What is KPI Tracking?
KPI tracking refers to the tools and methods that companies use to monitor performance metrics.
Measuring key performance indicators (KPIs) involves capturing specific data and converting it into useful metrics that can be measured and reported in easily digestible charts and dashboards.
Every organization’s daily operations generate data that can be monitored and analyzed to measure effectiveness. These metrics can in turn be utilized to implement operational improvements.
KPIs offer insights into various aspects of an organization’s operations, and they can be customized depending on needs, industries, and even specific departments.
KPI tracking involves more than simply collecting data, however. Placing these metrics in a broader context can determine if they indicate a level of improvement or if they show a need to optimize specific areas of an organization.
One of the main goals of tracking KPIs is measuring progress toward specific goals and long-term objectives that have quantifiable milestones. In this sense, KPI tracking serves as a benchmark of advancement and improvement.
In addition to collecting data and measuring it, KPI tracking also involves presenting these findings in an easy to understand format such as BI reports, charts, and even specific BI dashboards.
As a crucial aspect of overall analytics, business intelligence KPI tracking helps organizations quantify their progress and discover how to improve their operations.
How can I use KPI tracking?
In a modern workplace, KPI tracking plays a vital role in ongoing efforts to fine-tune and properly orient organizations for success.
The first step towards successfully monitoring your organization’s performance metrics is creating a relevant KPI library.
With a clear idea of pertinent KPIs, there are several areas that can be immediately improved by tracking them accurately.
One of the most common use cases for KPIs is sales, where overall success and progress toward objectives is quantifiable, enabling easier tracking.
This includes tracking areas like monthly sales, sales as a function of converted leads, and sales growth.
Using KPI monitoring, companies can understand how their sales funnels are working from lead to conversion and get insights as to where they can be improved.
Benefits of tracking your KPIs
KPI tracking can help your employees drive improvements by providing everyone with a single source of truth for performance management. No data expertise is required with Sisense’s easy to use dashboards, so every role in your organization can benefit from actionable insights, improving efficiency and productivity.
Once you’ve collected and measured your data, you’ll need to present these findings in an easy-to-understand format. This is where a BI solution like Sisense can help, providing BI reports, charts, and visualizations, including KPI dashboards.
As a crucial aspect of overall analytics, KPI monitoring using a BI platform helps organizations quantify their progress and discover how to improve their operations.
Marketing departments can also benefit from the use of KPIs, as they offer a clearer view of how specific campaigns and strategies are performing. Some of the more common KPIs in this vertical include lead conversions, returning visitors, brand awareness, and purchase funnels.
See here our full list of marketing KPIs – explained and exemplified.