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Every CEO and all managers of the departments which make up the company should at least know the five metrics we are going to present. These metrics are indicators. As such, they show the progress and results of our efforts on various levels.
- Net Promoter Score (NPS): A measurement tool that predicts a customer’s readiness to recommend our business to associates.
“Net Promoter or Net Promoter Score (NPS) is a management tool that can be used to gauge the loyalty of a firm’s customer relationships.”
- Customer Profitability (CP): A tool to measure how profitable a customer or a group of customers is for a company. Indeed, a small customer doesn’t have the same value as a big customer, but a group of small customers may even be more profitable.
- Customer Retention: This index measures customer loyalty, or in other words, how successful the company is at retaining customers.
- Conversion Rate: A tool to measure the conversion of business leads into paying customers.
- Relative Market Share: This indicator shows our market position in relation to leading competitors.
BI (Business Intelligence) is a secret to company success. BI involves collecting the necessary data to obtain all these indicators. Big Data would be useless without a system to organize the information.
Business Process software like AuraPortal helps to achieve the best results by saving costs and improving all aspects of business given that all the data it handles (coming from its database or applications, machines, sensors, etc) can be treated as KPIs. Thus, each executed process registers the values from the indicators so that its intelligence tools can automate the monitoring, the control and the analysis of all company facts and figures.
Correct analysis of the indicators and a consequential change in strategy will improve company results, in addition to automatically monitoring the effects of each change or strategy.