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Datasys discusses some of the KPIs that businesses should no longer track.
North Kingstown, Rhode Island / iCrowdNewswire / March 13, 2020
Datasys, a leading nationwide data analysis and analytics company, has noticed a growing trend in the world of B2B enterprise- companies today are tracking far too many “useless” metrics. Today’s businesses are tracking tremendously large numbers of metrics without considering their actual usefulness, which leads to huge amounts of unstructured data that can distract data scientists from the metrics that actually matter.
When businesses ascribe to a one-size-fits-all analytics system, they are less likely to get anything functional from their knowledge. Here are a few tips from Datasys to better fine-tune your key performance indicators-
With extensive experience in the analytics and research industry, Datasys has discovered that KPIs that are not connected to actual results are a prime target for employee abuse. For instance, your employees might create multiple troubleshooting tickets for a client’s problems rather than a single one because it makes them appear more productive. Likewise, workers may be lured into contacting a large number of leads each day without really listening to that customer’s challenges, just to appear highly efficient (while destroying your conversion rates in the process).
That’s why it’s a horrible idea to measure employee success by any KPI other than what makes their positions actual successful.
Datasys also shares that many businesses are tracking nebulous performance factors, such as which employees are most liked by others. Unfortunately, subjective KPIs can be easily influenced and can lead businesses in the wrong direction- some of your most prolific staff members may often get overlooked simply because they’re too busy being productive.
Likewise, customer satisfaction surveys often lead to the wrong types of impressions as well. For instance, if you’re asking your staff to deliver occasional bad news to clients, they could end up being rated poorly even though they ultimately improved the customer’s overall satisfaction. Any opinion-based KPIs have to be studied carefully and implemented with the right expectations. Datasys recommends focusing on objective, rather than subjective, KPIs.
It is also important to remember that many of your KPIs can be extremely time-sensitive. Your business needs to be able to explore ways to increase the speed at which KPIs are measured to better understand their overall value.
“Last quarter’s performance gives a company time to react,” shared a Datasys KPI analyst. “But if you’re getting last year’s performance in November, it’s unlikely that you’re going to be able to use those KPIs to produce anything of value.”
The most common “lagged KPIs” are ones that have to do with customer outcomes. For instance, let’s say that one of your customers has a poor experience with your brand online or in a store. If you don’t address that problem immediately and allow it to continue frustrating hundreds of other consumers for months at a time, then it can have a substantial impact on your bottom line. It’s too late to solve those issues as well since those customers will undoubtedly have moved on.
Datasys reminds businesses that the idea that “more data is always better” isn’t necessarily true if you’re not making use of the analytics that come from that data. To receive help establishing your KPIs or structuring your data, contact the experts at DataSys today.