AI Agent Crew

Data Tips #14 – How to choose KPIs

In todays Data Tips we are diving into one of the really hard topics, mainly because there is no silver bullet.

There are however a few very important points to keep in mind when choosing KPIs and there is a way of handling them that may support you in choosing and handling KPIs.

Four important steps to take when choosing KPIs are:

  1. Determine how you know when you have succeeded – This is probably the most important step of them all, because this reflects your business goals and the approach of your business. Example: “Low number of incidents”, “Loyal customers with large share of wallet”, etc
  2. Determine what type of behaviour you want to drive – The KPIs you set will determine the behaviour that you drive since fulfilment of the KPI represents “winning”. Example: “We want to ensure that my teams are testing properly before going to production”, “We want our customer communication to be personalised and give our customers the best offers”, etc
  3. Define the actual metrics that both represents success and the behaviour you want to drive – Set down the concrete definitions of the KPIs, how they are defined and what data lies underneath. Example: “# of IT Incidents of Prio 1 & 2”, “Percentage of redeemed personalised offers”, “# of customers with purchase of over x SEK / Month”, etc
  4. Test your KPIs on someone outside your inner circle – For a good sanity check it is always valuable to test your KPI on someone that is not immersed in your strategy and tactics so you can get an outside perspective.

So in summary, determine what your goals are, what behaviour you want to drive and then test it on someone external.

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