Being a business owner requires you to make countless decisions that will directly impact your company. It’s key to have the correct data and background information in your back pocket when making such critical decisions. That’s why many companies utilize ERP systems to provide key performance indicators (KPIs) which can instantly inform professionals of the status of both the whole landscape of their business and certain aspects that require additional focus. There are numerous KPIs that are valuable to track, and many hire experts to identify such KPIs. The KPIs your business should be monitoring will depend on your industry and overall business model, but there are a select few that most companies should track on a regular basis. Here’s a list of several important KPIs that your company should be monitoring.
Average Sales
Measures the sales dollars and/or the number of orders in a given timeframe. This is typically measured against a benchmark number that you determine based on your sales forecast.
Sales Forecast
Measures your expected future sales in dollars and/or the number of orders in a given timeframe. This can be calculated using a combination of historical figures, seasonal and industry trends, and business environmental factors including competitors, economics, and technology.
Lead Conversion Rate
The lead conversion rate is a percentage measuring how many potential customers, or leads, turn into customers and sales. This can be based on the number of people walking into a retail store or accessing a website. This information helps you determine how well you are appealing to your target market.
Completion Rates
The completion rates you track will differ depending on your business type. Manufacturing and distribution companies focus on order completion rates, service-based companies would track completed service orders. Either way, it’s important to track the levels at which you are completing tasks in order to ensure productivity and hit targeted business goals.
Net Promoter Score (NPS)
The NPS Survey asks one question: How likely is it you would recommend our company to a friend? Ten being extremely likely and one being not likely at all. Those who give you a ten or nine are your promoters and add to your score. Neutrals are sevens and eights and don’t affect your score. Detractors are those who gave you a six or less and reduce your score. Your company’s NPS can range from -100 to 100 determined by the percentage of promoters and detractors.
Making critical business decisions is no simple task, but it’s made easier when you have accessible and accurate data to inform your decision. By selecting and implementing a robust ERP system like NetSuite in your business, the hard work of tracking key KPIs is done for you. That way you can focus on running a business instead of spending valuable time tracking data and reports. If you want to learn more about NetSuite, our team at BerganKDV is here to answer your questions. Contact us or watch this webinar for additional information about NetSuite and what it can do for your business.
