Key performance indicators are quantifiable measurements that will help your business define and measure progress towards your business objectives.
The best KPIs are those which are actionable. For example, a great way to think of goals and ask: “If we knew that KPI of “x” we will do “y”.In order to do this you must consolidate all your data across all your multichannel operations, data captured can include online analytics, ERP, Bricks and mortar stores,Call centre’s etc. Compiling all data in one source is the only way to ensure a 360 degree view of your customer.
Here are some KPI’s
Depending on whether you are product or service driven, your KPI’s may vary, but here are some examples.
Kaplan & Norton from Harvard Business School realised that measuring the health of an organisation merely by its financial results was flawed. Financial results (in particular Sales Revenue) tells the story of past events without providing indicators to the future success of an organisation.
They suggested analysing other measures, that should be combined with the Financial perspective including training, HR, business processes to give a ‘balanced’ view of an organisations health. We can apply the same concepts to our online strategy, balancing the conversion rate with youremail address acquisition rate, balancing your online sales with the cost of PPC campaigns, balancing revenues from affiliates with the number of returns.
The executive dashboard displays a graphical representation of your KPI’s and we suggest it should be the single access point for your management team to view the success or see which areas are failing in your organisation. Each company is different A single traffic light display can show a weightedrepresentation of the importance of your scores – green is good!
The Weighted Balanced Scorecard
To take the Scorecard concept to the next level is to have a weighted balanced scorecard. This basically requires that you identify the importance of thedifferent KPI’s and add a weighting to them, so that the overall information is more relevant to the company.
Why Implement a Balanced Scorecard?