Measure the performance of your business to know its success.

Having your own business is a constant performance to fulfill the vision and goals you have in order to achieve success. On many occasions we believe that we are losing focus on what we want from the company or we think that our actions have not allowed it to have the desired success, therefore, many multinational companies use KPIs to help them verify what works or doesn't work for the organization.

The Key Performance Indicators either KPIs they are metrics that help you evaluate certain actions in order to know if they are going the right way. It is important to have metrics of this size because they help you to know the impact of your strategies and how they developed during the weeks or months that you decided to carry it out.

Within the KPIs, it is important that you choose the indicators according to what you want to evaluate and monitor in your company, since these must always be aligned with what your business pursues. If at this point you don't really know what you want as a business, we leave you these questions that will help you determine it: 

What is the business objective?   

What are the general goals?

What are the goals they pursue in different areas?

What do you want to measure?

Is what you want to measure related to your objectives as a business?

Will the KPIs you selected help you identify your areas of opportunity?

Who will be responsible for measuring the KPIs?

Do you have professional tools that will help you measure?

Who will analyze and make decisions based on the results of those KPIs?                                                           

Considering the previous questions, we show you certain examples so that you can take them as a basis, these are the financial KPIs and marketing and sales KPIs. 

These are important within any business. They allow you to measure from the levels of debt, liquidity, solvency, among others.  

• Net profit: It is an indicator that shows the difference between income and expenses.
• Net profit margin:  shows what percentage of your income is net profit. 
• EBITDA: It is known as profit before taxes or gross operating profit before deducting financial expenses.  
• Return on investment or ROI: It is an indicator that provides you with information on the profit that is generated as a result of a certain investment made. 
• Revenue growth rate: andThis measures the speed of growth of the income of your business.

These KPIs related to marketing and sales are important because they tell you how the qualification of leads is progressing, an advertising campaign or if the established goals are being met in the expected percentages or sales. In this area you should carefully choose these indicators that are useful to measure the effectiveness of the actions taken, such as the following:

• Fulfillment of sales objectives: here you see the relationship between sales targets and actual sales.
• Conversion rate: here it is measured how many leads (from different campaigns) become customers.
• Sell Through Ratio: is the percentage of inventory units sold during a period. It is calculated by dividing the number of units sold by the initial inventory available in that period. It is a very important metric in retail or manufacturing. 
• Lead cost: It is the average cost that your company invests in getting a lead for subsequent qualification.
• Degree of customer satisfaction: this indicator is measured through surveys. A fairly common type of indicator is the NPS or Net Promoter Score.
• Positioning in search engines and percentage of clicks (CTR): In this, the impact of your ads is measured, knowing how many users have seen your ad or have clicked on it. 
• Bounce Rate: evaluates the number of users who visit and then leave a website after viewing only one page of it and within a few seconds.