How to set key performance indicators for your business

Transcript: Thank you for joining me today I'm into Tracy and I'll be taking you through how to build the interactive Excel dashboard that you see behind me I'm ready to go with my I simply Excel t-shirt on and to quote Steven whew a dashboard is a visual display of the most important information needed to achieve one or more objectives consolidators and arranged on a single screen so the information can be monitored at a glance but with excel we can take them one step further and make them interactive as well before we start a little background for those who don't know me I started working with Excel 22 years ago when I worked as an accountant in investment banks in London I now live in Australia with my husband Phil and our two boys Connor and Finn I gave up accounting eight years ago to pursue my passion for Excel and desire to help people get more out of it which I do through our website and blog at my online training hub comm I run an online excel desperate course and have trained thousands of people from all over the world and from a vast array... See more →

Key quotes:

• "The most commonly measured ecommerce KPIs for sales are: Also known as the Average Market Basket, the AOV lets you know how much your customers typically spend on one single order."
• "RPC = Revenue / Total Number of Clicks It measures the average number of orders your customers made during a specific period of time."
• "Time between Purchases = Purchase Frequency / 365 The most commonly measured ecommerce KPIs for marketing are: Your website traffic refers to the total number of people who visit your ecommerce website."
• "PPC = Total Advertising Cost / Total Number of Ads Clicked It is the money you spend to turn a visitor into a customer."
• "The most commonly measured ecommerce KPIs for project management are: The total number of hours highlight important information about how much time your team is putting into any particular project."

Transcript: Hey guys in this video I'm going to explain what is KP I this term stands for acronym stands for key performance indicators and in your marketing campaigns what you're going to want to be doing is identifying what are the key metrics right like for example if I'm on YouTube some of the key metrics are the number of subscribers the number the amount of revenue that number of views per day and the number of minutes watched per video right so and that will measure you know like subscribers will measure engagement revenue will obviously major revenue um the number of minutes watched per video if that's increasing then that means your videos are getting better so that's like it you know that's that's how you determine value I mean quality and you want to track these within whatever your marketing campaign is right those are examples are just for YouTube but just as an example but for whatever your marketing campaign is you want to identify what is key for you to measure and keep track of and then as you move forward you want to keep on working on improving those KPIs right at first you... See more →

Key quotes:

• "A Key Performance Indicator or KPI is a metric that business owners and decision makers (collectively referred to as owners) can use in order to help evaluate the current performance of their operations, allowing them to set strategies and identify areas where they can set goals to fuel growth."
• "Once there is a set target, owners, their management team, and their advisors should help develop and implement strategies that drive the KPI toward the target."
• "Owners should look to develop metrics they feel will have the most impact on their final measurement (which itself is a KPI)."
• "In our example, a business owner may meet with his head of customer service, customer service managers, and his finance department and together find that its customer service costs are driven mostly by salaries and that their input into the organization would be the number of customer services calls per month."

Key quotes:

• "Here are a few examples of numerical and ratio-based KPIs: When setting any goal, you need to make sure that they’re SMART: Specific: Not just generic, like ‘More customers’."
• "If you’re starting out, and you aren’t sure, you can always tweak your KPIs as you grow."
• "For example, if you’re not pushing anyone to your website with any activities, then maybe website views isn’t an appropriate KPI for you."
• "Time-based: Set a deadline for your KPI, like ‘100 new customers by the end of the financial year’."
• "Especially if you’re starting out with a new business, setting concrete KPIs isn’t the way forward."
• "You need to keep evaluating and re-evaluating your KPIs, seeing which targets you’re hitting, and which ones you aren’t, and tailor your KPIs to your business activities."

Transcript: Hi, my name is Erica Olsen. Today's whiteboard video is on Key PerformanceIndicators or KPIs for short. KPIs are those things that are associatedwith either goals or objectives, whatever you're calling them. Those elements of your plan that are the expressionsof what you want to achieve by when. Those quantifiable outcome-based statements. So, KPIs answer that quantifiable piece ofyour goals and objectives. They come in three different flavors. So we'll talk about that in just a minutebut before we do put in great KPIs together and making sure they work well for you, youneed to have these four attributes. And before we talk about those four attributes,I just want to say the reason they need to work well for you is because KPIs are theheartbeat of your performance management process. They tell you whether you're making progressand ultimately we want to make progress against our strategy. So KPIs are the thing that do that for us. So you're going to live with them a lot. So let's make sure they're really good. Okay, so the four things you need to havein order to make sure your KPIs work for you are, number one is your measure. So the measure is... See more →

Key quotes:

• "Monitoring KPI will help online entrepreneurs identify progress toward sales, marketing, and customer service goals."
• "With the idea that KPIs should differ based on the goal being measured, it’s possible to consider a set of common performance indicators for online businesses."
• "When it comes to online business, KPIs generally fall into one of the following five categories: Sales key performance indicators are measures that tell you how your business is doing in terms of conversions and revenue."
• "Examples of key performance indicators for sales include: Key performance indicators for marketing tell you how well you’re doing in relation to your marketing and advertising goals."
• "Key performance indicators for customer service include: Key performance indicators for manufacturing are, predictably, related to your supply chain and production processes."
• "Key performance indicators for manufacturing for physical product business sold online include: Key performance indicators for project management give you insight into how well your teams are performing and completing specific tasks."