KPIs, or Key Performance Indicators, are something every business has. An example of a KPI for a fast food restaurant chain might be the number of beverage cups sold per customer. Beverage cups sold would be a more accurate KPI to restaurants, on the whole, than say gallons of soda consumed, given that refills are free. So if one was to look at the total number of gallons of soda consumed on a particular day, you might see 67 gallons downed total. However, the amount of profit you’ve made may differ slightly because you’ve had someone trying to get into Guinness World Records for “amount of soda consumed in one sitting” practicing in your restaurant. Now you have a single person who purchased one cup and drank 43 gallons of soda, and you’ve sold only 17 cups total to account for the 67 gallons of soda drank. If this is the case, it may be time to raise the price of cups.
Finding out what your business’s KPIs are, is important. If you are able to accurately track your KPIs, then everything else should fall in place. This is why it is important to learn what numbers in your company are imperative to success in your field. It is especially vital in times like these, when the economy has struggled so mightily and things can often be lost in stagnation. While sales overall might be down, tracking your KPIs can offer ways to bolster hope and prosperity.