Each industry has a set of common KPIs. For instance, retailers look at revenue per square foot. Manufacturers look at defect rate. Consulting firms look at billable hours. Are the industry KPIs sufficient for your business?
Industry KPIs are often outcome indicators.
Let’s look at revenue per square foot for retailers. Many factors impact revenue per square foot. Store traffic, conversion rate, product price, product mix, and marketing campaigns frequency are just a few of them. I call these factors drivers for high revenue per square foot.
The more the retailer understands how these drivers influence the result, it is in a better position to adapt and make impactful changes. This means it is necessary to monitor the driver metrics frequently.
While the industry KPIs might serve as starting point for monitoring performance, you need to figure out what the drivers to success are and monitor them.While the industry KPIs might serve as starting point for monitoring performance, you need to figure out what the drivers to success are and monitor them. Share on X
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