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Examples of KPIs for functions and departments

Posted: Thu Jan 30, 2025 4:02 am
by subornaakter20
Management:

Customer lifetime value.

Return on equity.

Customer acquisition costs.

Sales target.

Net profit percentage.

Operating expense ratio.

Return on assets, etc.

Examples of KPIs for functions and apparel company database departments

Source: shutterstock.com

Finance:

Current liquidity ratio.

Operating expense ratio.

Working capital.

Operating profit margin percentage.

Gross profit margin share.

Net profit margin percentage, etc.

Sales:

Comparative sales growth.

Customer churn rate.

Cost of customer acquisition.

Sales plan, etc.

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Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
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Key KPIs for 2025
Let's look at common KPI formulas for measuring and evaluating business success in 2025.

Revenue
Revenue is the total amount of money earned by a company over a given period of time. This key performance indicator is a critical indicator of a company's overall financial health and performance.

Gross profit
Gross profit is the amount of profit a company makes after subtracting its cost of goods sold (COGS). COGS includes the direct costs associated with producing and selling a product or service, such as materials and labor.

Net profit margin
Net profit margin is a financial ratio that measures a company's profitability by comparing its net income to its revenue. This metric helps companies understand how much profit they are making from each dollar they earn.

Conversion rate
Conversion rate is the percentage of website visitors who take a desired action, such as making a purchase or filling out a form. This metric is critical for companies that rely on online traffic to attract customers or increase sales.

Average order value
Average order value is the average amount customers spend on each transaction. This metric is useful for companies looking to increase their revenue by encouraging customers to buy more products or services.

Customer Lifetime Value
Customer lifetime value is the total amount of revenue a company can earn from a single customer over the life of the relationship.

This metric is important for companies that want to retain customers and increase their profits over time.

Case: VT-metall
Find out how we reduced the cost of attracting an application by 13 times for a metalworking company in Moscow
Find out how
Return on Investment (ROI)
Return on investment measures the profitability of a particular investment or marketing campaign. This key metric is critical for businesses looking to evaluate the effectiveness of their marketing efforts and ensure that they are delivering a positive return on their investment.

Customer Retention Rate
Customer retention rate shows the percentage of customers who continue to do business with a company over a certain period of time. This metric is important for companies that want to retain customers and ensure their long-term success.

Net Promoter Score (NPS)
Net promoter score or "net promoter index" measures the likelihood that customers will recommend a company to others.

This KPI is critical for companies that want to understand how satisfied their customers are and how likely they are to recommend their products or services to others.


Stages of implementation of KPI indicators in the work of the company
In the process of implementing KPIs, it is necessary to pay attention to the fact that these indicators will influence many processes. For example, the standards for employees will be based on the performance indicators and financial and economic action plans will be created.

Stages of implementation of KPI indicators in the work of the company

Source: shutterstock.com

It will be necessary to create a motivational system for employees, because otherwise the implementation of KPIs will simply not stimulate employees to take action.

It will be necessary to organize the training of managers for the new technology of tracking employee efficiency. This is necessary so that they have time to properly set up business processes of control and making tactical decisions.

Thus, the implementation of performance indicators will be successful if the following sequence of actions is followed.