A graph of key performance indicators.

The Ultimate Guide for KPIs

October 13, 2022
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KPIs – Key PURPOSE Indicators: your contribution, your impact, and your WHY – help you align action with purpose.

Key Takeaways:

  • To define your key purpose indicators, use the three elements of purpose: your contribution, your impact, and your WHY
  • KPI metrics help you assess how your business’s purpose execution
  • Important KPIs to track:
    • Customer acquisition cost 
    • Incremental sales
    • Sales growth
    • Sales cycle length 
    • Lead-to-client conversion rate 
  • For each KPI, define:
    • KPI description and purpose
    • KPI owner
    • KPI target

Your business’s purpose drives everything you do. It’s why you want to lead the business. It’s what brings you and your team to work every day. It defines the contribution you offer and makes a positive impact on your world.

Your purpose has three key elements: your contribution, your impact, and your WHY. Without the right metrics, you won’t be able to successfully fulfill your purpose. You won’t know how your strategies and work impact your bottom line and business growth. Key purpose indicators – the new and improved KPI metrics – power your purpose. 

This complete KPI business guide helps you learn how to define your key purpose indicators and gives examples of some of the most important KPIs a company should integrate. It also provides a detailed template to use for each of your KPIs. You can use this helpful template to fill in your information and get a better grasp on how you’re executing your purpose.

How to define your key purpose indicators

To come up with your key purpose indicators, we need to revisit and dig into those three key elements of your purpose: 

  • Your contribution
  • Your impact
  • Your WHY

Your contribution is what you bring to the table. It’s your mission. Your dedication to contribution is what you execute every day with a firm commitment.

Your impact is all about your dream. You started your business for a reason and saw that you could have a significant impact on your audiences. It’s why the world will be a better place with your organization playing an active role in it.

Your WHY is the reason behind what your business does. What drove you to start or lead this business? What’s the motivation behind providing your particular products or services?

Figure out these three key components, and you’ll be able to define, understand, and share your purpose. And from your purpose comes your key purpose indicators.

Your KPIs are the metrics that help you assess whether you live out loud. They are closely aligned with your business goals and provide essential data that guides you to make better business decisions and pivot when necessary. 

Most important business KPIs and how to use them

KPI metrics underpin every aspect of the business. Dig in deeper to define and track them. You will recognize how important the data is to understand where your business stands, how happy your customers are, and where you might be headed in the future. Here are KPIs to track now. 

Customer acquisition cost

This measures what you spend on acquiring each new customer. Costs included fall within marketing and sales efforts. Take a look at what makes your sales funnel move and align the financial and emotional value of your clients.

Incremental sales

These are the sales you get with your marketing strategy on top of your average recurring revenue. This number tells you how effective your marketing or sales efforts are in terms of sales numbers and perhaps more importantly, in terms of connecting with your purpose.

Sales growth

To measure your sales growth, you’ll need to look at a specific period, like a quarter. Track the percentage your sales increased when compared to the last quarter. This is a good indicator that your purpose is aligning with your goals.

Sales cycle length

You need to know how long it takes to close a deal with a lead, which opens your eyes to places that could use some additional training or support. Sales cycle length is how long it takes from a lead’s first contact all the way to close. Knowing what it takes to connect and align with your clients makes all the difference in nurturing that desired relationship

Lead-to-client conversion rate

This metric indicates the number of qualified leads you convert, which tells you how effective your business is with conversions. This is a vital piece of information, as it ensures you’re making the emotional connection that leads the way to your core goals.

Track these key purpose indicators and see greater success for your company. We have the why, but it’s equally important to understand the how.

KPI template for your business

Now you know some of the most crucial KPIs to track and monitor. But what will the process actually look like? Start with this simple KPI template for each of the above metrics:

  1. KPI description and purpose

  • What is the KPI, and why does it matter? 
  • What goals does this KPI help you meet? 
  • How do you calculate this metric?
  1. KPI owner

  • Who is involved in this KPI? 
  • Who will track the KPI and report the data?
  • Who needs to know about the progress of this KPI?
  1. KPI target

  • What is the measurable goal for this KPI?
  • How do the actuals compare to the target?
  • How have the targets or actuals changed over time, and why?

Visit each of these sections to set up a process for identifying, tracking, and measuring KPIs so you can incorporate what you find into business decision-making. 

Link your purpose with better marketing performance

Your purpose drives the products or services your business provides, and it should drive marketing and sales metrics, too. When you align your efforts with your 3 Keys – Purpose, Values, and Story – your customers will see authenticity, and your business performance will improve.

Work with the team at Advantages to create more effective tool sets for marketing and sales, building equity, and accelerating revenue. We guide you to connect profit to purpose with strategically led marketing teams.

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