Key performance indicators

Key Performance Indicators (KPIs) are widely used across industries in the UK to measure success and performance. Here are some of the top KPIs commonly used in various sectors:

1. Financial KPIs:

  • Revenue Growth: Measures the increase in sales or income over a specific period.
  • Net Profit Margin: Percentage of revenue remaining after all expenses.
  • Gross Profit Margin: Shows the percentage of sales revenue exceeding the cost of goods sold.
  • Operating Cash Flow: Indicates how much cash a company generates from its operations.
  • Return on Investment (ROI): Measures the profitability of an investment relative to its cost.

2. Customer KPIs:

  • Customer Satisfaction (CSAT): Measures customer happiness or satisfaction with a product or service.
  • Net Promoter Score (NPS): Gauges customer loyalty by asking how likely they are to recommend a product or service.
  • Customer Retention Rate: The percentage of customers retained over a period.
  • Customer Lifetime Value (CLV): Predicts the total revenue a company can expect from a single customer over time.
  • Churn Rate: The percentage of customers who stop using a service or product during a given period.

3. Operational KPIs:

  • Efficiency Ratio: Compares operational expenses to revenue generated.
  • Average Order Value (AOV): Measures the average amount spent each time a customer makes a purchase.
  • Inventory Turnover: Tracks how often inventory is sold and replaced over a period.
  • Project Completion Rate: The percentage of completed projects or tasks within the expected timeframe.
  • Cycle Time: The amount of time required to complete a business process from start to finish.

4. HR and Employee KPIs:

  • Employee Turnover Rate: Tracks the percentage of employees leaving over a specific period.
  • Employee Satisfaction/Engagement: Measures how content or engaged employees are in their roles.
  • Absenteeism Rate: Tracks the number of days employees are absent.
  • Training Completion Rate: The percentage of employees who complete required training.
  • Productivity Rate: Measures employee output over time, often compared against targets.

5. Marketing KPIs:

  • Cost per Acquisition (CPA): The cost of acquiring a new customer.
  • Conversion Rate: The percentage of leads or website visitors who take a desired action (e.g., making a purchase).
  • Website Traffic: The number of visitors to a website over time.
  • Return on Ad Spend (ROAS): The revenue generated for every pound spent on advertising.
  • Lead Conversion Rate: Measures the percentage of leads that turn into paying customers.

6. Environmental, Social, and Governance (ESG) KPIs:

  • Carbon Footprint: The total greenhouse gas emissions produced directly and indirectly by a business.
  • Diversity and Inclusion Metrics: Tracks the representation of different demographics within the workforce.
  • Waste Reduction: Measures progress in reducing waste or increasing recycling efforts.
  • Energy Efficiency: Tracks energy consumption per output unit.
  • Social Impact Metrics: Measures the effect of a company's actions on communities and stakeholders.

These KPIs vary depending on the industry and the specific goals of a business, but they are commonly tracked across many sectors in the UK to evaluate and improve performance.

Do you use KPIs in your business?

Please call if you would like to create a regular KPI report for your business.