for it.
Detail the selected KPI . It must always be specific, concrete, measurable, realistic, and will be evaluated over a very specific period of time.
Monitoring this indicator in detail, sharing the results that are recorded with the teams linked to it.
KPI Examples
The best way to understand these key performance slovenia whatsapp data indicators is to deal with real examples. Below are examples of factors that could be taken as examples of KPIs in certain companies:
Financial metrics : revenue being earned from a product/service (if this is specifically being evaluated), net profit margin in relation to it, return on investment, etc.
Customer metrics : customer satisfaction, customer loyalty, number of new users being acquired, customer churn and reasons why customers stop buying/consuming from the business, among others.
Marketing and communication metrics : followers on social networks, clicks on emails related to email marketing campaigns, conversion rate of potential audiences into real clients.
Human resources metrics : staff stability, hiring and firing (whether voluntary by employees or due to layoffs by the company), employee satisfaction, established productivity rates, among others.
Difference between metric and KPI
They are often used as synonyms, but this is a mistake. The difference between metrics and fundamental KPIs lies in the concept itself, in the essence of what each is:
Metrics are numerical information and are used to structure KPIs.
KPIs use these metrics , which are obtained in raw form, so to speak, to carry them over to the company's evaluation of what is being measured.
In short, a phrase that makes the above clear: all KPIs are metrics, but not all metrics are KPIs. And how can we delve deeper into these important concepts? In specific programs for professionals such as those at EAE Barcelona, with cases such as the Master in Project Management , the Master in Marketing Management and the Master in Marketing and Commercial Management . Both programs focus on teaching students how useful it is to know what key performance indicators are and how they can be adopted in all types of businesses, brands and companies.