If you’re a business owner, chances are you’ve heard the term “KPI.” If not, KPI stands for Key Performance Indicator. A Key Performance Indicator is a metric or measure that helps show how well your company is performing against its goals. As an example, if your goal was to increase conversion rates by 10%, and after one month of implementing these strategies that number did not change, then it’s safe to say that something needs to be changed with either the strategy itself or the execution of it.
In this blog post we will discuss 4 ways on how you can improve KPIs in order to make sure that your company continues growing!
- Sometimes a number will do.
Your KPIs may be sending you all sorts of data, but sometimes the best indicator is just looking at your actual numbers and seeing how they’ve changed over time. If there’s no change or it’s going in the wrong direction, then something needs to happen quickly!
- Limit excessive detail.
We’re not saying that every metric is useless — quite the opposite in fact! However, when you are pouring over so many different stats and graphs on a dashboard, it can become difficult for anyone to determine which metrics should have their attention first. Get rid of what doesn’t matter by limiting your dashboards to only those things that truly need to be seen right now with one glance.
- Pie charts aren’t evil.
Despite the common beliefs of many, pie charts are not always a bad thing! They can help to quickly show how one metric is doing in comparison to another and provide some quick insight on what may need changing.
- Use color sparingly.
Unless your dashboard has tons of KPIs that utilize different colors for differentiation, it’s best not to use lots of colors at all because too much color can be overwhelming and make things difficult to read visually.
For example, if you were looking at a dashboard that only had five different KPIs, it would be best to not use color at all because it could make things difficult to read. However, if you have a dashboard with 10+ different KPIs, then color may be necessary.
Don’t get lost in numbers
Know which ones matter most; limit excessive detail; don’t let yourself become scared away from using graphs or pie charts; only use color if necessary/if you have other metrics with differentiating colors