Key Performance Indicator (KPI)
Performance indicators are part of the day-to-day business of various companies that need to measure results. Also called KPIs, the corporate environment metrics provide an opportunity for managers to more accurately look at business problems and define strategies for improving internal routines.
In this way, the company can gain competitiveness and serve a larger audience with high quality. If you want to know what a KPI is and how its use affects a company, follow our post today!
What is a KPI?
A KPI (Key Performance Indicator) can be defined as some metric to evaluate the performance of an aspect of a company’s operations. Each key indicator can be defined according to the business profile and market standards. In this way, the IT manager can identify problems with greater precision and, at the same time, align the business strategies with other enterprises of its area (benchmarking).
How does the implementation of a KPI impact my business?
Well implemented, a KPI can have great benefits for a business. Tracing operational bottlenecks and internal problems can be accomplished with greater agility and safety. Using KPIs, IT managers have a broad view of how each part of the business works (from the indicators) and can optimize resources as needed.
At the same time, a KPI gives the company an opportunity to create continuous optimization flows. By evaluating which factors most impact enterprises’ profits, managers can define a strategy aligned with broader quality standards and thus increase business profits.
Main KPIs for enterprise environments
KPIs can be applied to various areas of a company. In this sense, the manager must identify the critical points for the enterprise and, from this process, define dynamic indicators aligned with the business needs. Thus, is is possible to highlight 5 examples of KPIs for corporate environments:
1. Call response time
One of the factors defining the quality of a support team is the average time spent to respond to calls from users. Given this, the company can define an indicator to evaluate the quality of the assistance through the help desk by the technical team. Controlling this indicator should generate greater precision in services.
By identifying which teams take longer to troubleshoot calls, it is possible to gauge the points in the service routines sector in need of improvement. In this way, managers can modify internal processes in search of patterns, greatly targeting users’ needs, reducing the impact caused by operational failures.
2. Customer satisfaction
Customer satisfaction is directly connected to the degree of loyalty in medium and long terms. Given this, managers can conduct research in after-sales stages to identify how each consumer responds to business routines. Thus, it shall be possible to evaluate which procedures have the greatest positive impact and eliminate practices that have poor reception among the enterprise’s target audience.
Performance indicators of satisfaction levels are usually measured in three ways: satisfaction survey, decline in complaints or increased engagement. The best way to measure also depends on the type of business.
3. Operational error index
In order to be agile, it is crucial that the company have an operating chain with some low error rate. By evaluating which points are the most problematic ones, managers can find flaws that impact on the internal processes’ fluidity and therefore apply corrective measures more accurately.
In the long run, this indicator can be seen as a way to make business more effective and competitive. In addition, lowering this indicator improves the outcome of other indicators such as customer retention index and churning (it reduces its number).
4. Internal satisfaction
To identify the effectiveness of management policies, the area of human resources or marketing (endomarketing) can conduct internal surveys to identify the degree of satisfaction among employees. They can be attached to questionnaires that encourage practitioners to give feedback on how internal policies impact their day-to-day and thus help the business improve its management methods.
5. Conversion rate
The conversion rate helps your business identify how your sales campaigns and marketing strategies impact the market. By evaluating the success of the leads created by the business, the company can assess how its approaches influence revenue and optimize its sales processes. An example might be the conversion rate of users who have downloaded the TRIAL version. Of these, what is the license purchase rate? The result is the conversion rate.
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