Post by account_disabled on Jan 23, 2024 1:53:13 GMT -5
Many years ago, when we were just starting out, an incident happened that completely changed our approach to business process analytics. At that time, we evaluated business development by such indicators as traffic, subscriber growth, and reposts. And we were sincerely convinced that these indicators accurately assess how the business is developing. We built beautiful graphics, and we were just bursting with pride - how well we did. But one day the client took another report, looked at the graph, then at us and said: "It's all good. But I have losses. Explain why." It was a bucket of cold water. How are the losses? After all, everything is fine - there is traffic, users subscribe, likes. What's the trouble? And then we realized that these are not the indicators that we need to monitor in order to know whether the business is solving its tasks. An error was made at the beginning of the path.
Helped us understand the main thing: there are indicators C Level Executive List that look good, but do not give any information, and there are those that reflect the real state of affairs. And it is necessary to work with them. We realized this in our experience, but it was not until a few years later that I read Eric Rice's book "Learn Start Up", where he gave a name to such a situation. These are vanity metrics. Indicators that make you feel good but don't tell you anything about how the business is doing or if there are problems. A common mistake is to accept them as KPIs, that's what I'll talk about. What indicators evaluate business efficiency Metrics for evaluating business processes are called KPI - key performance indicators .
How well did the call center or sales department work, what was the result of the advertising campaign, how did the average check or customer lifetime increase. All indicators that affect profit and help make decisions are KPIs. KPI report - data is easy to understand and read KPI report - data is easy to understand and read Each business has its own KPI metrics, there are many of them . But not all of them are useful. Some are completely meaningless for a specific area of business, and others are even dangerous, because they make you believe that the business is developing (when in fact it is not) and distract the owner from what is really important. In order to understand whether the company is achieving its goals, it is necessary to analyze and evaluate the right indicators, but many people have a problem with this - they focus on the wrong metrics that help to evaluate the development of the business and its prospects. Most often, this happens because the owner sets the goals incorrectly.
Helped us understand the main thing: there are indicators C Level Executive List that look good, but do not give any information, and there are those that reflect the real state of affairs. And it is necessary to work with them. We realized this in our experience, but it was not until a few years later that I read Eric Rice's book "Learn Start Up", where he gave a name to such a situation. These are vanity metrics. Indicators that make you feel good but don't tell you anything about how the business is doing or if there are problems. A common mistake is to accept them as KPIs, that's what I'll talk about. What indicators evaluate business efficiency Metrics for evaluating business processes are called KPI - key performance indicators .
How well did the call center or sales department work, what was the result of the advertising campaign, how did the average check or customer lifetime increase. All indicators that affect profit and help make decisions are KPIs. KPI report - data is easy to understand and read KPI report - data is easy to understand and read Each business has its own KPI metrics, there are many of them . But not all of them are useful. Some are completely meaningless for a specific area of business, and others are even dangerous, because they make you believe that the business is developing (when in fact it is not) and distract the owner from what is really important. In order to understand whether the company is achieving its goals, it is necessary to analyze and evaluate the right indicators, but many people have a problem with this - they focus on the wrong metrics that help to evaluate the development of the business and its prospects. Most often, this happens because the owner sets the goals incorrectly.