The ultimate business KPIs
All business leaders want to see their business grow and succeed. They build and deliver high quality products and services. They recruit high-performing, experienced people. They market and promote their business to engage their target customers. And of course, they measure the business results, typically in terms of revenues and most importantly profits generated.
Financial metrics such as revenue and profit are typically seen as the most important KPIs in a business. But are they really? We don’t think so. We see two other KPIs as being the most important ones for any successful business: your client feedback score (often referred to as your Net Promoter Score or NPS) and your people engagement score.
And it’s backed up by evidence. We found that business units in the top quartile (top 25%) in terms of employee engagement consistently had 20% higher customer loyalty and 12% higher profitability than those in the other three quartiles (the bottom 75%).
Let’s take a further look at why we believe you need to prioritise them.
Net Promoter Score
Your NPS measures the loyalty of your customers. It asks them what’s called “the ultimate question”….on a scale of 0 to 10 how likely would they be to recommend your company to others. Companies with very high NPS scores are renowned for their customer service and loyalty. And loyal customers not only buy more, stay with you longer. They will pay more for your products and services and will proactively recommend you to others.
People Engagement Score
Your people engagement survey is the internal part of the NPS. It tracks the engagement levels of your people. More engaged employees deliver better results and stay with you longer. They also often become your best recruitment vehicle in that they too will proactively recommend your company to other potential employees (and customers too).
Focusing on and prioritising these two KPIs drives performance. If you’d like to explore how to make your business more successful, we’d love to hear from you!
