The Success of Powerful Non Financial KPIs is seen in the results of businesses that make better decisions about resource allocation.
Trends in non-financial KPIs can give valuable insights into how a business is performing, with a variety of non-financial KPIs that can be tracked, depending on the business and its sector.
Some common examples include employee turnover rates, safety records and production levels. The real value though comes from tracking the key business drivers, the sales pipeline and customer satisfaction levels.
If you have a firm handle on the source of your business then you can spot hidden dangers that might lead to future problems, and equally, it is no good having a successful sales machine if customer satisfaction levels are declining and you keep losing customers.
Taking a deep dive into the sales pipeline, website visitors, social media clicks, engagement, followers, cost per click, cost per lead, lead sources, and conversion rates per lead source will reveal the true health of your sales pipeline and allow management to take action at an early stage if any keys indicators start to deteriorate.
For example whilst sales values, pipeline value and conversion rates may superficially look healthy, a deep drill down may reveal that the fundamental drivers, website visitors’ clicks and social media engagement are slowing or declining, which in the future will adversely affect the pipeline. In this way, management can make early interventions before the damage becomes real.
Similarly, the emphasis on customer satisfaction can not be overstated, there is no point in pouring more resources into acquiring new customers if they are then leaking out of the bottom.
Customer satisfaction needs to be closely monitored and needs to be a key part of the monthly management review, its a fantastic way to highlight hidden problems, if customer satisfaction levels are trending downward, this could be an indication that the quality of products or services is declining, or that the business has stooped innovating and that products are losing relevance.
Another valuable non-financial KPI is employee satisfaction levels, poorly motivated staff will affect customer satisfaction and lead to increased staff turnover, with the resultant cost of recruiting and training replacements and the loss of the corporate knowledge base. Some further excellent examples of non financial KPIs can be found at https://www.clearpointstrategy.com/nonfinancial-performance-measures/ and https://www.cgma.org/resources/tools/essential-tools/kpis.html
There is however a great deal of difficulty in collecting the information and assimilating them into intelligent dashboards . The information is hidden in disparate departments and software packages which can be difficult to access promptly and is dependent upon how they can be retrieved and integrated into your budgets and forecasts.
The answer to this difficulty is to integrate those various software packages by direct integration into your budgeting and forecasting process. Proforecast has developed several relationships with integration partners that enable us to offer a wide range of custom integration packages so that we can quickly build custom integrations for the majority of CRM, Payroll, HR and social media packages, indeed any application with a restful API and feed the outputs into dashboards specifically designed for the individual business.
When coupled with ProForecast’s Rapier Ai forecasting tool it can become an extremely important addition to your management toolkit, please book a demonstration to discuss how we can help you.