2023 is your opportunity to adopt a fresh perspective on your business. Despite the talk of a potential recession this year, there is still plenty of room for companies to thrive if they play their cards right. Now is the time to set yourself up for success, so start by establishing KPIs to push your business down the right path.
If you’re not already familiar, KPIs (Key Performance Indicators) are measurable goals set by a business. As reported in this guide to customer service KPIs and metrics, there are two main types: high-level and low-level KPIs. Whilst high-level targets focus on the overall performance of a company, low-level goals will be more specific to individual teams and departments. Both types are used by almost all major companies as a way to provide direction. Here, we cover how exactly you can use KPIs to improve your business in this upcoming year.
Identify areas of improvement
The first step is to really dig deep and figure out which areas of your business are in need of improvement. You might have some that immediately come to mind, but if not, looking into your finances to see how different areas are performing is a great way to start. This will help to identify any products or services that aren’t selling as well as others, as well as any departments that aren’t meeting their targets.
It’s also a good idea to check out your recent client feedback to ensure you’re monitoring the customer service side of things. Customers may highlight issues that you weren’t aware of, giving you an easy basis for some new KPIs.
Pick relevant KPIs
Ensure that you are setting relevant KPIs for the target area. For example, if customer service is your concern, you might base your KPI around achieving a higher customer satisfaction score. This turns a problem into a tangible, measurable goal that will help when tracking your progress and motivate employees to improve their skills.
Another common concern is digital marketing reach, which is becoming increasingly prevalent among businesses as we begin 2023. Social media plays a significant role in spreading awareness of companies and building reputations, so it’s hugely important that businesses are utilising the top platforms. To encourage this, you may pick a KPI along the lines of increasing your click-through rate.
Analyse the data
One benefit of using KPIs is that they are always measurable, so make sure to set up regular intervals to review the data you’ve collected and see how much progress has been made. Seeing changes in the statistics can be motivational for both yourself and any employees, as watching their hard work pay off in tangible results is much more rewarding.
However, it’s also important to recognise when the data isn’t showing any progress. If you’ve already taken several steps to try to improve the figures and you’re still not seeing any changes, it may be time to pivot to a new KPI. There’s no shame in this – it’s all about setting a goal that is achievable, so if you feel it’s not, it’s time to switch.
Open communication
Communication is vital across the board. Whether it’s your employees or stakeholders, openly communicating both positive and negative news can be really beneficial. It helps them to understand the basis for setting these KPIs, and what the business could achieve by accomplishing them.
It’s also important to keep everyone informed if things take a turn and perhaps you’re not going to meet one of your KPIs. Knowing why and what you plan to do to rectify the situation makes them feel involved, and particularly importantly for stakeholders – they may be less likely to withdraw any investment.
Setting KPIs doesn’t mean they become absolute requirements, they are intended to act as goals for the business to aspire to and to provide a sense of direction. It may take some time to adjust, but having these in place can be instrumental in the growth of your business.
About the author
John Williams is a business advisor with over 20 years of experience. He has spent his career helping companies develop tailored strategies and goals to meet their specific needs. In his free time, he enjoys playing golf and volunteering in his local community.
Company: This article is in collaboration with JAM
- Log in to post comments