Key Performance Indicators for CRM
The idea of managing your business around a limited set of Key Performance Indicators (KPIs) has been around for some time. Daily KPI dashboards powered by grid reports, charting and now big data analytics enable executives to monitor all aspects of business operations.
Yes, yes, yes…nothing new here. This week I had an interesting experience which renewed my interest in the value that KPI’s provide. Simply stated, the batteries powering my bathroom scale died, and it took me two months to finally replace them. During these two months, each morning I looked at myself in the mirror and thought, “I look fine. I am not gaining any weight.”
After replacing the batteries and to my shock, I saw I had gained 12 pounds in two months. Wow!! I had not noticed this ugly trend. Other then not being able to fit into my jeans.
Business is a never-ending endeavor, with each quarter leading the next and so on. The lesson for me here was although I monitor our KPI’s at X2Engine every day (if not 10 times a day), I believe over time, the repetition of sales transactions can dull our sense of the real world. The tendency to rely on our ‘experience based guesstimate’ of operations can lead to wrong perceptions of reality.