What should be in a KPI dashboard?

A KPI dashboard can be a powerful tool for monitoring your business performance and making data-driven decisions. 

But what should be included in your KPI dashboard? 

In this article, we’ll discuss:

-What is a KPI dashboard?

 -The 4 features that should be in a KPI dashboard.

 

What is a KPI dashboard?

A KPI dashboard is a visual representation of your quantitative values that indicate your business’s performance against goals and objectives.

A KPI is a measure of your firm’s success against pre-determined goals;

– typically agreed upon by your company, financial backers, or other stakeholders. 

 

What Should Be in a KPI Dashboard?

A KPI dashboard is a powerful tool that can help you track your company’s progress and make data-driven decisions. 

But not all KPIs are created equal. 

To create an effective KPI dashboard, your KPIs should have the following four features: 

4 Features That Should Be in a KPI Dashboard:

1. Business Objectives and goals

Firstly, Business Objectives and goals should be in a KPI dashboard.

What are the 4 main business objectives?

There are four main business objectives that any company should strive to achieve. 

These four main business objectives are:

1]- revenue growth,

2]- profit maximization,

3]- customer satisfaction,

4]- and market share. 

Each of these 4 main objectives is important to ensure business success. 

1]- revenue growth,

Revenue growth is the most basic objective for any company. 

Without it, the company will eventually go out of business. 

Revenue growth can be achieved by;

– increasing sales both domestically and internationally,

– expanding into new markets,

– and increasing market share. 

2]- profit maximization,

Profit maximization is important to ensure the long-term viability of the company. 

Profit maximization can be achieved by;

– increasing efficiency,

– reducing costs,

– and increasing prices. 

3]- customer satisfaction,

Customer satisfaction is key to ensuring that customers keep coming back and referring others to your company.

4]- market share. 

Market share is a measure of the relative size of a market.

Businesses want to know how many people they can service or how many products they can sell.

But often they are unable to answer these questions precisely.

Understanding your market share is crucial to success.

And this is because increasing Market Share increases your revenue.

What are the 3 main goals of a business?

There are 3 main goals of a business and they include;

 1]- to acquire new customers,

2]- to retain current customers,

3]- and to make more money from current customers. 

 1]- to acquire new customers,

Acquiring new customers is one of the 3 main goals for a business to grow; 

It allows you to expand your customer base and reach new markets. 

2]- to retain current customers,

Retaining current customers is key to maintaining a healthy business; 

It keeps your customer base intact and reduces the costs associated with acquiring new customers. 

3]- to make more money from current customers. 

And making more money from current customers is essential for any business looking to increase its profits;

 It allows you to capitalize on the investment you’ve already made in acquiring those customers. 

All businesses should have these 3 main goals in mind as they work to achieve success. 

By focusing on each of these 3 main goals, you can create a well-rounded marketing strategy to help your business flourish.

Business goals vs objectives

There is a lot of confusion about the difference between business goals and objectives, and it’s understandable. 

1] Business goals are broad statements that describe the overall purpose of your company;

And the Business goals examples include;

– to increase profits

– to become the leading provider of XYZ service.

– improve customer satisfaction ratings by 25%

While 

Objectives are specific goals that help you achieve your business goals. 

They are measurable, time-based targets, and the objectives examples include;

– increase profits by 25% by the end of 2023 

– attract 100 new customers in the next three months.

– open five new accounts in the next 60 days

And it is important to set both business goals and objectives if you want to be successful. 

2] Business goals provide a long-term focus for your company.

While 

Objectives help you track progress and ensure you are on track to achieve your goals.

NOTE:

We recommend Dashthis -a digital marketing reporting software that enables you to create a KPI dashboard.

Dashthis is a simple, easy-to-use, and powerful KPI dashboard software that lets you create and maintain your own KPIs and dashboards.

CLICK HERE To Get the 10 FREE KPI dashboards for 15 Days.

No worries! we don’t need your Credit card information!

CLICK HERE To Get the 10 FREE KPI dashboards for 15 Days.

2. Sales and Marketing Metrics 

Secondly, Sales and Marketing Metrics should be in a KPI dashboard.

What are the two types of market metrics?

The two types of market metrics: 

1]- qualitative market metrics

2]- and quantitative market metrics. 

1]- qualitative market metrics

Qualitative market metrics are those that cannot be expressed in numerical terms. 

They include things like customer satisfaction, perceptions of quality, and brand equity. 

2]- quantitative market metrics. 

Quantitative market metrics, on the other hand, can be expressed in numerical terms. 

They include things like; 

– revenues,

– profits, 

– market share,

– and customer acquisition rates. 

Which type of metric is more important depends on the particular business. 

For some businesses, qualitative metrics may be more important because they are trying to build a strong brand image. 

For other businesses, quantitative metrics may be more important because they are trying to increase their market share.

why are metrics important in marketing

1] Metrics are important in marketing because they allow you to track and measure the success of your campaigns.

They tell you how well:

– your campaigns are performing, 

– your website is converting visitors into customers,

– and how well you’re engaging your audience. 

2] Metrics are important in marketing because they provide information essential for making data-driven decisions that will help you improve your marketing efforts.

What metrics are important in sales? And Why are these metrics important in sales?

Measuring the success of your sales team is critical to improving and optimizing your sales process. 

But which metrics should you track? 

Here are three of the most important metrics in sales. And Why are these metrics important in sales?

 1] Revenue

 Of course, revenue is the most important metric in sales. 

Tracking revenue over time can help you measure the success of your sales team and identify areas where they need improvement. 

2] Sales Cycle Length 

The length of your sales cycle is a good indicator of how efficient your sales process is. 

If your cycle is too long, it may mean that you are not reaching potential customers early enough in the buying process.

Or that you are not making it easy for them to buy from you. 

Tracking this metric will help you to identify and fix any problems in your sales process. 

3] Sales Productivity 

Measuring your sales productivity is essential for understanding your sales team effective. 

Tracking this metric will help you to identify underperforming members of your team, and optimize their performance. 

3. Financial Metrics 

Thirdly, Financial Metrics should be in a KPI dashboard.

What are good financial metrics?

Good Financial metrics are the key indicators that help to identify the financial success of your business, including revenue, costs, and profit. 

They give you an idea of where your business is heading.

What are the three metrics used to measure financial performance?

Financial performance is a company’s overall financial health and how it is doing relative to its goals. 

To measure financial performance, you need to track three key metrics: 

1]- revenue,

2]- profit,

3]- and cash flow. 

1]- revenue,

Revenue is the total amount of money a company brings in from sales of its products and services. 

2]- profit,

Profit is the difference between revenue and expenses. 

In other words, focus mainly on the difference between revenue and the cost of goods sold;

Or the cost of producing the products or services a company offers.

3]- cash flow. 

Cash flow is the cash entering and leaving a company over a certain period.

Within cash flow, mainly focus on the Net income.

And Net income is the amount of money left over after all expenses, including taxes and interest payments. 

Understanding these three metrics is essential for any business owner or investor. 

By tracking these three metrics, you can get a good understanding of a company’s financial health and whether it is on track to meet its goals.

Why are financial metrics important?

Financial metrics are important for the company to understand its financial position, evaluate its performance and make decisions about the future.

NOTE:

We recommend Dashthis -a digital marketing reporting software that enables you to create a KPI dashboard.

Dashthis is a simple, easy-to-use, and powerful KPI dashboard software that lets you create and maintain your own KPIs and dashboards.

CLICK HERE To Get the 10 FREE KPI dashboards for 15 Days.

No worries! we don’t need your Credit card information!

CLICK HERE To Get the 10 FREE KPI dashboards for 15 Days.

4. Operational Metrics 

Lastly, Operational Metrics should be in a KPI dashboard.

what are operational performance metrics?

Operational performance metrics are a set of measurements that are specifically designed to assess the working performance of an organization.

In other words, Operational metrics are metrics that tell you whether your operational performance is good or bad.

Examples of Operational Metrics

Here are 5 examples of operational metrics:

1] Activity Ratio: 

A good example of an operational metric is the Activity Ratio; 

Activity ratio is a measurement of how much time is spent on production versus administrative tasks in an organization. 

It is calculated by dividing the total production hours by the total hours worked and multiplying by 100%.

2] Cycle Time: 

Another example of an operational metric is the Cycle Time; 

Cycle time is a measurement of how long it takes for a process to complete from start to finish. 

It can be calculated by dividing the total number of tasks in a process by the number of people working on that process and multiplying by 100%.

3] Efficiency: 

Another example of an operational metric is Efficiency; 

Efficiency is a measurement of how much work is accomplished to input resources consumed;

And such as labour, energy, or materials used in production.

4] availability rate

A good example of an operational performance metric is the availability rate;

Availability rate measures the percentage of time that a machine is functioning properly. 

5] wait time

Another example of an operational performance metric is the wait time;

Wait time measures the time it takes for customers to receive service from employees at a company. 

Why are operational metrics important?

Here are 4 reasons why operational metrics are important: 

1) Operational metrics are important because they help you know how your products are doing. 

They tell you what is working and what is not.

2) Operational metrics are important because they allow you to identify the root cause of a problem in advance;

So you can fix it before it becomes a bigger issue.

3) Operational metrics are important because they provide insights into your customer experience;

And show how they engage with your company over time.

4) Operational metrics are important because they help you understand the effectiveness of your marketing campaigns.

— By providing data on where they are being seen, when they are being seen, and by whom.

 

Other features of KPI include;

1] Relevance 

– The KPIs on your dashboard should be relevant to your company’s goals and objectives. 

2] Timeliness 

– Your KPIs should be updated regularly to reflect current progress. 

3] Comparability 

– The KPIs on your dashboard should be comparable so you can track progress over time. 

4] Actionability 

– The KPIs on your dashboard should be actionable so you can take corrective action when necessary. 

5] Granularity

 – The KPIs on your dashboard should be granular enough to provide meaningful insights. 

 

Conclusion 

A KPI dashboard is a visual representation of your company’s metrics that enables you to make informed decisions about the direction and management of your business. 

KPIs can vary greatly depending on the type of business, so carefully plan your dashboard before designing it. 

Be sure to include all relevant metrics that are necessary for making informed decisions about the direction and management of your business.

NOTE:

We recommend Dashthis -a digital marketing reporting software that enables you to create a KPI dashboard.

Dashthis is a simple, easy-to-use, and powerful KPI dashboard software that lets you create and maintain your own KPIs and dashboards.

CLICK HERE To Get the 10 FREE KPI dashboards for 15 Days.

No worries! we don’t need your Credit card information!

CLICK HERE To Get the 10 FREE KPI dashboards for 15 Days.

Related Articles