In the modern age, brands and businesses that benchmark their activities stand to gain an all-important edge on the competition.
Whatever your niche or industry, working with dynamic key performance indicators (KPIs) will empower you to track and improve your performance in a number of key areas, accelerating your commercial success in the process. Without data, you will only ever be ‘shooting in the dark’ when it comes to formulating strategies and making informed decisions. While there are numerous KPI examples you can choose from, you should pick only the most important ones and focus your resources on them.
That said, using the right KPIs is essential to both your immediate and long-term business activities. KPI tracking is a technique that will give you a deeper insight into the inner workings of your business - and we’re going to discuss the concept in detail.
Here, we will consider what it takes to track KPI metrics, explore the dynamics or a contemporary KPI tracker, and look at how to track KPIs.
But first, let’s ask ourselves the question, ‘What is KPI tracking?’
What Is KPI Tracking?
KPI tracking is a definitive means of monitoring your most relevant key performance indicators for increased business success with the help of modern KPI software. By measuring KPIs regularly and automatically, you can increase productivity and decrease costs.
By selecting the right KPIs for various areas of the business, it’s possible to use them to arrange as well as visualize large datasets. Doing so will not only help you to squeeze additional value from your organizational data, but it will also provide the opportunity to set performance targets and measure incremental success in vital areas of the business.
To track KPIs is to gain greater business intelligence. Through visual KPI tracking tools such as a KPI dashboard, you uncover greater insights than you ever thought possible, streamlining your organization for success in an increasingly competitive digital landscape.
In that sense, KPI tracking tools are a powerful vessel for organizational growth and evolution.
What Are The Benefits Of KPI Tracking?
Now that we’ve established what key performance indicator tracking is, let’s look at the business-boosting benefits.
If you use a KPI tracker to its full potential and work with metrics that are relevant to your business’s core mission, you will reap incredible rewards. To put this into perspective, here are the main benefits of using a KPI tracker for your business:
- Intelligence: To prevail on today’s business battlefield, making consistently informed decisions based on relevant metrics is a must. Knowing how to track KPIs will empower you to improve your business strategies in a way that will ultimately save you time and money while fostering a level of innovation that will allow you to stand out in your field.
- Benchmarking: One of the most powerful functions of committing to track KPI metrics is gaining the ability to benchmark. KPI tracking software gives businesses the tools to set informed goals and benchmarks. By setting intelligent goals for your organization, you will be able to evolve, scale, and refine your most vital processes while becoming more adaptable to change.
- Innovation: Working with KPI tracking software offers insight that empowers you to spot and uncover trends or patterns that you otherwise wouldn’t notice. When this happens, you will be able to unlock a level of creative thinking that will improve innovation throughout the business. When companies gain the ability to innovate, they often become thought leaders in their field, building trust and boosting brand awareness in the process.
- Communication: KPI reports and trackers are visual and interactive, which means that they are incredibly inclusive. KPI tracking software serves up insights that everyone within the organization can understand, which ultimately enhances interdepartmental communication while unlocking the full potential of modern data storytelling.
- Motivation: By working with a KPI dashboard to set actionable goals, you will motivate staff and specific departments to make improvements to their processes, which, in turn, will increase productivity, performance, and motivation.
What Do Most Companies Use To Track KPIs?
So, what do most companies use to track KPIs? The short answer: smart tools and technology. To track KPIs and set actionable benchmarks, today's most forward-thinking businesses use what is often referred to as a KPI tracking system or a key performance indicator report.
A KPI report is a tool that facilitates the measurement, collection, arrangement, analysis, and study of essential business KPIs over certain periods. In the digital age, a solid KPI tracking system is visual, interactive, customizable, and accessible via a number of mediums, including mobile and desktop.
By using a smart KPI tracker to your advantage, you become empowered to identify potential strengths, weaknesses, patterns, and potential areas for improvement across all key areas of the business.
Usually presented in the form of an interactive dashboard, key performance indicator reports offer a digestible representation of critical business functions, from sales and marketing to finance, fulfillment, and beyond.
With interactive business KPIs, you will be able to get in touch with data in a way that gets real results - both retrospectively and in real-time. Key performance provides a panoramic snapshot of your business’s essential activities.
KPI Tracking In Action: 3 Real-World Dashboards
Now that we’re clear on how tracking key performance indicators assist with enhanced business performance and which tools today’s companies use to track them, we’re going to look at 3 real-world dashboards that cover management, customer support, and senior marketing so you can see in more detail how to track KPIs and add value in your business operations.
1. Management KPI dashboard
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- Customer Acquisition Costs
- Customer Lifetime Value
- Sales Target
When it comes to swift and informed senior decision-making, management KPIs are invaluable. Visually balanced and populated with essential operational metrics, our dashboard is equipped with actionable insights for sustainable business success.
With KPIs that offer a panoramic snapshot of performance in areas including sales, customer acquisition costs, and customer lifetime value, this powerful CEO dashboard offers a wealth of information geared towards helping senior executives formulate strategies that ultimately streamline core business processes while improving the business’s service and customer experience (CX) offerings.
2. Customer support KPI dashboard
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- Service Level
- Support Costs vs Revenue
- Customer Satisfaction
Whether you're a senior customer service manager, a frontline agent, or a service strategist, our dynamic dashboard boasts all of the tools of insights that will allow you to set business-boosting targets while doing your job more effectively.
The logical presentation of the dashboard above offers at-a-glance access to essential customer service-centric metrics that drill down deep into functions like service levels, support costs, and overall customer satisfaction over specific time periods.
This is a powerful KPI tracking tool that helps businesses make significant improvements to their customer support strategies regardless of their sector or industry. For additional insights on different aspects of customer service, you can explore our article focused on a call center dashboard.
3. CMO dashboard
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- Sales Target & Growth
- Website-Traffic-to-Lead Ratio
- Cost per Lead
- Lead-to-MQL Ratio
- MQL-to-SQL Ratio
In today's fast-paced, ultra-competitive digital age, if you want to cut through the noise and connect with your audience on a meaningful level, being innovative and consistent with your marketing activities is essential.
As such, the job of the chief marketing officer (CMO) is challenging and demanding. From consumer demographics to website traffic, lead ratios, and beyond, when it comes to marketing, there is a colossal amount of data to sift through. Our marketing dashboard features KPIs that serve up relevant marketing metrics, allowing busy CMOs to streamline their data while extracting actionable insights at a swift glance.
For both ‘in the moment’ decision-making and long-term strategy, this robust KPI dashboard offers a wealth of information that empowers senior decision-makers to drive marketing success and innovation on a sustainable basis. But not only, with this dashboard, you can also create powerful marketing reports that will skyrocket your whole departmental performance.
“If your only tool is a hammer, every problem looks like a nail.” – Abraham Maslow
It doesn’t matter what you specialize in or what you’re selling – in the Age of Information, making your most valuable business data work for you is vital. It’s no longer good enough to simply glimpse at gargantuan chunks of organizational and hope for the best. In these modern business times, you must extract every last drop of value from the metrics that matter.
By setting the right key performance indicators for your business and working with the right tools, you will be able to measure your existing success while setting essential benchmarks and analyzing past data to gain a level of intelligence that will propel your business to the next level. But it doesn't end here; if you work with multiple clients and stakeholders, you can utilize client reporting tools and consolidate all your tracking needs under a single place.
To track KPIs is to conduct your daily, weekly, and monthly organizational activities in a way that is strategic and ensures that every move you make offers real business-boosting value. The more you measure your KPIs, the more cohesive and intelligent your company will become. And in a time when the competition is fierce, utilizing your data to its maximum capacity will set you apart from the pack.
We hope our key performance indicator tracking guide has inspired you to take charge of your data. If you want to use a professional and modern solution to track your metrics, you can signup for datapine for a 14-day trial, completely free!