Everything you should know about business KPI
Everything you should know about business KPI

Everything you should know about business KPI

In business, you must have heard about KPIs.

Everybody tells you to measure your business success through KPIs.

But nobody tells you:

What are KPIs?

Why are they non-negotiable?

Which KPIs you should measure.

Well, I got the answer for you.

For all these burning questions.

So, let’s begin.


? What are KPIs?

-KPI stands for Key Performance Indicators.

-These are metrics carefully chosen to reflect the?

-critical aspects of your company's performance.


? Why are KPIs non-negotiable in business?

1?? Precision in Decision-Making:

→ Distill complex data into actionable insights.

→ Enable informed and timely decisions.


2?? Strategic Alignment:

→ Align team efforts with business objectives.

→ Foster a unified path toward success.


3?? Early Warning Systems:

→ Act as a business radar.

→ Proactively identify and solve issues.


4?? Focus on What Matters:

→ Keep focus sharp on metrics impacting goals.

→ Navigate the sea of data with clarity.


5?? Quantifiable Growth:

→ Make growth measurable, trackable, and achievable.


Sounds interesting?


? Below are 10 Important KPIs Every Business Should Monitor:

?? Revenue Growth Rate:

→ Indicate the effectiveness of sales and marketing strategies.


?? Customer Acquisition Cost (CAC):

→ Measure the cost to gain a customer.

→ Ensure profitability aligns with acquisition efforts.


?? Customer Lifetime Value (CLV):

→ Measure total revenue from a customer.

→ Evaluate the long-term value of each customer.


?? Gross Margin:

→ Reflect the profitability of the business.

→ Calculate the % difference between revenue and COGS.


?? Return on Investment (ROI):

→ Calculate the return on various investments.

→ Ensure resources are allocated wisely.


?? Inventory Turnover:

→ Reveal efficiency in managing inventory.

→ Critical for businesses dealing with physical products.


?? Employee Productivity Rate:

→ Track team efficiency.

→ Optimize workflows and foster a high-performance culture.


?? Website Traffic to Lead Ratio:

→ Showcase the effectiveness of online presence and marketing efforts.


?? Customer Satisfaction Score (CSAT):

→ Measure satisfaction level of clientele.

→ Happy customers lead to loyalty.


?? Cash Flow Forecast Accuracy:

→ Ensure financial health.

→ Meet short-term obligations and plan for the future.

I hope this helps!

And that’s a wrap.


Stay tuned for more insights in our upcoming newsletters.

Your success is my passion and I am here to support you at every step.

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Questions? No worries!

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Got burning questions about finance, scaling your business, or cutting costs??

Shoot them my way, and our experts will provide practical advice and solutions that'll make your head spin.

Closing remark!


Don’t forget to follow me on:

LinkedIn: https://www.dhirubhai.net/in/garyjain/

I am sharing some exciting stuff there related to financial education and accounting.


Best regards,

Gary Jain

Founder, Ledger Labs

Manish Bothra

Engineers and contractors

11 个月

Thanks for posting. It's informative.

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