It can be intimidating to sit down to a blank slate and begin working on your company’s first official KPI dashboard! Over the years, I’ve worked with hundreds of technology and software companies doing just that - beginning their KPI journey in Rhythm. So how do you get started?
First, it’s helpful to think of your business in terms of 4 key areas: Employees, Customers, Processes and Revenue. In order to have a clear high-level view of the health of your company, you should have visibility on all four areas. What can you measure to give you the proper insights on the health of your employees, customers, processes and revenue?
If you are still stuck, we’ve compiled the ultimate KPI cheat sheet for software companies! Below are some of the most common KPIs we’ve seen from technology companies using Rhythm for each of the 4 key areas:
Are your employees engaged, productive, delivering results, and excited about the future?
Do your customers love, appreciate and refer you?
- Customer Retention/Churn
- Customer Referrals
- Customer Net Promoter Score
- # of Open Customer Support Tickets
Do you have healthy operations and disciplines that you can scale for the future?
- Mean Time to Recover (MTTR)
- Ticket Resolution Time
- On-time Delivery
- A/R Days
Do you have the right product/service offerings and marketing/sales strategies to support your current and future revenue goals?
- New Customer Sales
- Existing Customer Expansion
- Cost of Customer Acquisition
- Close Ratio
- Close Cycle
- Recurring Revenue
- Cash Runway
Finally, you and your team just need to get started. Start measuring some KPIs that you think will give you the proper insights and drive the right discussions at your Weekly Team Meeting. Test them and don’t be afraid to make adjustments to your software KPI list. If a KPI isn’t giving you good insights or prompting action when you're not on track, stop measuring it and try a different metric. It may take a few quarters to determine your best KPI set. These KPIs also apply to IT (Information Technology) companies and many others, so feel free to download our guide and create the best technology KPIs for your team.
See how Rhythm Systems software can help you execute your KPI strategy and all of your strategic initiatives.
Looking for more KPI Examples to help get you started? Check out our additional resources:
Rhythm Systems KPI Resource Center
Still not sure which KPIs to focus on? Download our free KPI Guide for help.
Photo Credits: iStock by Getty Images
Photo Credit: iStock by Getty Images