Key performance indicators are crucial to running your business. When you know accurate numbers and statistics for every aspect of your business you can make much better decisions as to which areas to work on.
- The five areas of the business that are essential for you to be measuring are as follow:
- Number of leads – how many prospects are you speaking to? How many phone calls do you receive or how many people come through the door.
- Conversion rate – how many of your prospects do you convert into a paying client? This is your sales conversion percentage.
- Number of transactions – on average how many times do your clients buy from you in a year. This is a good measure of your repeat business.
- Average dollar sale – how much does each client spend with you? Up-selling and cross-selling are two examples of how to increase this metric.
- Margin – how much profit are you making on your sales?
Take control of your business in 2013 and see the momentum that comes from measuring your performance. Business KPIs will help you strategise and make the right decisions to help you grow.
In addition though make sure that you have role specific, individual KPIs for each team member. Tracking the performance of each employee will aid you in leading your team, rewarding the wins and encouraging self-management. In business the more you know your numbers, the more your numbers will increase.
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