Business owners and entrepreneurs with modern systems have vast amounts of data at their fingertips. Key Performance Indicators (KPIs) help those business owners to make sense of all of that data and converts it from endless reports to a simplified set of metrics that matter most to help them run the business. KPIs can be the quantitative measurements on whether a company is hitting a particular financial goal or provide insight into more qualitative metrics like customer satisfaction. KPIs take data and turn it into actionable useful information that help business owners steer their ship.
Granted as every business is greatly different every set of KPIs will have different metrics that matter most. KPIs for one company will likely be very different from that of another company. ALTIUS works with hundreds of application partners to create customized KPI dashboards that are automated through technology integrations.
Financial KPIs. Below are some examples of common financial KPIs:
· Return on Investment (ROI) KPIs
· Liquidity KPIs (Operating Cash Flow, Current Ratio)
· Turnover KPIs (AP, AR, Inventory)
· Headcount or Payroll KPIs.
Other KPIs. See below examples of industry specific and other KPIs business commonly track:
· A retail store chain will likely want to track sales per square foot in their stores or a loyalty software may facilitate a customer retention KPI
· A manufacturing company will be interested in lead time or machine up-time KPIs
· An online company may want to track website traffic or conversion costs for various marketing campaigns
· A logistics company may want to track average delivery time, on-time deliveries, or accuracy rate KPIs
· Other companies may want to track things like customer satisfaction, social media following or sustainability measures.