Category Archives: All Private Industries

Service requests outstanding

Definition:
Service requests (faults, works requests) outstanding. This can be used as an indicator for the workload for the after sales department , or to measure the trend line of numer of outstanding requests. A rise in request may point to low production or service quality.

Calculation:
Sum of service requests with status outstanding

This KPI is measured as: Number (amount Of Units, Rating, Etc)

Interpretation of results: Lower Is Better

Strategic objective:
Retention of customers/minimize negative comment in the marketplace

Order entry error rate

Definition:
Rate of orders that has been entered incorrect into the system. The higher the number of incorrect entries, the less streamlined the further process of delivery will pass off. Mind that higher number of errors can be an indicator of a higher pressure of work.

Calculation:
(Number of incorrect entered orders / total entered orders) * 100%

This KPI is measured as: Percentage (%)

Interpretation of results: Lower Is Better

Strategic objective:
Efficient operations

Visits to top customers

Definition:
Number of visits made to a predefined set of customers (high potential, top 10 customers in turnover or profitability, etc.) to maintain and/or build a long term relationship with those customers.

Calculation:
Number of visits

This KPI is measured as: Number (amount Of Units, Rating, Etc)

Interpretation of results: Depends On The Goals

Strategic objective:
Long-term relationship with profitable customers

Returns

Definition:
Percentage of returned products. The cause of the measured returns are worth measuring: are they damaged or broken or is the customer simply not satisfied with it?

Calculation:
Returned products / Total sold products

This KPI is measured as: Percentage (%)

Interpretation of results: Lower Is Better

Strategic objective:
Increase profitability; Customer Satisfaction

Rate of client relationships producing significant net profit

Definition:
Gives an indication of the profitability of customers. If a certain percentage of customers has no significant net profit, the debtor-risk for the organization will increase.

Calculation:
Relations with significant net profit / Total number of relationships

This KPI is measured as: Percentage (%)

Interpretation of results: Higher Is Better

Strategic objective:
Increase profitability

Number of customer referrals

Definition:
Number of potential (customers) that have been referred to the organization by a certain predefined third party, e.g. clients or suppliers.

Calculation:
Sum of referrals

This KPI is measured as: Number (amount Of Units, Rating, Etc)

Interpretation of results: Higher Is Better

Strategic objective:
Increase profitability

Market share

Definition:
Proportion of business in a given market; part of turnover of the company compared to the turnover in the whole market.

Calculation:
(Turnover of the company within a specific market / Total turnover within that market) * 100%

This KPI is measured as: Percentage (%)

Interpretation of results: Higher Is Better

Strategic objective:
Increase profitability

Direct communications

Definition:
Average number of contacts made with customers. A possible dimension is the organizational level, e.g. contact per department or customer, or client categories, e.g. top 10 clients.

Calculation:
Sum of contact moments

This KPI is measured as: Number (amount Of Units, Rating, Etc)

Interpretation of results: Depends On The Goals

Strategic objective:
Increase profitability

Sales taken up by top customers

Definition:
Sales of goods and services taken up by the key customers of the organization, i.e. top 10% to 20% of customers. Top has to be predefined: is it based on number of purchased goods, turnover, or something else?

Calculation:
(Amount of sales by key customers / total amount of sales) * 100%

This KPI is measured as: Percentage (%)

Interpretation of results: Depends On The Goals

Strategic objective:
Increase profitability

Customers lost

Definition:
Number of customers, or the percentage of customers from the total customer file, that has been lost and is not a customer anymore.

Calculation:
Amount of lost customers, or the amount of lost customers / total number of customers

This KPI is measured as: Percentage (%)

Interpretation of results: Lower Is Better

Strategic objective:
Increase profitability, Long-term relationship with customers