Find which performance indicator best measures if the goal is being met?
An office supply company has launched a new portal for corporate customers with the goal of increasing repeat business by evaluating buying patterns and making proactive purchase recommendations. Which performance indicator best measures if the goal is being met?
OPTIONS
- The availability of the new portal is at par or above the service level target
- Total number of transactions processed in the portal per month
- Increase the average number of sales resulting from recommendations by 20% by the end of the fiscal year
- Reduce the number of customers opting out of proactive recommendations by 25%
ANSWER
Increase the average number of sales resulting from recommendations by 20% by the end of the fiscal year
EXPLANATION
This key performance indicator measures an increase in recommendations resulting in increased sales (the stated goal) and has specific measures (by 20%) and timeframe (by the end of the fiscal year). When an organization defines KPIs for each success factor, it is an indication that those KPIs will provide evidence of achievement or lack of it.
