KEY PERFORMANCE
INDICATORS
KEY PERFORMANCE INDICATOR
Fundamentals of performance measurement and KPI management
Key Performance Indicators
KPIs For Each Object
KPI Inforgraphic
Fundamentals of performance
measurement and KPI management
Performance management
Performance measurement
Performance management
Definition
Talking action based on the results of the evaluation
to ensure target results are achieved
Performance management cycle
A corporate management tool that helps managers
monitors and evaluate employee’s work.
Creating an environment where people can perform
to the best of their abilities and produce the
highest-quality work most efficiently and effectively.
Reflects the approach one entity has towards
performance
Performance management cycle
Performance management levels
Theory informing performance
management
The overarching discipline that deals with
performance
Performance management cycle
A part of the performance
management process or strategy, it is
shorter and utilizes a continuous substep such as:
- The formulation of plan
- Actively monitoring implementation
- Readjusting the plan
- Performance measurement
- Capability development
Performance management cycle
- Setting performance expectations and goals for
groups and individuals to channel their efforts
toward achieving organizational objectives.
- including the measures that will be used to
determine whether expectations and goals are
being met.
- Involving employees in the planning process
helps them understand the goals of the
organization.
Performance management cycle
- Consistently measuring performance and
providing ongoing feedback to employees
and work groups on their progress toward
reaching their goals.
- Providing the opportunity to check how
employees are doing and to identify and
resolve any problems early.
Performance management cycle
Developing
- Increasing the capacity to
perform through training, giving
assignments that introduce new
skills or higher level of
responsibility, improving work
processes
- Development efforts can
encourage and strengthen good
performance and help
employees keep up with changes
in the workspace
Performance management cycle
- Evaluating employee or group
performance against the elements
and standards in an employee’s plan.
- Summarizing that performance
- Assigning a rating of record
Performance management cycle
Providing incentives to and recognition of
employees, individually and as members of
groups, for their performance and
acknowledging their contributions to the
agency’s mission.
Performance management levels
Theory informing performance management
Performance measurement
Definition
Principles of performance measurement
Challenges in performance measurement
Evaluation of results
A sub-process of performance
management that focuses on
identification, tracking and
communication of performance results
by the use of performance indicators
Principles of performance measurement
Transparency
Employee
Development
and
empowerment
External
Environment
Congenial
work
environment
Values
Challenges in performance measurement
Individual level:
- Individual performance plans
- Performance evaluations
- Performance conversations
Organization level:
- System Map
- Desired State of Evolution
- Strategy Map
- Performance Scorecard
- Organization KPI catalogue
- Portfolio of Initiatives
- Dashboard
- Performance review meetings
Personal level
- Personal performance plan
- Performance reviews
Departmental level:
- System Map
- Desired State of Evolution
- Strategy Map
- Performance Scorecard
- Organization KPI catalogue
- Portfolio of Initiatives
- Dashboard
- Performance review meetings
KEY PERFORMANCE INDICATORS
KEY PERFORMANCE INDICATORS
Metric, KPIs, KRIs and analytics
Definition
Type Of KPIs
Characteristics of good KPIs
KPI Lifecycle
KPI Use Case Scenarios
Metric, KPIs, KRIs and analytics
METRICS
Metric is something we can
measure, a value, or a quantity
# Air temperature
# Air humidity
# Air purity
# Square meters per room
# Employees
# Highway kilometres
# Employee age
# Working hours per year
$ Budget
KEY PERFORMANCE INDICATORS
% Net promotor score
% Budget variance
% Hospital bed occupancy rate
$ Revenues
$ Operation costs
# Patient consultation time
# Caseload per physician
KEY RISK INDICATORS
Key risk indicators are metrics used by organization to provide an early signal
of increasing risk exposures in various areas of the enterprise
ANALYTICS
Refers to extracting key information from
large volumes of data in order to:
- Predict future trends
- Identify patterns
A selected indicator considered
key for monitoring the
performance of a strategic
objective, outcome, or key results
area important to the success of
an activity and growth of the
organization overall
A measurable expression for
the achievement of a
desired level of results in an
area relevant to evaluates
entity’s activity
KPIs make objectives quantifiable,
providing visibility into the performance of
individuals, teams, departments and
organization and enabling decision makers
to take action in achieving the desired
outcomes. Typically, KPIs are monitored
and dashboards, scorecards and other
forms of performance report
A description of the project’s
objectives in terms of
quality, target groups, time
and place
TYPES OF KPIS
KPIs by trend
The report shows the key performance
indicators trend for all the monthly
periods of the current year
TYPES OF KPIS
Qualitative KPIs
Quantitative KPIs
Qualitative KPIs measure non-numerical
data and are described as "descriptive"
characteristics or subjective
interpretations of a person's opinions.
Qualitative KPIs are typically based on
qualitative data and are not measured in
numerical terms
- Customer satisfaction levels: measured
through surveys or feedback
- Quality of customer service: measured
through customer feedback or ratings
- Brand perception: measures the way
customers perceive your brand
Quantitative KPIs measure data in
numerical terms, such as sales figures or
website traffic. They are often used to
track progress towards specific numerical
targets, and are easily measurable and
comparable over time
- Sales revenue: the total amount of
money generated from sales of
products or services over a specific
period of time
- Average order value: measures the
average value of each customer order
- Inventory turnover rate: measures how
quickly a company is able to sell its
inventory and restock
TYPES OF KPIS
Leading indicators = Measure things
that address what can create future
value
Advantage: Being predictive
allows the organization to take
better decisions to address future
events.
Challenge: May be difficult to
identify and capture results
Example: %Employee
engagement, # Innovation ideas
Lagging indicators = Look back at past
performance
Advantage: Easy to identify and to
measure/ collect results
Challenge: Indicates past
performance, does not reflect
current activities.
Example: $ Sales revenue, $ Free
cash flow, $ Net profits
TYPES OF KPIS
Input metrics: Measure the quantity and sometimes the quality of resources provided for project/organization.
Example: $Budget, #Grants, $ Bank loan funds,…
Process metrics: Measure the quantity and sometimes the quality of the activities required to provide certain expect
output.
Example: # On time delivery of vaccination programs (health project),…
Output metrics: Measure the quantity and sometimes the quality of the goods or services created or provided
through the use of inputs.
Example: # Clients vaccinated (health project),…
Outcome metrics: Measure the quantity and quality of the results achieved through the provision of goods and
service.
Example: % Incidence of disease, % Mortality rate,…
Characteristics of good KPIs
Relevant
Attributable
Clear definition
Responsive
Easy to understand and use
Allow innovation
Comparable
Statistically valid
Verifiable
Timely
Cost effective
KPI LIFECYCLE
Stage 1: Establishment
Stage 2: Use
Stage 3: Evolution
Needs identification
Selection
Documentation
Visualization
Activation
Data gathering
Analysis
Analysis
Reporting
Reporting
Maintain
Decision making
Decision making
Refresh
Communication
Communication
Conserve/Suspend
Documentation refresh
Documentation refresh
Supercede
KPI USE CASE SCENARIOS
Organization Strategy
Context: Scorecards to monitor the achievement of strategy, through KPIs.
Positive aspects: KPIs are mentioned in 5 perspectives: Financial, Customer, Operations and
people. Traffic lights are used enable immediate understanding of performance data.
Recommendations: Link KPIs to more specific strategic objectives, not only to goals.
Comments: The scorecard contain some of the most important fields to track performance
Organizational Operations Strategy
Context: Dashboards to provide a more detailed overview of corporate performance
Departmental Strategy
Context: Scorecards to monitor strategy at operational level.
Departmental Operations Tracking
Context: Dashboard to offer visibility intro
key processes
Positive aspects: KPIs are visualized in both
tables and graphs with the purpose to
enhance data meaning
Recommendations: Cluster KPIs around key
processes or activities.
Comments: The interactivity of the
dashboard enables managers to access
different data sets with ease, supporting
timely decision making
Alliances/joint ventures relationship scorecard
Context: Scorecards to monitor performance of alliances or other business partnerships.
Positive aspects: KPIs are linked to clear objectives established for the alliance.
Recommendations: Standardize KPI names and allocate a section to comment KPI results.
Comments: Key value drivers for the alliance were identified, such as relationship value or strength
that cluster the scorecard objectives and help managers focus on what matters the most
Portfolio And Project Management
Context: KPIs to monitor the performances in
terms of managing more projects.
Positive aspects: KPI results are displayed
through graphs, in the format of a dashboard.
Recommendations: Replace pie charts, with
more effective data visualization tools.
Comments: Dashboards are very useful in
managing a portfolio of projects as they
provide key information in order to ensure
initiatives are finalized on time, within budget
and resources are used efficiently.
Project Management
Quality/Process Management
Context: KPIs to measure quality and
compliance with standards, as well as to
support process optimization.
Positive aspects: Process mapping is used
to standardize activities and for support
process optimization.
Recommendations: Establish KPIs to
assess the quality of processes
Quality/Process Management
Process improvement
Service Level Agreement (SLA)
Context: KPIs to ensure the quality of
services delivered – whether is about third
party providers or internal providers.
Positive aspects: Clear targets are
established for each performance
measure.
Recommendations: Standardize KPI names
for more clarity.
Comments: Internal SLAs can be used for
both internal and external providers.
Supplier Performance Management
Context: KPIs to monitor
performance of suppliers, for a
streamlined supply chain
Employee Performance Management
Context: KPIs and scorecards to evaluate
performance of each employee in the
organization.
Fitness Training
Context: KPIs to track performance of
athletes.
Positive aspects: The dashboard allows
target setting for KPIs and enables you to
visualize progress in time.
Comments: A clear perspective on current
fitness performance contributes to better
planning workouts
Personal Management
Context: KPIs to monitor personal
achievement, to track daily activities, to
improve time management.
Positive aspects: It provides an instant
overview upon the performance achieved in
several personal areas.
Recommendations: Structure the KPIs under
objectives and assign specific targets that
need to be attained.
Comments: Common personal areas to be
monitored are finances, household
management, professional development,
time management, social activity –
interactions with friends and family.
Sustainability performance reporting
Context: KPIs to assess the environment
impact of activities. Results are presented
in sustainability scorecards or in dedicated
performance reports.
Positive aspects: There is a trend in
representing performance data in annual
reports through infographics.
Recommendations: Structure the KPIs
under sustainability objectives and outline
specific targets that are desired.
Comments: Transparency in KPI results can
positively contribute to brand image.
Benefits realization management
Context: Benefit realization is an important
part of project management and should rely
on KPIs that clearly outline expected
benefits.
Positive aspects: KPIs are accompanied by
target value.
Recommendation: KPI names should be
standardized.
Comments: Benefits realization
management through KPIs provides the
necessary visibility in assessing investment
projects.
General operational reporting
Context: KPIs are commonly used by
departments or teams to report the
performance of their activities.
Positive aspects: KPI results are
accompanied by comments to facilitate
understanding of current performance
level.
Recommendation: Structure the KPIs under
sustainability objectives and outline specific
targets that are desired.
Comments: Operational reporting must be
focused on providing essential data for
decision making
Audit
Context: KPIs can be used to assess the
quality of the audit department, but also to
analyze how an organization is coordinated.
- The checklist from the example is used to
evaluates the KPIs used by a set of
organizations to track if their projects
deliver the expected outputs.
- The audit aims to identify the mix between
qualitative and quantitative KPIs and
whether they had clear target assigned.
Compliance reporting
Context: KPIs are commonly used to report
compliance with regulations.
Positive aspects: KPIs are clustered in
different perspectives.
Recommendations: KPIs names should be
standardized.
Comments: Reporting to governmental
institution can also serve for organizations
as a benchmarking technique if results are
published.
KPI DATA GATHERING SOURCES
KPIs FOR EACH OBJECT
HR KPIs
Financial KPIs
CRM KPIs
Financial KPIs
Gross profit margin
This is an intermediate — but critical — measure of the profitability and efficiency of the company’s core
business.
It’s calculated as gross profit divided by net sales, and is usually expressed as a percentage.
- Sales Revenue
- Cost of Sales
Gross Profit Margin = (Sale revenue – cost
of sales)/ Sale revenue *100
Financial KPIs
Net Profit
Margin
This is a comprehensive measure of how much profit a company makes after accounting for all expenses
Net income is often regarded as the ultimate metric of profitability — the “bottom line” — because it’s the
profit remaining after deducting all operating and non-operating costs, including taxes.
- Net income
- Revenue
Net Profit Margin = Net income/Revenue *
100%
Financial KPIs
Accounts payable turnover ratio
The Accounts Payable Turnover is a KPI that measures the rate your company pays off suppliers and other
expenses.
This is an important indicator for understanding your company’s liquidity and ability to manage cash, by reflecting
the number of times your business paid off its accounts payable and short-term debt over the course of a period of
time (month, quarter, year).
- Total purchase
- Accounts payable
Accounts Payable Turnover Ratio = (Total
Purchases / Average Accounts Payable)
Financial KPIs
Accounts Receivable Turnover Ratio
The Accounts Receivable Turnover is a KPI that measures the rate at which your company collects on outstanding
receivable accounts.
This indicator measures the amount of times that your account receivable has been converted to cash during a certain
period of time (month, quarter, year). Monitoring this metric is essential to ensure that accounts receivable is collecting
from customers in a timely manner.
- Credit sales
- Accounts Receivable
Accounts Receivable Turnover Ratio = (Net
Credit Sales / Average Accounts
Receivable)
Financial KPIs
Current Accounts Receivable and Accounts Payable
The Current Accounts Receivable and Accounts Payable metric displays the current money owed to your business as
well as the amount your business owes creditors.
This key accounting metric can help business owners, bookkeepers, and accountants track the amount of income
waiting to be collected and the expenses that have not yet been paid.
•Accounts Receivable: Money owed to a company by its debtors
•Accounts Payable: Money owed by a company to its creditors
•Debtor Days: How long it takes companies to collect money
•Creditor Days: How long it takes a company to pay its creditors
•Keeping a consistent amount of accounts receivable and accounts payable
each month
•Keeping low debtor and creditor day averages
Financial KPIs
Current Ratio
Current Ratio measures your organization’s ability to meet your short-term financial obligations (short term
refers to one year or less).
This ratio is an indicator of your company’s liquidity and uses balance sheet accounts that fall under current
assets (cash and cash equivalents, accounts receivable, etc) and current liabilities (accounts payable, short
term debt, etc), to help you understand the solvency of your business.
- Current assets
- Current liabilities
Current ratio = Current assets / Current
liabilities
Financial KPIs
Debt to Equity Ratio
The Debt to Equity Ratio is a metric that measures how your organization is funding its growth and how effectively you
are using shareholder investments.
A high Debt to Equity Ratio is evidence of an organization that’s fuelling growth by accumulating debt.
This is a common practice, as outside investment can greatly increase your ability to generate profits and accelerate
business growth.
- Total Liabilities
- Shareholders Equity
Debt to Equity (D/E) = (Total Liabilities) /
(Shareholders Equity)
Financial KPIs
Income and Expenses (Last 12 Months)
The Income and Expenses metric displays the amount of money earned and spent by a business over a 12 month
period.
This key accounting metric can help business owners, bookkeepers, and accountants track the monthly earnings
and spend of a business.
•Income: The amount of money received by the business
•Expense: The cost required for running the business
•Profit: The amount of money the business makes after
deducted expenses from income
•Having more income than expenses, meaning a profit for
the business
•Keeping expenses lower than overall income
Financial KPIs
Inventory Turnover Ratio
The Inventory Turnover is a KPI that measures how often, in a given time-period, your organization is able to sell its
entire inventory.
Inventory Turnover is an important efficiency metric and is helpful in analyzing pricing, product demand, and, of
course, inventory purchase and costs.
It is also a critical tool when selling perishable goods, where the potential for waste is high.
-
Cost of Goods Sold
Beginning Inventory Value
Ending Inventory Value
Inventory turnover ratio = (Cost of Goods
Sold) / ((Beginning Inventory Value +
Ending Inventory Value) / 2)
Financial KPIs
Profit and Loss Report
The Profit and Loss metric displays the business's income, cost of sales, and total expenses.
This key accounting metric can help business owners, bookkeepers, and accountants easily calculate the
business's net profit.
•Income: The amount of money received by the business
•Expense: The cost required for running the business
•Net Profit: The amount of money the business makes after
deducting cost of sales and expenses from income
•Having more income than expenses and cost of sales, meaning
a profit for the business
•Keeping expenses and cost of sales lower than overall income
Financial KPIs
Quick Ratio
Quick Ratio measures the ability of your organization to meet any short-term financial obligations with assets that
can be quickly converted into cash.
This ratio offers a more conservative assessment of your fiscal health than the current ratio because it excludes
inventories from your assets, removing assets that may not be easily converted to cash.
-
Cash
Short-term marketable investments
Receivables)
Current liabilities
Quick ratio = (Cash + Short-term
marketable investments + Receivables) /
(Current liabilities)
Financial KPIs
Recent Payments
The Recent Payments metric displays the most recent payments to your business, which company has paid, and
the amount paid.
This key accounting KPI can help business owners, bookkeepers, and accountants track which accounts have been
paid in full and which accounts still have to be collected.
Invoice Number: The individual tracking
number that relays to each account
Keeping a consistent flow of recent
payments to ensure debtor days are short
Financial KPIs
Return on Equity
• The Return on Equity KPI measures your organization’s ability to generate revenue for each unit of shareholder
equity.
• The return on equity ratio not only provides a measure of your organization’s profitability, but also your
efficiency. A high or improving ROE demonstrates to your shareholder’s that you’re using their investments to
grow your business.
- Liabilities
- Shareholders Equity
Debt to Equity (D/E) = (Total Liabilities) /
(Shareholders Equity)
Financial KPIs
Vendor Expenses
The Vendor Expenses metric displays the current payments due to your vendors.
This key accounting KPI can help business owners, bookkeepers, and accountants track what they currently owe
their vendors and what they have paid vendors in the past.
•Vendors: Anyone who provides goods or services to a
company or individuals
•Expenses: The cost required for something; the money
spent on something.
•Keeping a consistent flow of payments to vendors.
Financial KPIs
Working Capital
The Working Capital metric measures your organization's financial health by analyzing readily available assets that
could be used to meet any short-term financial liabilities.
Working capital includes assets such as on-hand cash, short-term investments, and accounts receivable to
demonstrate the liquidity of the business (the ability to generate cash quickly).
•Assets: An economic resource that has cash value.
•Liability: A financial obligation that stems from previous
transactions, such as a purchase order.
•When expressed as a ratio, a working capital greater than 1
indicates that your company can cover its current liabilities.
HR KPIs
Turnover Rate
Turnover refers to the percentage of employees that have left over a certain period of time.
Having a high turnover rate is tough on company culture and usually leads to a less motivated and productive
workforce.
•Assets: An economic resource that has cash value.
•Liability: A financial obligation that stems from previous
transactions, such as a purchase order.
•When expressed as a ratio, a working capital greater than 1
indicates that your company can cover its current liabilities.
HR KPIs
Retention of talent
Retention of talent is closely related to the turnover rate. However, rather than measuring the number of employees
who left, this KPI measures the number of employees who stayed, or were retained by the organization.
Understanding the average employee retention rate in an organization is important for workforce planning, recruitment,
and overall business strategy. Like turnover rate, retention rates may provide insight into other factors such as the
remuneration rate or the labor climate. When talent leaves, HR spends valuable time and resources recruiting to fill the
position.
- Remaining headcount during a set period
- Headcount at the start of the period
(Remaining headcount during a set period ÷ Headcount at
the start of the period) x 100.
HR KPIs
ABSENTEEISM RATE
The first of our HR metrics measures the average absenteeism rate as a percentage of the total working days
among the entire workforce. It is a highly important employee engagement KPI as it illustrates the employee’s
motivation and engagement in his work and more generally in the organization. Studies have shown in the past
that workers with a low motivation and engagement are much more likely to call in sick or skip some days of work.
It is important to watch this metric over time and to reduce it, because it will inevitably impact your business: be it
the company atmosphere or the overall productivity, in the end your finances and the general well-being of the
business will be at risk.
- Number of Unexcused Absences
- Total Time Period
((Number of Unexcused Absences) / Total Time Period) x 100
HR KPIs
OVERTIME HOURS
Overtime hours are a great indicator on many levels, but have
to be interpreted differently depending on the context. A
sudden rise in overtime hours might translate a temporary
higher volume of orders, or an economic growth. They can
show the dedication of your workforce as well as flaws in
work processes, or maybe an understaffed workforce that has
to deal with a high pressure. This will directly impact another
of the HR metrics we have seen previously: the absenteeism
rate. Indeed, if people do not mind working overtime every
now and then, an amount of overtime hours that goes
through the roof and a permanent high workload will
decrease both motivation and employees’ satisfaction, which
maybe will result in an absenteeism rate increasing.
HR KPIs
TRAININGS COSTS
Here is a Human Resources KPI example used when you
want to measure how much you have invested onboarding
new hires and upgrading one’s education. It is a helpful
metric to track employees’ development costs, and make
smarter decisions when it comes to developing their skills
set after they have been hired. However, training costs
should not be limited to new hires – more and more
workers today wish they had a better job development
and wish for a continuous learning in their position.
Investing in an employee for him/her to develop his/her
already acquired skills, or new ones, is an option often too
little considered by HR management. Often enough, the
return on training costs is greater than the initial
investment.
HR KPIs
EMPLOYEE PRODUCTIVITY
The Overall Labor Effectiveness is a very interesting and complete HR KPI, that takes several dimensions into
accounts when measured thoroughly. It is usually calculated by dividing the total sales by the number of
employees. But for a deeper analysis, it is good to consider the components that have effect on the productive
output: the availability, ie. the amount of time where employees are actually working; the performance, or the
amount of product delivered; and finally the quality, or the number of perfect / saleable products produced during
that time. It is more of a manufacturing-oriented approach that can nonetheless be applied to other sectors.
Beyond reviewing workforce performance, productivity measurements can help them understand how much they
have done and how well they did it, and adjust their ways of working when needed.
- Value of Goods and service produced
- Input Man Hour
Value of Goods and service produced/Input Man Hour
HR KPIs
COST PER HIRE
that measures the amount of resources you invest for each new employee you need. It covers all the costs from
recruiting (advertisement / marketing, referral incentives, time cost of recruiter reviewing and selecting CVs, then
conducting interviews) to training (time cost of manager / instructor, materials, and time cost of a new employee).
These costs pile up rather quickly and heavily on a company’s budget, this is why hiring shouldn’t be taken lightly –
but without employees, work cannot be done and business cannot be run. And this is in the end, the bottom line
of every business: investing in talents that will bring even more value back. So even if the investment might make
the finance department frown, the potential of talent acquisition is always worth it.
- Total internal costs
- Total external costs
- Total # of hires
(Total internal costs + Total external costs)/Total # of hires
HR KPIs
TIME TO FILL
Another easily understandable HR performance metric as the definition lies in its name. This metric simply
measures the time elapsed between the moment a job offer has been posted and the moment a new employee
has been hired for that specific position. Just like the Recruiting Conversion Rate, it tracks how efficient the hiring
process is in terms of time resources spent to fill a vacancy. It also informs to do realistic business planning, as layoff or someone quitting has to be handled and anticipated when possible. A low figure is always better; however,
it shouldn’t be the main criteria. Investing time is important to find the best fit and a good hire might cost in the
beginning but the benefits will always better greater afterwards.
- Day candidate accepted offer
- Day candidate entered the pipeline
Day candidate accepted offer - Day candidate entered the
pipeline
HR KPIs
DISMISSAL RATE
The turnover rate is influenced by 2 main factors:
terminations by the employee or employer. Additionally,
there are other influencing factors, such as the expiration
of employment contracts, retirements, resignations due to
incapacity to work, etc. In order to monitor the quality of
your recruiting measures in a transparent and
comprehensible way, you can use the dismissal rate, one of
the critical KPIs for human resources that focus on lost
talent. Look at it from different angles, for example,
according to the length of employment, teams,
departments, or separately for your junior specialists, as
shown in our template.
HR KPIs
FEMALE TO MALE RATIO
This HR metric is not often used and remains a bit of a
taboo in many companies. Measuring the ratio of female
to male workers, especially in top-management positions,
can tell a lot about a company. Some industries are very
gender-biased (IT and engineering are overcrowded with
men, while caring and nursing tend to be in majority
female). This has a historical and societal explanation, but
as our societies evolve it is important to be aware about
and encourage diversity – be it gender diversity, but also
nationality-wise and curriculum-wise. The more horizons
you gather, the broader the view and the more diverse the
approaches and innovation possibilities you will have. That
is an incredible competitive asset in our globalized
economies.
HR KPIs
AVERAGE TIME STAY
This HR metric tracks the average number of weeks, months or years an employee stays within a company. It is
efficient to measure both retention and employee satisfaction with his position, his team and/or managers. You
already know how much hiring and training a new employee costs – so the longest the time he or she stays, the
better! That way, you can earn greater return on your investments. This metric is even more powerful if measured
alongside other KPIs like the Employee Turnover: a short time stay combined with a high turnover does not
announce anything good and the reasons for that should be assessed as soon as possible.
- Sum of month worked by all current employees
- Number of current employees
Sum of month worked by all current employees/Number of
current employees
CRM KPIs
Customer Lifetime Value
Customer Lifetime Value is the average total revenue your business receives from your customers as long as they
continue to do business with you.
It is one of the most important CRM KPI metrics as it tells you how much average revenue to expect from your
customers, and accordingly assign sales and marketing budget for customer acquisition.
- Total revenue
- Number of purchase
- Number of unique customer
- Customer lifespans
- Average purchase value = Total revenue/ Number of purchase (1)
- Average purchase frequency = Number of purchase / Number of
Unique customer (2)
- Average customer lifespan = Sum of customer lifespans / Number of
unique customer (3)
=> Customer lifetime value = (1) *(2)*(3)
CRM KPIs
Customer Acquisition Cost(CAC)
Customer Acquisition Cost is the average total cost incurred to acquire each customer. CAC is one of the most
popular CRM KPI metrics as it tells you much it costs to acquire each customer.
Make sure you take into account all fixed (e.g salary, software licenses) and variable costs (e.g travel, dining)
incurred in sales & marketing activities, while calculating CAC.
- Sales and marketing cost
- Number of new customer
Customer Acquisition cost = total Sales and
marketing cost/Number of new customer
CRM KPIs
Net Promoter Score (NPS)
• Net Promoter Score measures the customers satisfaction for your business. It tells you how likely your
customers are to recommend your products/services to others.
• NPS score is generally measured on the scale of 0-10 – 0-6 means ‘Not likely to recommend’, 7-8 means ‘May
recommend’ and 9-10 means ‘Very Likely to Recommend’.
• You can easily calculate NPS score by sending customer survey emails. Ask your customers to rate your business
on a scale of 0-10, 10 being most likely and 0 being least likely.
CRM KPIs
Churn Rate
Churn Rate (also known as customer turnover or customer attrition) measures the percent of your customers that
leave your business every month.
- Number of customers at the end of period
- Number of customers acquired during
period
- Starting number of customers
- Number of customer lost
Churn rate = (Number of customer
lost/Starting number of customers)*100
CRM KPIs
Conversion Rate
Conversion rate is the percent of prospects who have performed a specific action, such as scheduling a demo,
signing up for free trial, used your product/service at least once, made a payment, etc.
- Number of conversations
- Total visitors
KPI INFORGRAPHIC
1
Bar charts
2
Bullet graphs
3
Dial charts
4
Line charts
5
Pie charts
6
Sparkline
Bar charts
For comparing
individual values
Bullet charts
To compare
actual results
with targets
Dial charts
Useful for
signalling
threshold values
Line charts
Useful for
tracking
trend
Pie charts
Useful for
comparing
different parts
of a whole
Sparkline
Useful for
comparing
different parts of
a whole
Sparklines and bullet graphs dashboard
USBAILITY IN TERMS OF VISUAL DESIGN
USBAILITY IN TERMS OF VISUAL DESIGN
3D
USBAILITY IN TERMS OF VISUAL DESIGN
Avoid 3D graphic
USBAILITY IN TERMS OF VISUAL DESIGN
Pie charts: Inefficient use of space
USBAILITY IN TERMS OF VISUAL DESIGN
Doughnut charts = an ink saving version of pie-charts
USBAILITY IN TERMS OF VISUAL DESIGN
Avoid crowed graphs
Too much information
on one graph and
relevant data is no
longer visible
USBAILITY IN TERMS OF VISUAL DESIGN
Avoid crowed graphs
USBAILITY IN TERMS OF VISUAL DESIGN
Scales should start from 0
USBAILITY IN TERMS OF VISUAL DESIGN
Background