January 1, 2024
How to Track KPIs That Matter in Your Industry
For mid-sized businesses, tracking the right Key Performance Indicators (KPIs) is critical for maintaining a competitive edge. KPIs serve as a compass for decision-making, helping organizations pinpoint what's working and where improvement is needed. However, tracking KPIs that actually matter to your business and industry is often the challenge. By honing in on the most relevant KPIs, companies can use their data to improve operational efficiency, customer experience, and overall business outcomes.
Why Are KPIs So Important?
KPIs help businesses track performance over time and measure progress toward goals. According to a study by Forrester, 74% of firms say they want to be "data-driven," but only 29% are actually successful at converting analytics into actions that drive success . The gap often exists because businesses aren’t tracking the right KPIs or don't have a streamlined process to utilize the data for decision-making.
Identify Your Industry-Specific KPIs
KPIs vary greatly depending on the industry. Tracking the wrong metrics can lead to misguided efforts, wasted resources, and missed opportunities. Below is a breakdown of essential KPIs across three industries Eldon Group specializes in:
Healthcare: Operational Efficiency and Patient Outcomes
In the healthcare sector, efficiency and patient satisfaction are paramount. The right KPIs should focus on both operational and patient-centric outcomes.
Patient Satisfaction Score: This KPI measures patient experience, which directly impacts loyalty and referrals. A Press Ganey report revealed that a 1-point increase in satisfaction scores can lead to a 0.2% increase in profitability .
Patient Wait Time: Reducing wait time by 10% can lead to a 3% improvement in patient satisfaction scores .
Operational Costs Per Patient: Healthcare providers should track the cost of delivering care per patient, identifying areas for efficiency improvement.
Real Estate: Operational Costs and Tenant Satisfaction
In real estate, KPIs should focus on property performance, tenant satisfaction, and operational efficiency.
Occupancy Rate: A crucial metric that directly impacts profitability. Industry benchmarks suggest that a 5% increase in occupancy can boost revenue by up to 12% .
Tenant Turnover Rate: Tracking the turnover rate helps to measure satisfaction and retention. Lower turnover rates correlate with a 15% reduction in management costs .
Maintenance Response Time: Quick maintenance response times significantly impact tenant satisfaction. According to a J Turner Research study, tenants expect a maintenance issue to be resolved within 24 hours for a 4-star or higher satisfaction rating .
Retail: Customer Engagement and Conversion Rates
Retail is one of the most dynamic industries where tracking customer interactions is crucial for improving the customer journey and maximizing sales.
Customer Conversion Rate: Conversion rate is a critical KPI that directly impacts revenue. According to Shopify, improving your conversion rate by just 1% can lead to a 10% increase in revenue .
Customer Retention Rate: Studies show that improving customer retention by 5% can increase profits by 25-95% .
Average Transaction Value (ATV): A higher ATV indicates that customers are spending more per purchase. Cross-selling and up-selling can increase ATV by 10-30% .
How to Set Your KPIs
Align with Business Objectives
KPIs should always align with your broader business goals. If your focus is on customer experience, your KPIs might revolve around customer satisfaction, Net Promoter Scores (NPS), or retention rates. On the other hand, if operational efficiency is your priority, focus on tracking workflow completion rates, bottlenecks, and cost per outcome.
Ensure KPIs Are Measurable and Actionable
A KPI needs to be quantifiable and easy to interpret. Avoid ambiguous metrics and focus on those that can lead to clear, actionable insights. For example, a KPI like "improve employee satisfaction" is too vague, but "reduce employee turnover by 15% in Q4" is specific, measurable, and achievable.
Implement Real-Time Tracking
In a fast-paced business environment, having real-time access to KPIs can help companies adjust quickly to market demands. A McKinsey report states that organizations using real-time analytics to monitor KPIs are 2.2 times more likely to hit their performance goals .
This is where tools like automated dashboards become invaluable, allowing you to monitor data streams in real-time and make agile decisions.
How Eldon Group Can Help You Track the Right KPIs
At Eldon Group, we specialize in helping businesses define, track, and optimize the KPIs that matter most for their industry. Our expertise spans digital transformation, advanced analytics, and operational efficiency. Here’s how we can support you:
Customized KPI Dashboards
We create tailored, real-time dashboards that give you visibility into the most critical metrics, helping you track performance and adjust strategies on the go.
Data-Driven Insights
Our Business Intelligence team offers deep analytics into customer behavior, sales trends, and operational bottlenecks. By turning raw data into actionable insights, we help you refine your business strategy.
Industry-Specific Solutions
Whether you’re in healthcare, real estate, or retail, Eldon Group has the experience and tools to help you focus on the KPIs that drive results in your industry. We implement systems that integrate seamlessly with your current operations, ensuring that tracking the right KPIs becomes an effortless, ongoing process.
Automation for Efficiency
We can automate your KPI tracking and reporting process, eliminating the time-consuming manual work so you can focus on growing your business. Our automated tools provide real-time reporting, helping you make data-driven decisions faster.
Conclusion
Tracking the right KPIs is essential for sustainable business growth and operational efficiency. By focusing on metrics that align with your industry and business goals, you can create strategies that lead to measurable improvements. Eldon Group can assist in simplifying and optimizing your KPI tracking, ensuring that your business is always moving in the right direction.
Let us help you take control of your data. Reach out to Eldon Group today to learn more about how we can enhance your KPI tracking with our customized, industry-specific solutions.
References
Forrester Report: “Becoming Data-Driven: A Journey, Not a Destination,” 2021.
Press Ganey: “Patient Satisfaction and Financial Performance,” 2022.
Health Affairs: “The Value of Patient Wait Times in Healthcare,” 2021.
Deloitte Real Estate Industry Report, 2022.
National Apartment Association (NAA) Tenant Satisfaction Study, 2022.
J Turner Research: “Tenant Satisfaction Study,” 2023.
Shopify Ecommerce Report, 2023.
Harvard Business Review: “The Economics of E-Loyalty,” 2020.
McKinsey & Company: “Retail’s Next Frontier: Customer Experience,” 2023.
McKinsey: “Why Data-Driven Organizations Perform Better,” 2021.