Examples of KPIs for functions and departments
Posted: Sun Dec 22, 2024 5:57 am
Management:
Customer lifetime value.
Return on equity.
Customer acquisition costs.
Sales target.
Net profit percentage.
Operating expense ratio.
Return on assets, etc.
Examples of KPIs for functions and departments
Source: shutterstock.com
Finance:
Current liquidity ratio.
Operating expense ratio.
Working capital.
Operating profit margin percentage.
Gross profit margin share.
Net profit margin percentage, etc.
Sales:
Comparative sales growth.
Customer churn rate.
Cost of customer acquisition.
Sales plan, etc.
Increase Profits by 200%: Download 5 Powerful Tools for Free
Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
Read more posts on my personal blog:
Over the past 7 years, we have conducted over 23,000 comprehensive website audits and I have learned that all of us as leaders need clear and working algorithms for our marketing and sales.
Today we will share with you the 5 most valuable 3 phone number identifier philippines documents that we have developed for our clients.
Download for free and implement today:
How to find out the 5 key marketing metrics in your company?
Step-by-step calculation template with fields where you can insert your data
How to make a KPI for a sales manager based on his work results?
Current template for calculating KPI for sales manager
9 Examples of Universal Selling Commercial Proposals
Upgrade your CPs to close more deals
Cold Lead Processing Script Template
A checklist of ready-made questions for engaging cold clients
7 Profitable Marketing Strategies Examples
Will help increase customer flow by at least 30%
Download the collection for free
pdf 8.3 mb
doc 3.4 mb
Already downloaded
153114
Key KPIs for 2025
Let's look at common KPI formulas for measuring and evaluating business success in 2025.
Revenue
Revenue is the total amount of money earned by a company over a given period of time. This key performance indicator is a critical indicator of a company's overall financial health and performance.
Gross profit
Gross profit is the amount of profit a company makes after subtracting its cost of goods sold (COGS). COGS includes the direct costs associated with producing and selling a product or service, such as materials and labor.
Net profit margin
Net profit margin is a financial ratio that measures a company's profitability by comparing its net income to its revenue. This metric helps companies understand how much profit they are making from each dollar they earn.
Conversion rate
Conversion rate is the percentage of website visitors who take a desired action, such as making a purchase or filling out a form. This metric is critical for companies that rely on online traffic to attract customers or increase sales.
Average order value
Average order value is the average amount customers spend on each transaction. This metric is useful for companies looking to increase their revenue by encouraging customers to buy more products or services.
Customer Lifetime Value
Customer lifetime value is the total amount of revenue a company can earn from a single customer over the life of the relationship.
This metric is important for companies that want to retain customers and increase their profits over time.
Case: VT-metall
Find out how we reduced the cost of attracting an application by 13 times for a metalworking company in Moscow
Find out how
Return on Investment (ROI)
Return on investment measures the profitability of a particular investment or marketing campaign. This key metric is critical for businesses looking to evaluate the effectiveness of their marketing efforts and ensure that they are delivering a positive return on their investment.
Customer Retention Rate
Customer retention rate shows the percentage of customers who continue to do business with a company over a certain period of time. This metric is important for companies that want to retain customers and ensure their long-term success.
Net Promoter Score (NPS)
Net promoter score or "net promoter index" measures the likelihood that customers will recommend a company to others.
This KPI is critical for companies that want to understand how satisfied their customers are and how likely they are to recommend their products or services to others.
Stages of implementation of KPI indicators in the work of the company
In the process of implementing KPIs, it is necessary to pay attention to the fact that these indicators will influence many processes. For example, the standards for employees will be based on the performance indicators and financial and economic action plans will be created.
Stages of implementation of KPI indicators in the work of the company
Source: shutterstock.com
It will be necessary to create a motivational system for employees, because otherwise the implementation of KPIs will simply not stimulate employees to take action.
It will be necessary to organize the training of managers for the new technology of tracking employee efficiency. This is necessary so that they have time to properly set up business processes of control and making tactical decisions.
Thus, the implementation of performance indicators will be successful if the following sequence of actions is followed.
Step 1: Define Key Business Metrics
You should discuss with managers and accountants the basic quantitative indicators that can most significantly affect production, and compare them with the activities of personnel or entire departments.
Once a direct correlation is identified, this indicator can be set as the most important one. But keep in mind that it is better not to overload the metrics system with an excessive number of indicators.
In this case, you can hinder the work of the management team and lose the organization's resources.
Step 2. Formation of the KPI matrix
After defining the most important KPI indicators, you should move on to identifying indicators that will indicate the efficiency of employees. In other words, you need to identify standards that will act as goals for employees for a specified period of time.
Step 2. Formation of the KPI matrix
Source: shutterstock.com
These standards should be aligned with the overall strategy of the enterprise and are usually divided into monthly, semi-annual and annual. However, you can also set other time limits that better suit your specific activities and goals.
It is extremely important that the standards are not excessively high. They should be drawn up without going beyond the limits of what is possible, because otherwise the company employee will simply not try to achieve the exorbitant plans. Experts recommend consulting with the end specialists of your organization, since they are the ones who can give the most sober assessment of the standards set.
The following KPIs are most often used in the B2B model:
Cash flow per employee or department.
Conversion of requests (applications/calls).
Traffic of requests (applications/calls).
Profit per employee or department.
The share of customers from previous periods in orders for the new period (customer retention).
Number of new customers attracted, etc.
The following KPIs are widely used in the B2C sphere:
Objection processing time.
Number and volume of sales.
Workflow compliance with scripts (based on hidden checks).
Service level (through customer feedback and mystery shopping).
Average bill.
Conversion of consultations/requests, etc.
All these KPIs for B2B and B2C models can be defined both for an individual employee and for the department/division as a whole. Now it remains to build a KPI matrix.
Customer lifetime value.
Return on equity.
Customer acquisition costs.
Sales target.
Net profit percentage.
Operating expense ratio.
Return on assets, etc.
Examples of KPIs for functions and departments
Source: shutterstock.com
Finance:
Current liquidity ratio.
Operating expense ratio.
Working capital.
Operating profit margin percentage.
Gross profit margin share.
Net profit margin percentage, etc.
Sales:
Comparative sales growth.
Customer churn rate.
Cost of customer acquisition.
Sales plan, etc.
Increase Profits by 200%: Download 5 Powerful Tools for Free
Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
Read more posts on my personal blog:
Over the past 7 years, we have conducted over 23,000 comprehensive website audits and I have learned that all of us as leaders need clear and working algorithms for our marketing and sales.
Today we will share with you the 5 most valuable 3 phone number identifier philippines documents that we have developed for our clients.
Download for free and implement today:
How to find out the 5 key marketing metrics in your company?
Step-by-step calculation template with fields where you can insert your data
How to make a KPI for a sales manager based on his work results?
Current template for calculating KPI for sales manager
9 Examples of Universal Selling Commercial Proposals
Upgrade your CPs to close more deals
Cold Lead Processing Script Template
A checklist of ready-made questions for engaging cold clients
7 Profitable Marketing Strategies Examples
Will help increase customer flow by at least 30%
Download the collection for free
pdf 8.3 mb
doc 3.4 mb
Already downloaded
153114
Key KPIs for 2025
Let's look at common KPI formulas for measuring and evaluating business success in 2025.
Revenue
Revenue is the total amount of money earned by a company over a given period of time. This key performance indicator is a critical indicator of a company's overall financial health and performance.
Gross profit
Gross profit is the amount of profit a company makes after subtracting its cost of goods sold (COGS). COGS includes the direct costs associated with producing and selling a product or service, such as materials and labor.
Net profit margin
Net profit margin is a financial ratio that measures a company's profitability by comparing its net income to its revenue. This metric helps companies understand how much profit they are making from each dollar they earn.
Conversion rate
Conversion rate is the percentage of website visitors who take a desired action, such as making a purchase or filling out a form. This metric is critical for companies that rely on online traffic to attract customers or increase sales.
Average order value
Average order value is the average amount customers spend on each transaction. This metric is useful for companies looking to increase their revenue by encouraging customers to buy more products or services.
Customer Lifetime Value
Customer lifetime value is the total amount of revenue a company can earn from a single customer over the life of the relationship.
This metric is important for companies that want to retain customers and increase their profits over time.
Case: VT-metall
Find out how we reduced the cost of attracting an application by 13 times for a metalworking company in Moscow
Find out how
Return on Investment (ROI)
Return on investment measures the profitability of a particular investment or marketing campaign. This key metric is critical for businesses looking to evaluate the effectiveness of their marketing efforts and ensure that they are delivering a positive return on their investment.
Customer Retention Rate
Customer retention rate shows the percentage of customers who continue to do business with a company over a certain period of time. This metric is important for companies that want to retain customers and ensure their long-term success.
Net Promoter Score (NPS)
Net promoter score or "net promoter index" measures the likelihood that customers will recommend a company to others.
This KPI is critical for companies that want to understand how satisfied their customers are and how likely they are to recommend their products or services to others.
Stages of implementation of KPI indicators in the work of the company
In the process of implementing KPIs, it is necessary to pay attention to the fact that these indicators will influence many processes. For example, the standards for employees will be based on the performance indicators and financial and economic action plans will be created.
Stages of implementation of KPI indicators in the work of the company
Source: shutterstock.com
It will be necessary to create a motivational system for employees, because otherwise the implementation of KPIs will simply not stimulate employees to take action.
It will be necessary to organize the training of managers for the new technology of tracking employee efficiency. This is necessary so that they have time to properly set up business processes of control and making tactical decisions.
Thus, the implementation of performance indicators will be successful if the following sequence of actions is followed.
Step 1: Define Key Business Metrics
You should discuss with managers and accountants the basic quantitative indicators that can most significantly affect production, and compare them with the activities of personnel or entire departments.
Once a direct correlation is identified, this indicator can be set as the most important one. But keep in mind that it is better not to overload the metrics system with an excessive number of indicators.
In this case, you can hinder the work of the management team and lose the organization's resources.
Step 2. Formation of the KPI matrix
After defining the most important KPI indicators, you should move on to identifying indicators that will indicate the efficiency of employees. In other words, you need to identify standards that will act as goals for employees for a specified period of time.
Step 2. Formation of the KPI matrix
Source: shutterstock.com
These standards should be aligned with the overall strategy of the enterprise and are usually divided into monthly, semi-annual and annual. However, you can also set other time limits that better suit your specific activities and goals.
It is extremely important that the standards are not excessively high. They should be drawn up without going beyond the limits of what is possible, because otherwise the company employee will simply not try to achieve the exorbitant plans. Experts recommend consulting with the end specialists of your organization, since they are the ones who can give the most sober assessment of the standards set.
The following KPIs are most often used in the B2B model:
Cash flow per employee or department.
Conversion of requests (applications/calls).
Traffic of requests (applications/calls).
Profit per employee or department.
The share of customers from previous periods in orders for the new period (customer retention).
Number of new customers attracted, etc.
The following KPIs are widely used in the B2C sphere:
Objection processing time.
Number and volume of sales.
Workflow compliance with scripts (based on hidden checks).
Service level (through customer feedback and mystery shopping).
Average bill.
Conversion of consultations/requests, etc.
All these KPIs for B2B and B2C models can be defined both for an individual employee and for the department/division as a whole. Now it remains to build a KPI matrix.