What is KPI?
KPI stands for Key Performance Indicators and are the key targets you should track to make sure you progress on your business objectives.
Key Performance Indicators specifically help to achieve a Business's strategic, financial, and operational goals and also compare them with other businesses within the same sector.
It's important that these performance measurements are customized to your Shopify store's situation and help you achieve your goals with Konigle tools.
Types of KPIs
There are a lot of different indicators that help to measure KPI. It depends on a long-term focus or measures monthly progress against a specific goal. Here are some of the most common indicators of KPIs used.
Strategic: These KPIs mainly focus on more long-term, big-picture goals within a business. A strategic KPI can be something like the revenue growth of the business.
Operational: These KPIs measure processes and efficiencies of a business and these metrics indicate how things are going day to day within a store. Basically, It's measured on a shorter timeframe than other KPIs used.
Leading or lagging: Leading indicators can help business to predict outcomes, and lagging indicates tracking what has already happened. A lagging KPI tracks past achievements and goals, such as annual sales of the products for the previous year. A leading indicator is a given prediction for a business that what will do in the future, such as customer satisfaction.
Why Are KPIs Important?
KPIs can track progress to the individual level.
It’s easier to adjust the strategy of a business to reach its goals.
KPIs help businesses objectively see how they performing period of time.
KPIs give you a realistic look at the health of your business.
You can make adjustments with successes and failures.
Hold your stores accountable.
KPIs help businesses to keep moving in the same direction.
How to measure a KPI?
The best way to measure the performance of your KPIs is using the SMART framework.
S - Specific
M - Measure
A - Achievable
R - Relevant
T - Timeframe
- Set a Specific objective and goal
- Measure progress of business towards goal
- Make your objective more Achievable
- Track Relevant goals to your business
- Mesure how much Timeframe take for achieving this goal
With this technique, you can easily set a goal for your business or store and track using KPIs.
Q. What are the 4 main KPIs?
Ans. Strategic, Operational, Leading or lagging and Functional Units are the main types of KPIs.
Q. How do you achieve successful KPIs?
Ans. With help of the SMART framework, you can easily achieve successful KPIs for your store or business.