Is your KPI Tracking Software pursuing these 5 metrics?
Achieving sustainable growth is vital for businesses of all sizes today. With pandemics like COVID-19 showing how unexpected events have the potential of wrecking global economies in the blink of an eye, it is important for today’s businesses to have a well established Key Performance Index driven metrics to track for their business growth. By following these metrics closely, a business can be better prepared to combat threats from competition, changing market trends, disruptive market forces like pandemics, and ensure that there is steady cash flow even in the most challenging of times. These KPI metrics should be on the organization’s business dashboard software which will be reviewed and closely monitored by the leadership and will form the foundation of all strategic initiatives and decisions taken by the board or top management. So now the question is what are those KPI metrics that need to be tracked on an organization’s business dashboard software to ensure sustainable growth?
Here are our top 5 picks:
1. Cash To Revenue Position
In the initial days of the COVID-19 pandemic, China was one of the worst affected economies. Studies showed that nearly 85% of small and medium enterprises (SME) were projected to run out of cash in a timeframe as low as 2 months due to severe lockdowns leading to restrictive economic activity.
Cash to revenue position is an indication of how well endowed is an enterprise to deal with emergencies and how much liquid cash they have at their disposal to invest in measures to counter low revenue scenarios such as pandemics or weak consumer spending. When the position is better, business owners or management has breathing space to make amendments in their operational style when revenue channels are disrupted and without having to take drastic measures such as cutting jobs or delaying bills. This is definitely an important metric that needs to be on every business KPI dashboard software and monitored regularly.
2. Customer Acquisition Costs
For any business to survive, there is a need for customers to spend money on their products or services. In the business world, it has been proven through studies that acquiring a new customer would incur more than 5 times the cost it takes to retain an existing one. As such, customer acquisition costs have the potential to consume the budgets of several departments like sales, marketing, and IT. So, leaders need to keep a tab on spending in this section and this is precisely the reason why customer acquisition costs are an important metric that needs to be tracked via an organization’s KPI dashboard software.
3. Outbound Marketing Performance
Marketing is the engine that fuels sales. The better a business is able to market its offerings to the right audience, the greater will be the business returns in terms of sales revenue. However, marketing needs to be a highly disciplined and well-tracked activity, especially for small and medium businesses.
Conversion rates from marketing activities are important in ensuring that a business always has a healthy leads pipeline that the sales department can focus on and convert into deals in due course of time. Using intelligent marketing analytics and automation platforms, businesses need to track their ROI on every single dollar spend and correlate to the leads or business opportunity, or social influence that a marketing campaign was able to generate.
While sales are in itself a large activity that can be tracked through a separate KPI in an organization’s KPI tracking software, it can also be clubbed with the marketing KPI in small businesses. The reason is that in smaller organizations, it is quite common for marketing and sales to be functioning as a single entity sharing a lot of human and technology resources and well synchronized towards a common goal.
4. Operational Efficiency
Improving the quality of labor is vital for businesses to survive in the long run. Studies show that 52% of SMB owners find it hard to hire a quality workforce. So, the next biggest challenge here is to maintain productivity. Every business organization will have its unique list of business processes, policies, and frameworks on which they operate daily. As the competition tightens, it is important to work as a lean business organization with more agility to ensure that customer needs are understood and fulfilled at the earliest. For this to happen, there is a need for seamless operational efficiency.
It is important to keep track of the time it takes for a sales process to be completed, the number of sub-processes involved, the amount of productive time an employee or team spends in a project or sales transaction, and other similar elements that need to be measured. Once these are known, it becomes easier for decision-makers to re-engineer processes and work frameworks regularly to cope with changing trends in the market and help employees adopt new additions to the business easily, such as new software or new machinery in a manufacturing unit.
The training process can be tweaked in line with new learning norms prevalent in the market and made easy and highly accessible for employees so that they can speed up the learning activity. Both the employee performance as well as the operational efficiency of the business thus need to be tracked efficiently in an organizational KPI tracking software.
5. Employee Engagement
Employees are just as important as customers to a business. Ensuring that they are well-taken care of is a key milestone that every business must strive to achieve. Studies show that 71% of executives believe that employee engagement is key to ensuring successful business growth. While measuring it as a KPI, employee engagement will include a vast majority of key indicators of employee wellbeing. Some examples of items to be evaluated for this KPI include employee turnover, attrition rates, revenue per employee, hiring budgets, etc. Insights from this metric are important to plan the future expansion of the business as you always need employees to drive your business forward in all circumstances.
The above 5 metrics give a clear picture of whether your business is progressing in the right direction. Having a regular watch on these will ensure that you are prepared well for any emergencies or disruptive situations that may occur in the future like the COVID-19 pandemic. To drive maximum results, it is important to have a digital backbone that will enable all units in your business to seamlessly measure KPIs and perform according to expectations in their respective tasks. This is what InfinCE can help you achieve with its range of business applications available on a secure cloud platform. Get in touch with us for more details.