What is a KPI (Key Performance Indicator)? –
A KPI is a target to show how well things are going. 🎯
- Sales targets are a “key performance indicator” for shops – they show how well sales are performing. 🛍️
A business might say, “Our target was to make £100, and we have made £100. We have achieved 100% of our sales KPIs/targets.”
- You might be given “key performance indicators” (targets) at work, to track how well you’re doing. 🔎
Your boss might say, “Your target was to sell 10 cups of coffee, and you have sold 10 cups of coffee. You have achieved 100% of your sales KPIs/targets.”
KPIs help you to understand how well you’re performing against your goals, and what needs to be improved.
If you’re achieving your KPIs, great! Do you need to set higher targets next time?
If you’re not achieving your KPIs, why not? What do you need to improve in order to meet them? Did you set unachievable goals? Should you set lower goals next time?
What do KPIs track? 🔎
KPIs/targets that a business might want to track include things like:
- How happy customers are (customer satisfaction surveys, feedback)
- Amount of money each customer spends
- How much money the business is making
- Which products are the most popular
- How many customers the business has
- New customers vs returning customers
- How many customers have left the business
- Number of complaints from customers
- Amount of money spent on hiring people
Talking about KPIs in job interviews 💼📊
Employers love it when you ask them about their KPIs, as it shows that you care about their goals for the future!
Why not talk about KPIs in your next job interview?
So that’s it!
A KPI is a target to show how well things are going.
Hopefully you’re feeling more confident about understanding KPIs.
If you know any friends or family members who might benefit from learning about KPIs, share this post with them!
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