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Many clients asked me, “How do I prioritize KPIs?”
KPIs is a tool to guide actions. The numbers are results that reflect whether your actions move you in the right direction.
Keeping this in mind, there are two ways to prioritize KPIs.
First, prioritize KPIs that are associated with your business objectives. You want to monitor these results closely because they inform whether you are achieving your goals.
For example, you want to achieve 10% market share. The KPI, market share, is a priority. By prioritizing market share, you prioritize activities directly linked to gaining market share. This gives your marketing team focus.
Second, prioritize KPIs that reflect a persistent deteriorating trend. They are problems you need to address.
For instance, the number of customer complaints has been going up 20% month over month for the past two months, which is uncommon. By prioritizing the problem, you get your team focused on correcting the problem so your revenue and brand are not impacted.
KPIs are data that guide actions. You want to prioritize them based on what is important to the business.
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