improving your business with metrics and kpis
TRANSCRIPT
Improving Your Business with Metrics and KPIs
presented by: Eric Dosal, Co-Founder BrightGauge
Our Journey Today
Setting the Baseline Categories of Metrics Implementing Data Driven Decisions Potential Pitfalls Resources To Learn More
“What gets measured, gets managed” – Peter Drucker
Connect with me: Corporate: brightgauge.com Personal: dosalbrothers.com
Social: @EricDosal
www.brightgauge.com
20%+ Company In All Of Us
Category Dollars
Total Revenue $1,000,000
COGS
Direct Labor $370,000
Hard Costs $100,000
Gross Margin $530,000
Expenses
Sales & Marketing $70,000
Mgmt & Admin $70,000
Other Opex $60,000
Taxes $60,000
Rent $20,000
Training $20,000
<Your Investment Here> $30,000
Net Profit $200,000 www.brightgauge.com
What is an Indicator?
Key Performance Indicators (KPI) are a specific measurement used to gauge performance
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Lagging Indicator Leading Indicator
Indicator Categories
Finance Sales Marketing Customer Operations Employees Corporate Responsibility
www.brightgauge.com
Finance Metrics
Cash On Hand – Daily Accounts Receivables – Weekly Revenue By Category – Monthly Service Gross Margin – Monthly Service Team W2 Ratio – Monthly EBITDA Margin – Monthly Revenue / End User Supported – Monthly
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Sales Metrics
Sales Activities Closed by Rep – Weekly Revenue Closed By Rep – Weekly Sales Activities Scheduled by Rep – Weekly MRR Deals Closing This Month – Weekly Average Hardware Order Revenue – Monthly Total Pipeline Dollars By Type – Monthly Sales Expense as a % of Revenue – Monthly
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Marketing Metrics
Social Media Mentions – Daily Website Visitors – Monthly Leads from Website – Monthly Unique Blog Page View – Weekly Newsletter Views & Clicks – Weekly
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Service Operations Metrics
SLA Adherence – Daily Time Sheet Updates – Daily Tickets Closed By Engineer – Weekly Service Backlog (Open vs Closed) – Weekly Project Efficiency (Budget vs Actual Hours) – Weekly Engineer Utilization – Monthly Cost / End User Supported – Monthly
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Customer Metrics
Customer Satisfaction – Daily Tickets Opened By Client – Weekly Onsite Visits – Quarterly Customer Retention Rate – Quarterly Net Promoter Score – Quarterly
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Implementing Data Driven Decisions
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1. Assign an Owner
2. Capture The Data
3. Create a Baseline
4. Filter the Outliers
5. Implement a Change
6. Evaluate Results
7. Manage the
Exception
Share how each person can impact
the metric +/-
#1 – My Service Manager
#2 – Every ticket had to be in Connectwise & pushed clients to open tickets via email
#3 – Avg Response time 32min – 37min
#4 – Daily tickets for onsite teams
#5 – Moved daily tickets to new board & assigned 1 triage person
#6 – Avg Response time dropped to < 8 min per day
#7 – Weekly SLA Report
Implementing Data Driven Decisions
www.brightgauge.com
1. Assign an Owner
2. Capture The Data
3. Create a Baseline
4. Filter the Outliers
5. Implement a Change
6. Evaluate Results
7. Manage the
Exception
Support & Sales can authorize Reboot Offers
#1 – Me
#2 – All people that churn get a personal email from me
#3 – Churn rate 7%
#4 – Sign ups without a demo
#5 – Changes qualification process & forcing implementation packages
#6 – Churn currently 3.6% and headed the right way
#7 – Weekly Trial Customer Review
Resources to Learn More
Key Performance Indicators Book by Bernard Marr Internal Metrics White Paper by Eric Dosal Service Management Webinar by Rex Frank Establishing KPIs Webinar by Rex Frank Using Data To Make Better Decisions by Eric Dosal
www.brightgauge.com and www.dosalbrothers.com
www.brightgauge.com