Questions

We are re-focusing on growth and my job as finance is to come up with KPIs that we should be looking at regularly. Since we don't have the usual subscription model, it's difficult to track some traditional KPIs such as MRR, Contract Value, etc. Wondering what other revenue-sharing companies use as indicators.

Don't start with the KPIs, start with the responsibilities.

Think of everybody in your business and list out what your performance expectations are of each person. Then determine how you will know if those expectations have been met: what are the outcomes you will track for each.
Those are your KPIs.

For example: you expect your sales people to sell. That is a fine starting point. But what does that mean?
- Do you expect new clients? And if so how many? At what value?
- Do you expect return business? How much? How often?
- Do you expect up-sells? How often?
- What activities to expect to see to lead to these results?
- How many clients do you expect to see? What percentage of business is new, versus old? Are you high value low volume or the other way around?

This will be a more effective way to find realistic measurements that are both easy to track, and easy to share and "sell" to your employees.


Answered 6 months ago

Unlock Startups Unlimited

Access 20,000+ Startup Experts, 650+ masterclass videos, 1,000+ in-depth guides, and all the software tools you need to launch and grow quickly.

Already a member? Sign in

Copyright © 2020 Startups.com LLC. All rights reserved.