Key Performance Indicators (KPIs) are a fundamental part of tracking progress. In contrast to financial KPIs, non-financial KPIs also allow business owners to assess their company’s progress. Its results help give business owners better business insight that extends beyond only profit. Below are several non-financial KPIs that every small business owner should consider in their operations. 1. Repeat Business Repeat customers are a solid non-financial KPI for benchmarking. It’s important to know exactly how many clients are coming back to choose your product or service. For example, understanding their intent or persistent interest in your service allows you to tie it back to other business strategies. Determining this KPI also helps you prioritize which customer relationships to nurture, as opposed to other less reliable sources (i.e. bad clients). 2. Client Satisfaction Besides profitability, another key non-financial KPI to track is client satisfaction. Low client satisfaction leads to customers looking for better alternatives, which is detrimental to revenue. By channeling efforts to maintaining or improving client satisfaction, you can better position your business to increase future prices or to develop new offerings. 3. Employee Happiness For businesses with employees, it’s crucial to understand non-financial KPIs such as employee happiness. After all, human capital is the foundation of any successful company. However, research has shown that 48% of employees are either unhappy at work, or only somewhat happy. This is a problem. To grow rapidly but sustainably, small business owners need to track employee happiness and overall engagement. Keeping them happy and motivated is the difference between a successful and failing business. Although there is no single way to measure this non-financial KPI, two well-known approaches are to use the 3 question employee satisfaction index (ESI) for an initial approach, followed by a 7 Category ESI Survey for a more detailed result. Both of these approaches explore self-evaluation using a variety of different angles, including autonomy, intrinsic vs. extrinsic awards, affinity, and supervisory support, amongst a few others. 4. Content Marketing ROI Content marketing return on investment (ROI) is a percentage that demonstrates the revenue gained from content marketing, in comparison to what has been spent. Similar to financial KPIs, you can measure how much revenue is earned by subtracting your expenses. The 4-step process includes the following: Calculate how much you spent to produce the content Calculate how much it cost you to distribute the content Work out the dollar amount for what you got in return Calculate your content marketing ROI For example, let’s say you’ve spent $1000 on creating a content piece that receives leads worth $3000. Using the formula below, your ROI is 200%. (Return) $3000 – (Investment) $1000 = $2000 $2000 / $1000 = 2 2 x 100% = 200% (ROI)If you’re still unsure, a good rule of thumb to follow is if you spend less on producing content than you earn in sales, then it’s worth it. Tracking Your Expenditures and Income in Kashoo What’s the easiest way to track how your business is doing? By using an automated accounting tool like Kashoo! Kashoo pulls all of your business transactions in from your bank feeds and learns when you categorize so it can automate the process! Small business owners spend less than 20 minutes a month review their transactions for the month and can pull their key financial reports instantly! Try Kashoo for free for 14 days and see just how easy it is.
