KPIs or Key Performance Indicators are metrics used to measure performance against goals. They provide managers with information on how well they are performing their jobs.
KPIs are useful tools for measuring performance and identifying areas where improvement is needed. In other words, KPIs are indicators of success.
Here are some examples of KPIs in organizations:
Examples of Financial KPIs:
• Revenue per employee ($)
• Net profit margin (%)
• Return on assets (%)
• Operating expenses as a percentage of revenue (%)
• Cost-to-sales ratio (%)
• Gross margins (%)
• Profit margin (%)
• ROA (%)
• ROE (%)
• Cash flow from operations (%)
Examples of Customer KPIs:
• Customer satisfaction score (%)
• Customer retention rate (%)
• Average order value ($)
• Number of repeat customers (%)
• Number of new customers (%)
• Customer lifetime value
• New customer acquisition cost ($)
• Retention rate (%)
• Customer service rating (%)
• Customer Satisfaction Score (CSAT)
• Net Promoter Score (NPS)
• Customer complaints (%)
• Complaints resolved within 24 hours
• Complaint resolution time
• Average complaint resolution time
• Customer churn rate
Examples of Marketing KPIs
• Customer satisfaction rating (%)
• Number of complaints received per month
• Average complaint resolution time
• Complaint resolution rate (%)
• Customer retention rate (%)
• Repeat business rate (%)
• Retention rate (%)
• Loyalty score (%)
• Customer acquisition cost ($)
• Sales growth (%)
Examples of Operational KPIs
• Order fulfillment time
• On-time delivery rate (%)
• Total inventory turnover rate (%)
• Inventory turnover period
• Workforce utilization
• Repair rate
Examples of Supplier KPIs
• Number of suppliers
• Average Lead time
• Percent defects
• Purchase order cycle time
Examples of Human Resources KPIs
• Employee turnover rate
• Time to fill an open position
• Employee satisfaction
Conclusion
Key Performance Indicators (KPIs) are metrics used to measure the performance of an organization against its goals. KPIs help managers identify areas where improvements need to be made.