Class 2

Question 1

What are KPIs? What are examples?

Answer 1

KPI is a way to monitor progress towards goals / identify areas of improvement

Question 2

What are examples of KPIs?

Answer 2

• Revenue growth
• Gross Margin
• Average order value
• Total sales revenue
• Sales by product group
• Sales per month or weekday

Question 3

What is the order in finding out WHY a kpi fails to meet a specific performance goal?

Answer 3

Look at:
1. KPI

Analyze trends in:
2. Financial indicators

Look at:
3. Revenue & cost drivers

Which leads you to
4. Business events – what might have happened

Question 4

What are examples of financial indicators for gross margin?

Answer 4

Financial indicators:
- Revenue (less)
- Cost of sales