There can be several types of performance metrics for Sales, Marketing, Management, Customer Service, and IT. The industry and company goals determine the performance indicators for any firm.
Here are five examples of KPIs that you can display on your conference room digital screens:
1. Customer Effort Score
One important KPI you should consider is the customer effort score (CES). This metric shows how easy it is for your customers to use your product. It’s vital as 94% of customers who experience little effort in using their product or service have a higher chance of purchasing more in the same company. You can get this data by asking your customers to rate your products based on their experience while using them. By measuring it, you can do a survey using the Likert scale. It can be a 5 or 7 point scale with a ‘strongly agree’ to a ‘strongly disagree’ label.
2. Time to Value
Time to Value measures the amount of time your customers exert before they get value from your product or service. There’s a higher chance of repurchasing if the customer’s time-to-value is shorter. If you fail to manage your product or service value, you’ll lose your customers to your competitors.
3. Cross-sell and Upsell Rate
Upselling means to increase a sale’s value by offering a more expensive option of the same product. For example, if a customer is interested in buying Laptop A, you’ll offer Laptop B as it’s the more “premium” version with better specs (and higher price.)
Cross-selling also increases a sale’s value but in a different way. You won’t replace what the customer wants to purchase. Instead, you add more similar products. For example, if the same customer who came to buy a laptop purchases a mouse or keyboard (since you convinced her that the mouse would make her life easier!)
This KPI lets you know if your customers find your products valuable. It also helps you determine how easy (or difficult) it is for your customers to interact with your product. These metrics also indirectly reflect the selling efficiency of your sales reps.
4. Product Stickiness
Customer retention is vital. Basically, product stickiness measures the customer-product engagement in which you measure the frequency of your customers using your product.
One way to quantify product stickiness is by dividing your daily active users by the monthly active users. The higher the number you get, the better. That means your product is performing well. Another way to help engage your product to your customers is by simply sending them tips and tutorials on using your product.
5. Common Issues
All customer issues are not the same, but many often are. You can categorize these common issues into groups. This way, it’s easier for you to determine which issues customers face recurrently and find a way to fix them. These are KPIs also help in product improvement and prioritizing customer services.
The Bottom Line
We live in the 21st century, and in this digital era, firms must realize the importance of faster and more accessible business intelligence. Simply having a KPI excel sheet will not be enough. The management must ensure that these data are conspicuous and constantly visible to the concerned staff. For that, organizations can easily repurpose their existing TV screens or deploy a corporate digital signage solution.