170 Key Performance Indicator KPI Examples & Templates

High retention rates are indicative of customer satisfaction and loyalty. Gross profit margin is the percentage of revenue that exceeds the cost of goods sold. A higher margin indicates a more profitable business and provides room for growth and expansion. This is the total income generated from sales of goods or services. It serves as the starting point for any sales analysis and is a critical indicator of business health and growth potential. This measures the total number of people who have seen your social media posts.

1. Financial KPIs often include gross profit margin, net profit margin, customer acquisition costs etc.
2. Your KPIs serve as a shared progress marker for the entire organization.
3. In this instance, the amount of tickets resolved, opened and average resolution time are all process indicators that show the performance of the customer support process.
4. These KPIs measure how a company is doing month over month, or sometimes day over day, by analyzing different processes, segments, or geographical locations.
5. For example, if overall revenue is down, a company may want to look at customer conversion or satisfaction rates in specific departments.
6. Typically, a qualitative KPI is given through opinions or feedback.
7. ’ They can be used to assess a company’s success in relation to its competitors and determine where improvements can be made.

Key performance indicators (KPIs) are the building blocks of this strategy, creating the scaffolding that allows you and your team to reach your goals. These are a type of KPI that measure the resources that are required to complete a project or process. These indicators help organisations keep track of how efficiently and effectively they are using their resources and are useful in projects of all sizes. Some examples of these include the number of team members needed, cash on hand, staff time, equipment required or project budget.

Set a timeframe for your goal so the team has a reference for mapping out their strategy. Leading metrics are tracked more frequently because changes within small timeframes help map out trends. Meanwhile, strategic KPIs help teams see whether collective endeavors work. Profit-related KPIs, for instance, can reveal whether the organization is consuming too many resources or if revenue-generating activities are effective.

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SQLs are leads that have been vetted and are considered ready for the sales team to engage. This KPI helps prioritize leads and focus sales efforts on high-potential prospects. CLV calculates the total value a customer is expected to bring to your business over their entire lifetime. This KPI helps you understand how much you can afford to spend on customer acquisition and retention. With this KPI, you can track the rate at which your social media following is growing. A steady increase in followers is a good indicator of the effectiveness of your social media strategy.

Although this metric is hard to calculate, it measures the productivity of a company’s workforce over a certain period. It can help managers understand whether they need to hire more (or fewer) people to achieve their goals. No one wants to be adrift at sea, so I wrote this list of the most common KPI examples for each department to help shape your own strategy. Each KPI example includes a definition and formula (how to measure the KPI). Higher productivity levels indicate effective team management and can lead to faster project completion. ROMI measures the effectiveness of your marketing campaigns by comparing the revenue generated to the cost of the campaign.

The Five Elements of a KPI

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Operational KPIs add clarity to the progress of specific business endeavors. While most KPIs are quantitative, some, such as customer satisfaction and employee engagement, can be qualitative. They can be measured using surveys or other feedback collection methods.

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Again, you can consider it as a percentage of the total separations or in relation to the total number of employees. This KPI is measured by dividing the number of senior functions filled through internal promotion by the total number of senior positions filled. Internal hires are often up to speed faster, reduce the risk of bad hires, and stay longer in the role. The total cost of absence is calculated by including employee pay, the cost of managing absence, and replacement cost. The latest on strategy execution, KPIs, and business intelligence, straight to your inbox.

1. High OTD rates improve customer satisfaction and can lead to increased loyalty and sales.
2. Company-wide KPIs often kick off conversations on why certain departments are performing well or poorly.
3. Many departments go through the process of developing their KPIs, only to realise at the end of the quarter that they are nowhere near them, or worse yet, forgot they had KPIs altogether.
4. The absence or absenteeism rate in the organization is typically calculated by dividing the number of working days in which the employee was absent by their total number of working days.
5. HR KPIs are an excellent way for HR to contribute to the overall organizational strategy, providing measurable benchmarks to assess how HR contributes to business success.

Higher labor productivity can key performance indicators examples indicate more efficient work processes and can contribute to lower production costs. FPY measures the percentage of products manufactured correctly the first time without the need for rework or repair. A higher FPY indicates a more efficient and effective production process. As mentioned, customer lifetime measures the total time a customer continues to purchase from your business.

Failing to do so will have a measurable, negative impact on the organization’s effectiveness. To calculate training ROI, subtract the total cost of the training from the net benefits gained, then divide that result by the total training cost. Involuntary turnover refers to the percentage of employees who leave the organization due to employer-led decisions, such as layoffs, terminations, or redundancies. This can be calculated as a percentage of either the total number of employee departures or relative to the total number of employees in the organization during the same period.

It’s important to stick to the KPIs that align with your organization’s needs. Otherwise, you might waste resources and labor tracking numbers that don’t matter. Progress not officially measured is still progress, but the employee does not get recognition because it does not fall under a KPI. It’s helpful to have systems in place to reward work that is impactful despite not affecting KPIs. Staying on top of change requests can prepare you to add necessary resources, set realistic deadlines, and inform stakeholders, thus avoiding scope creep.