Do you know your Key Performance Indicators for your business?
Data is everywhere for a small business owner. You and your staff can spend all day and every day collecting all the data that exists for your company and anything to do with your market. Many get too overwhelmed and have trouble collecting the data they need.
What ends up happening is the business doesn’t collect the data needed OR doesn’t look at the data in a complete way.
You need to find the key data that matters in your business for it to run as successful as can be. These are your Key Performance Indicators (KPI).
One size doesn’t fit all. What is key to your business may not be key to another one…even if the 2 are in the same industry.
So how do you do it and where do you look?
One way to pick the pieces to the puzzle is to ask the following question: What data that if changed could have a major effect on my business?
Getting your hands on this data in a timely basis can make a huge difference in the success of a business.
One example of data that is critical to all businesses is Revenue. Whether it goes up or down, it will have a major effect on your business. And you don’t want to wait till the end of the year or a quarter to find out the actual revenue is not where you projected it to be.
How do you find more? Try going through some data pieces in each of the following areas:
This is the first place to start because most successful companies already track this using software like QuickBooks. QuickBooks has so many reports and so many ways to display the data. But look through the data and find out what are the key data points you need to see on a regular basis.
How is your client pipeline doing? Where are your leads coming from? What is your close rate? Which lead source is working best for you? If you do not know any of these answers then you probably do not have a CRM (Customer Relationship Management) system. There are plenty of CRM systems out there in the marketplace. Even at the start, you can use a spreadsheet like Google Sheets. What key data do you need from these questions? Make sure you consistently track this data and in real time.
Who is coming to your site? Is your site working properly on all devices and browsers? If you have a website, you need Google Analytics. There is so much data collected. You will not need every piece of data. Make sure you look over your Google Analytics to see what data is needed for your business.
How many repeat customers do you have? What does it cost to get a new customer? What does it cost to maintain a customer? How long does your average customer stay with you? Which customer refers you the most business? How do you keep your customers informed on what is going on in the business? Again, ton of data, do you track it all? What are the key data points in this section for your business? A CRM can help you track your data or even a spreadsheet.
Do you have a process your customer goes thru to get your product or service? Maybe you use a project management software tool like Microsoft Project or a tool like Trello? But can you track multiple projects with multiple clients efficiently? This will show you quickly where the bottlenecks are.
All the above areas can have different software platforms. It can be tough to get a clear picture of what is going on. Just like a car has a dashboard to give you a quick view of what is going on with all the different systems in your car, a data dashboard can do the same.
Make sure you use a data dashboard that can pull the data from the different platforms and display in one area for you to see. This DATA WILL tell you a story. Make sure it is easy for you to read.
Speaking about making things easy… I mentioned above about Google Analytics. There is so much data that sometimes finding the key data for YOUR business is tough to do. This is why I have a FREE Zoom call for your Google Analytics Check. I can look at your data and show you what in your data sticks out for you to use. If you want more information, click here.
I just did a quick summary here. There is so much more I can get into to find your KPIs. If you would like to have a FREE session to go over more specifics, use this link to book a 30 minute Zoom session.