Your financial KPI’s are incredibly important, but don’t forget your non-financial KPIs are just as essential for business planning and success.
You can choose to monitor a whole range of non-financial data that relates to your business goals, but it’s important not to track too many different KPIs, as this can be overwhelming and lead to inaction.
Wondering where to start? Read on, as we give you five of the best non-financial KPIs to monitor that’ll help you make smart business decisions.
Firstly, what is a non-financial KPI?
It’s pretty much what it says on the tin, a key performance indicator (KPI) that doesn’t relate to your finances. Think of it as an indicator or insight into your business, an indicator that doesn’t relate directly to your money.
KPIs help you monitor and gain insight into exactly how you’re doing, and can apply to your customers, employees and many other elements of your company.
1. Customer/client satisfaction
Knowing how happy your customers or clients are is essential to your overall success. If they are repetitively dissatisfied, it’s likely that they’ll go elsewhere. It’s also likely that they’ll voice their bad experiences online and with others. This could put people off your company and prevent them from becoming customers.
You could send regular surveys or polls and monitor the responses. You can then benchmark, analyse and track this data over time. If you prefer a more personal approach, encourage your team to ask for feedback during client meetings, note down what they say and share it with the rest of the team.
2. Customer/client retention
It’s a good idea to track your customer or client retention rates, how many of your customers become repeat customers over a certain period of time or how many have been customers with you for an extended duration.
Knowing who’s a longstanding customer or client is important to your business as you can re-approach them with new opportunities. You can also begin to identify the types of businesses that you retain well, so you can try to work with more of them in the future.
3. New product and process development
You can set a non-financial KPI that focuses on the implementation of new products or services within your business.
Your innovative new ideas can help set you aside from your competitors, increase customer satisfaction levels, and help you attract new custom.
You could also develop a KPI for the implementation of new internal processes and monitor the impact on your team overall. Which brings us to our next internally-focused KPI.
4. Employee satisfaction
A happy team can result in a more effective business, increased productivity, and ultimately a happy bottom line. You’re also more likely to retain your team when they feel satisfied with their job. You can monitor this in a similar way to your customer satisfaction, implement regular surveys which will create data for you to analyse and track.
Alongside surveys, it’s important to speak with your team members on a one-on-one basis so you can gain further information and an understanding of how they’re feeling. Regular 1-2-1’s will help you understand the survey results in more depth.
5. Team development
Having a team that constantly learns and develops new skills is a benefit to both your business and each individual team member.
If you set an internal target of your whole team completing a training course or spending a certain number of hours learning a new skill by the end of the next quarter, you can track progress and keep an eye on its effectiveness.
Offering training opportunities can also help increase employee satisfaction and retention overall.
Need help with your non-financial KPIs?
We’ve helped business owners set countless KPIs over the years! We also have our own set of non-financial KPIs that we follow, fancy a chat? Get in touch.
