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    KPI Help in Predicting The Growth of Business

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    vishal kashyap
    Having a marketing dashboard that measures key performance indicators (KPIs) gives insight to make better decisions and generate traffic, leads, and prove return on investment. The document discusses important KPIs for a marketing dashboard, including cost of customer acquisition, customer lifetime value, revenue growth rate, number of active users, and churn rate. Regularly monitoring these KPIs through a dashboard helps organizations track their progress, identify issues, and take necessary actions to achieve business goals.

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    KPI Help in Predicting The Growth of Business

    Uploaded by

    vishal kashyap
    147 views1 page
    Having a marketing dashboard that measures key performance indicators (KPIs) gives insight to make better decisions and generate traffic, leads, and prove return on investment. The document discusses important KPIs for a marketing dashboard, including cost of customer acquisition, customer lifetime value, revenue growth rate, number of active users, and churn rate. Regularly monitoring these KPIs through a dashboard helps organizations track their progress, identify issues, and take necessary actions to achieve business goals.

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    KPI help in predicting the growth of business

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    Having a marketing dashboard that measures key performance indicators (KPIs) gives insight to make better decisions and generate traffic, leads, and prove return on investment. The document discusses important KPIs for a marketing dashboard, including cost of customer acquisition, customer lifetime value, revenue growth rate, number of active users, and churn rate. Regularly monitoring these KPIs through a dashboard helps organizations track their progress, identify issues, and take necessary actions to achieve business goals.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    147 views1 page

    KPI Help in Predicting The Growth of Business

    Uploaded by

    vishal kashyap
    Having a marketing dashboard that measures key performance indicators (KPIs) gives insight to make better decisions and generate traffic, leads, and prove return on investment. The document discusses important KPIs for a marketing dashboard, including cost of customer acquisition, customer lifetime value, revenue growth rate, number of active users, and churn rate. Regularly monitoring these KPIs through a dashboard helps organizations track their progress, identify issues, and take necessary actions to achieve business goals.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    Having a marketing dashboard that measures vital KPIs is a bit like the crystal ball which can tell

    future: It gives you enough insight to make better decisions to create a positive future by helping you
    generate traffic and leads and prove the ROI of your marketing activities.

    What are the KPIs being mentioned in above statement, which, if captured in Dashboard can help?
    How can these KPI help in predicting the growth of business?

    Before going with the statements, one should be aware of, what the KPIs are and why it matters to the company.
    KPIs stands for Key Performance Indicator are the measurable values of checking that how efficiently and
    effectively company is achieving its business goals/objectives. These KPI's are used by organizations to check their
    way towards success at various levels and achieving targets.

    KPI's which will be useful in given statements are given below:

    • Cost of Customer Acquisition


    • Customer Lifetime Value
    • Revenue Growth Rate
    • Number of Active Users
    • Churn Rate

    Cost of Customer Acquisition: COCA is the amount spend on marketing of the product to acquire customers.
    And it is generally said that, "You have to spend Money, to make Money" but this must keep in mind that one
    should not end up spending more than one can make. So, basically marketer should have an idea what is the
    average spending and quantity that their customer are buying.

    To calculate this, combine your marketing (and sales) expenses for a given period / total number of customers
    acquired in that period = cost to acquire a single customer

    Customer Lifetime Value: CLV is defined as the value which a customer will deliver to the company for her
    lifetime purchase. This metric also helps marketer to determine that how successful will be the business in long
    run.

    To calculate this, CLV = Margin per customer x Number of period of purchase - Customer Acquisition Cost

    Revenue Growth Rate: Organization always want to keep eye on how well their business is going on. This metric
    measures the rate at which their revenue increases or decreases.

    To calculate this, (Revenue current period - Revenue previous period) / Revenue of first period x 100%

    Number of Active Users: This is one of the most common metrics in E-Commerce businesses. Through this
    company keeps eye on active users. The number should either increase or remain stable for consecutive months,
    if it's decreasing even in small quantity then there is something that need to change or modified.

    Churn Rate: Churn rate is also known as attrition rate, percentage of people who leave the business. If churn rate
    is high probably your business will definitely not going to be last long. So, it needs to be control for keep the
    business growing.

    To calculate this, (Number of customers at the beginning of the period - Number of the customers at the end of
    the period) / Number of customers at the beginning of the period

    So, KPI's are important for growing businesses and KPI's depends upon type of business and scaled on the basis
    of that only. So organizations should keep eye on them regularly and should take necessary actions timely on the
    basis of this KPI's if needed.

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