Research shows that our economy is largely being driven by middle-market firms, especially those in the service industries. Key Performance Indicators (KPIs) are one of the most effective tools for service companies to manage their growth, cash flow, customer retention, and customer satisfaction. According to a press release from American Express:
"Middle market firms are leading business growth in the United States, outpacing both small and large-sized firms,” said Jeff Stibel, vice chairman of Dun & Bradstreet. “More specifically, the service industry continues to lead middle market growth in terms of revenue, employment, and number of firms, reflecting the larger trend in the U.S. moving from a manufacturing-based to a service-driven economy.
Many of our successful middle-market clients are in the professional services, IT, or staffing industries, so we’ve seen plenty of trends and patterns in these industries over the years. As these companies experience rapid growth, a common question is “What should we measure?” What is a good service KPI? How many service KPIs should I have? Many leaders are finding that they have more information than ever at their fingertips—but this can create confusion, too. What good is having access to data that you don’t use or can’t consume?
The best practice is to identify a handful of key metrics—or KPIs—that will help you measure the health of your business over a specific period. We’ve found that measuring a handful of service KPIs in each of these four categories can help you keep a pulse on the overall health of your enterprise: Employees, Customers, Revenue, and Process. Check out our online comprehensive KPI guide to learn more about creating metrics that matter.
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Employees
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Revenue
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Customers
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Processes
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This list is not comprehensive, and if you measured everything on this list, you’d be measuring too many things. The trick to setting a valuable KPI for your company is to focus on your specific business model and what you need to know in each category. Narrow your list to the top 8-12 KPIs during your team's quarterly planning session. The key is to start measuring service performance and you can always make adjustments from there.
See how Rhythm Systems software can help you execute your KPI strategy and strategic initiatives.