What Exactly Is Custom KPI Measuring?

October 23, 2018

Using Key Performance Indicators, or KPIs, to measure how your business achieves its objectives is a smart move. You'll be able to see clearly if things are headed in the right direction. And if they're not, you can take steps to fix it.

But, what if standard KPIs don't give you the information you're looking for? Well, you're not stuck with using the industry standard, anymore. Enter the Custom KPI Measuring strategy.

What Is Custom KPI Measuring?

KPI's are meant for finding, diagnosing and correcting problems. These problems keep your business from achieving its goals and objectives. These can be things like low employee performance, poor customer satisfaction, and call abandonment rates.

If your KPIs aren't doing that, then it's time to reevaluate them.

Standard, industry-recognized KPIs may not suit your needs because they lack specifics. They are written with a broad stroke approach. They rely only on generalizations about the industry.

Yet, each business is a unique entity. Your practices, employees, and customers may be similar to those of your competitors, but they are rarely identical. You need to pick and choose KPIs that suit your unique business situation.

Custom KPI Measuring allows you to specify targets that more closely match your business goals and objectives. They collect data that reflects your actual business practices. Then, you can make business decisions that reflect exactly what's happening in real time.

If you want your business to consistently meet goals and objectives, it's all about getting the right data. If your system can't gather good data, you can't make good decisions.

Why Choose Custom KPIs?

Choosing custom KPIs gives you a more complete picture of your business success in relation to goals and objectives. Here are the real benefits to going this route.

1. Flexibility

Each business model is unique and so are the employees that work there. Writing custom KPIs gives you flexibility in measuring that specific data. You can assess how your business interacts with customers, call resolution rates, call quality and handling time.

What It Looks Like

Here's how flexibility might look with Custom KPIs.

  • Measure customer satisfaction with multiple types of interactions
  • Draw comparisons between unusual inconsistencies
  • Collect data according to how your calls come in
  • Customize your service levels
  • Adjust for seasonal and time block variations
  • Identify inclines and declines in various measurements over time

Be flexible in writing Custom KPIs to make sure the data you get is exactly what you need.

2. Creativity

Write them creatively to allow your employees to interact more organically within the workplace. It allows them to be fluid, to change with the unique situations that tend to arise in day-to-day business.

Creativity is vital to the growth and evolution of your business. Encouraging leaders to think outside the box keeps your business relevant and forward thinking. But, remember that those kinds of decisions do have an impact on your data.

You'll want to measure these unique, creative situations accurately. The outcomes of creativity can be astounding and unexpected. Use them to make better business decisions.

What It Looks Like

Here's a snapshot of some situations where creativity in your KPI Measurements can be a plus.

  • Employee creative responses to problem-solving
  • Measure customer data by unique indicators and groupings
  • Identify unexpected trends that produce forward momentum

Allow creativity into your KPIs for those unique situations that every business encounters. These can be some of the best growth opportunities!

3. Relevant

These are specific to your business, so they are more relevant than a canned KPI measurement. Custom KPIs are so specifically written that your data correlates directly with goals and objectives. It simplifies your decision-making process.

What It Looks Like

You might write relevancy into custom KPIs in these situations.

  • A specific, target customer base
  • Improve customer retention rates based on specific data
  • Quarterly department and employee performance measurement
  • Product popularity according to seasons and holidays
  • Increased calls or abandonment rates in specific time periods
  • Service levels adjustment based on your target market or industry

Making sure your data is relevant to your business practices is important. Make sure your KPIs reflect it!

4. Accurate

Standard KPIs might come close to hitting the mark. But, custom KPIs measure exactly what your business does and doesn't do. They are far more accurate in terms of data analysis.

Having an accurate picture of how your business practices work is vital. It can reflect company growth and decline effectively. Good business decisions hinge on that kind of accuracy.

What It Looks Like

Here's how accurate KPIs reflect on your business objectives an decisions.

  • Data reflects your actual daily work practice
  • Real-time picture of employee productivity, quality and job satisfaction
  • Decision making becomes more streamlined
  • Direct correlations can be made between products
  • List of real competitors can be narrowed down

Accurate data is the only data that matters. Make your KPIs work with as much accuracy as possible.

Assess Custom KPIs Routinely

Businesses that thrive are continually changing and evolving. To stay relevant, custom KPIs need to do the same. Be sure to set a routine time to reassess how they are working in relation to actual business practices.

Consider a semi-annual review of your custom KPIs. A small committee of managers from each department should be able to give insight into how well they are working. Require the committee to use actual data from your KPIs to support all claims and decision making.

Assess these items in your meeting:

  • Data accuracy
  • Changes in the business model
  • Updates in staffing
  • New product or contract offerings
  • Service area changes
  • Procedural changes

You need to give your custom KPIs time to work, but remember you're not stuck with them. Don't be afraid to update your KPIs if they're not reflecting the right data.

hat's the benefit of adopting Custom KPI Measuring strategies. They can evolve with your business and its unique customers, employees, and practices.

Benefit From Custom KPI Measuring

Don't settle for industry-standard KPI measurements. You can set Custom KPI Measuring strategies that are more specific to your business and it's objectives. You'll collect much more valuable data and make better decisions about the future of your business.

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