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Key Performance Indicators (KPIs) for Small Business

Before you start implementing Google Analytics on your site, you should take the time to create a measurement plan.    Keep in mind perhaps the leading concept of digital marketing is “Measure, Analyze, Improve, Repeat“.   This would probably be at the very top of the digital marketing industry’s list of “best practices”, what can be measured can be improved!   Therefore you want to:

#1: Identify growth goals by creating your buyer personas, value proposition and business goals.  

#2: Identify strategies and tactics to achieve these goals.  Your plan must include both strategies (high-level plans) and tactics (specific methods) in order to guarantee success.  

#3: Identify Key Performance Indicators (KPIs) – These are the metrics that you’re going to use on a daily business to understand how your business is performing and should be aligned with your strategic objectives.   Begin with this list, and determine the KPIs to reflect each of the areas of most importance.   This is a list of 32 Key Performance Indicators (KPIs) for small business to consider.   Think carefully about which areas of your business are suitable for measurement.   Different sets of metrics are important for different businesses.  Focusing on the right ones gives you early confirmation of success or early alerts to potential problems with your unique business model.   So remember the Key Performance Indicators (KPIs) for Small Business that matter to you might not matter to another – and it’s important to not get caught up chasing the wrong KPIs.    Reach out to us if you would like advice on how to focus on the essential handful of KPIs for your business model. 

Sales Key Performance Indicators:

  • Hourly, daily, weekly, monthly, quarterly, and annual sales
  • Average order size (sometimes called average market basket)
  • Average margin
  • Conversion rate
  • Shopping cart abandonment rate
  • New customer orders versus returning customer sales
  • Cost of goods sold
  • Total available market relative to a retailer’s share of market
  • Product affinity (which products are purchased together)
  • Product relationship (which products are viewed consecutively)
  • Inventory levels
  • Competitive pricing

Marketing Key Performance Indicators:

  • Site traffic
  • Unique visitors versus returning visitors
  • Time on site
  • Page views per visit
  • Traffic source
  • Day part monitoring (when site visitors come)
  • Newsletter subscribers
  • Texting subscribers
  • Chat sessions initiated
  • Facebook, Twitter, or Pinterest followers or fans
  • Pay-per-click traffic volume
  • Blog traffic
  • Number and quality of product reviews
  • Brand or display advertising click-through rates
  • Affiliate performance rates

Customer Service Key Performance Indicators:

  • Customer service email count
  • Customer service phone call count
  • Customer service chat count
  • Average resolution time
  • Concern classification

Once you have set goals and selected KPIs, monitoring those indicators should become an everyday exercise. And most importantly: Performance should inform business decisions, and you should use KPIs to drive actions.   If you’ve set your Key Performance Indicators (KPIs) for small business correctly, they should reflect the most important parts of your business, but still, data viewed in isolation can always be misleading. It’s important to keep the overall business context in mind.

Reach us at tel. 256-270-4040 if we can help identify your Key Performance Indicators (KPIs) for Small Business!