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1. Procedure to Measure KPI

2. To measure the success of the business, Key Performance Indicator (KPI) plays a vital role. It is a quantifiable goal that directly affects the performance of your business through establishing key drivers of business success, such as sales, revenue, sales cost, customer satisfaction and acquisition.

3. Form Your Performance Goal Revenue can increase if the cost of sales has also increased. As a result, it shows that company is in profit or in no profit no loss zone or declining. Each KPI can be quantified, but the growth of gross margin indicates that the cost of sales is either declining or revenues are increasing and the cost of sales is remaining the same. Forming your performance is a basic stage. It is not only about the sales, but in case of any department you first need to establish your goal.

4. Employees’ improvement and involvement A key person in all that we do, is an employee of the company. Everything starts from then and generates from them. Evaluating their performances is equally important. When you set a target for sales, you also need to improve the performance of your company. KPI measurement must take into consideration all the details of the process to reach the goal.

5. Cost, growth and health Whenever you plan to bring some improvements in the performance the most important thing you would need is cost. To give an example, if training your sales staff costs $100,00, you must be able to make that money back in improved gross margin, which is sales revenues less the cost of sales and goods sold.

6. The next thing to monitor is the adoption of the new methods by your sales department. The training should be useful and profitable for the company it should give returns to the company. If the company goes back to the old methods and trained methods are not used, then the investment will turn into the loss. You must monitor the health of the ongoing sales process. If you observe that the sales performance has improved sufficiently, then you can co-relate it with new methods and determine them.

7. Assessment of KPIs First make your decision on the metrics, such as dollars or percentages of increase in sales. Then decide your priorities, such as what type of sales, which products and services you want and what improvements you want on preference. For this you can use tools for calculating your KPIs. Ezzy KPI gives you free trial to evaluate growth of the company from all the aspects.

8. BY http://www.ezzykpi.com/