KPIs are used every day in business. Anything can be a KPI.
Even your Profit Margin is a KPI.
Key Performance Indicators help measure specific areas of your business. The most common KPIs revolve around Profit, Sales, and Marketing.
A typical KPI for companies is to measure their Return On Investment (ROI) for their marketing and advertising efforts.
Examples of KPIs
Using Main Street Ledger as an example, one of the KPIs we track is time. Even though we don’t bill hourly, we still need to know how long the tasks take when we work with clients. We can use a time KPI to determine if we’re pricing our services accurately for the time spent on each service offered.
Another KPI we measure is Sales Conversion; this is also used by any business that needs to track how many prospective customers turn into sales.
And a third big one we check is our ROI on our ad spend.
A popular KPI within construction is Overhead Percentage. With this one, contractors need to ensure they’re pricing their jobs correctly to cover the overhead to run their business, not just the direct costs for the construction project.
Pricing to Track KPIs
Pricing for KPI Tracking depends on the number of indicators, the complexity, and to what level we need to track the data.
If you don’t already have processes to collect the data, we can create those. If you have the processes, we will use those to assemble your analyses. With accurate KPIs you can make profitable choices for your business.