Step 2: Highlight the important metrics
Posted: Tue Jan 21, 2025 4:54 am
Determine which metrics are important specifically for your company. To get a quick and accurate answer, discuss this issue with department heads and the chief accountant. You can confidently consider the indicators on which the results of the activity clearly depend. The main metrics include:
revenue volume;
sales volume of units of product;
traffic volume from all sources;
conversion of traffic into clients;
average check dynamics;
dynamics of positive reviews.
It's okay if you have too many truemoney database indicators: the main thing is not to implement them all at once. Limit yourself to 5-7 at first - this way you will prevent excessive workload on the team and a drop in efficiency.
Case: VT-metall
Find out how we reduced the cost of attracting an application by 13 times for a metalworking company in Moscow
Find out how
Step 3: Define metrics for employees
Evaluation of personnel efficiency and calculation of indicators should be based on actual data. To avoid errors, specify the most important numerical metrics, i.e. those that provide quantitative, not qualitative characteristics. Choose reasonable criteria for achieving goals, do not overestimate the bar.
Universal metrics for evaluating the performance of the B2B model :
number of target contacts;
number of new clients;
conversion of requests;
financial dynamics of a department or employee;
number of regular customers.
Universal metrics for evaluating the performance of the B2C model :
sales volume;
revenue;
average bill;
conversion of applications.
Study the dynamics of the selected metrics over a specific period: week, month, quarter, year. The optimal period depends on the company's strategy, the amount of cash receipts and losses, and the volume of data. If you need a more precise presentation, perform the calculation, say, not for a week, but for a month.
Step 4: Implement the KPI system into your work
The sequence of actions here is as follows:
Create documents describing new performance monitoring indicators for employees.
Specify the goals and the procedure for achieving them, and the period for which the indicators are calculated.
Send documents to all departments, discuss details and adjust the plan if necessary.
It makes sense to start with a trial implementation of the metrics system: organize a focus group of several people, check the system's functionality, identify errors and vulnerabilities. Then optimize the calculation of metrics and start testing the system in action. As soon as you manage to test it in one department, move on to another, and then start implementing it enterprise-wide.
Implementation of KPIs
Source: shutterstock.com
An insufficiently developed system will reveal multiple flaws, so even if testing is successful, do not change the routine across the entire company at once - employees may become confused or feel pressured, which may lead to staff attrition. The human factor still plays a role, and caution must be exercised when implementing KPIs.
revenue volume;
sales volume of units of product;
traffic volume from all sources;
conversion of traffic into clients;
average check dynamics;
dynamics of positive reviews.
It's okay if you have too many truemoney database indicators: the main thing is not to implement them all at once. Limit yourself to 5-7 at first - this way you will prevent excessive workload on the team and a drop in efficiency.
Case: VT-metall
Find out how we reduced the cost of attracting an application by 13 times for a metalworking company in Moscow
Find out how
Step 3: Define metrics for employees
Evaluation of personnel efficiency and calculation of indicators should be based on actual data. To avoid errors, specify the most important numerical metrics, i.e. those that provide quantitative, not qualitative characteristics. Choose reasonable criteria for achieving goals, do not overestimate the bar.
Universal metrics for evaluating the performance of the B2B model :
number of target contacts;
number of new clients;
conversion of requests;
financial dynamics of a department or employee;
number of regular customers.
Universal metrics for evaluating the performance of the B2C model :
sales volume;
revenue;
average bill;
conversion of applications.
Study the dynamics of the selected metrics over a specific period: week, month, quarter, year. The optimal period depends on the company's strategy, the amount of cash receipts and losses, and the volume of data. If you need a more precise presentation, perform the calculation, say, not for a week, but for a month.
Step 4: Implement the KPI system into your work
The sequence of actions here is as follows:
Create documents describing new performance monitoring indicators for employees.
Specify the goals and the procedure for achieving them, and the period for which the indicators are calculated.
Send documents to all departments, discuss details and adjust the plan if necessary.
It makes sense to start with a trial implementation of the metrics system: organize a focus group of several people, check the system's functionality, identify errors and vulnerabilities. Then optimize the calculation of metrics and start testing the system in action. As soon as you manage to test it in one department, move on to another, and then start implementing it enterprise-wide.
Implementation of KPIs
Source: shutterstock.com
An insufficiently developed system will reveal multiple flaws, so even if testing is successful, do not change the routine across the entire company at once - employees may become confused or feel pressured, which may lead to staff attrition. The human factor still plays a role, and caution must be exercised when implementing KPIs.