There are many service businesses out there who need to have a good grasp on tracking their client performance because it is a direct reflection of the performance of their own service. Therefore, it is important to establish good key performance indicators (KPI) list to guide you in measuring success.
The following steps will help business owners determine what KPIs to set and track for client performance.
1. Define Goals
Goal setting is important for any business because it makes it easier to understand what metrics you need to track and this way it will make it easier to come up with the right KPIs for your business. It is important that your goals are challenging otherwise you can lose interest, but not too vague because then you might not know when you have completed them. 70% of the goals set fail because they are irrelevant and quickly forgotten and 30% fail because they are never actually executed and not inspiring enough. Therefore, it is important to set specific, measurable, achievable, relevant, and timely goals.
2. Know Leading vs Lagging Indicators
Lagging indicators are easy to measure, but very difficult to change. For example, they can be the number of clients gained per month or the amount of revenue generated within a time period. Whereas leading indicators are difficult to measure, but easier to change. Examples of leading indicators can be unique website visitors within a certain time frame or the number of clicks to convert a lead to a customer. You’ll want to focus on both of these to achieve a successful business.
3. Figure Out KPIs
By looking at your goals, you can start to think about how each goal can be measured to ensure that you are achieving it. KPIs usually depend on the type of business and how established you are. Larger businesses have different KPIs compared to smaller businesses. It is important to know that KPIs should be measurable to track revenue. Therefore, the number of social media followers gained by a business is not a good KPI. However, teaming up with a professional advertiser that provides pay per click management services is a smart idea. Specialists revealed in https://www.digitallogic.co/ppc-management/ppc-management-pricing/ that you need to track exactly what websites your advertisements had success in converting those clicks to actual revenue. This is a great tool because it can save you a lot of money in advertising costs because you only pay the website if there is an actual click on your ad and also it allows you to gather a lot of data and metrics which you can use for focusing your advertising campaigns. Other metrics about client performance can also be gathered through tools such as surveys and follow-up emails or phone calls.
4. Choose Only A Few KPIs
You do not want to go overboard with tracking useless KPIs for your business because that will take too much time and money to actually accomplish. But you should consider spending more time on a KPI that is directly focused on your goal. Thus aim at a setting between 4 to 5 KPIs for your business.
In summary, to properly track your client performance It is important to have well-defined goals that can be accomplished. For each goal set out proper performance indicators and then work your way backward, starting with sales and moving onto traffic generation. Consistency is the name of the game in tracking client performance, which will, in turn, lead to a more successful business and client satisfaction.