KPIs, key performance indicators, are used to monitor results. To make a result meaningful, you need to put the number in proper context by telling a story about it.
For example, the Net Promoter Score is a customer loyalty KPI. The score can range from -100 to 100. To calculate the score, you use the customer survey responses. Customers who give a score of 9 and above are promoters and those who give a score of 6 and below are detractors. You subtract the % of detractors from the % of promoters to get the net number.
When communicating about the Net Promoter Score, it is good to provide some background on what it is about and how it is calculated. In addition, details about the purpose of the survey would enable your audience to gain a better perspective on the significance of the result. It helps to gauge whether action needs to be taken.
As leaders, you need to ensure the message you convey about a KPI is clear, specific, and easy to understand. Otherwise, your team won’t be able to take appropriate action to improve performance.
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