As can be seen from the table, the final indicator is 113.70%, which is, of course, a high result, but upon a more detailed analysis of the data, it becomes clear that the marketer did not achieve the planned values.
, let's imagine that the monthly salary of this phone number identifier philippines specialist is $900, which includes a salary of $600 and a bonus of $300.
If an employee reaches 100% of the KPI index, he is paid the full bonus and salary, but due to exceeding the set standards, he is rewarded with a bonus of 13.7% of the bonus part - $ 41.1. Ultimately, the employee's salary will reach $ 941.1 ($ 600 + $ 300 + $ 41.1).
Moreover, if a specialist fails to achieve the standard and his KPI index is below 99%, then the size of the bonus portion will be reduced depending on the degree of non-fulfillment.
These calculations and tables allow you to identify the problems and weaknesses that an Internet marketer has.
Given the organization's goals, other indicators can be included in these calculations, such as fine systems, the number of completed and uncompleted tasks, etc. For example, if the plan was completed by less than 80%, the employee loses the bonus altogether.
There is another method of determining wages in relation to the degree of fulfillment of standards:
KPI Index Premium coefficient
Below 70% 0
70-80% 0.6
80-89% 0.7
90-95% 0.8
96-98% 0.9
99-101% 1
102-105% 1.3
106-109% 1.4
More than 110% 1.5
Examples of KPI indicators for various businesses and their sections
Let's look at the main ones:
Profitability and efficiency
This category includes all KPIs that are related to the organization's profit. In addition to the well-known indicators of marginal income and net profit, more complex KPIs can be included here, indicating the level of business efficiency rather than direct benefits.
An example of a KPI in inventory management is the average number of days in inventory, which is referred to as days in inventory, which is a separate measure of profitability.
Profitability and efficiency
Source: shutterstock.com
Another example is estimating average daily inventory, which is calculated by taking the organization's year-end inventory and dividing that number by the total annual value of products sold, then multiplying that number by 365 days.
Too little inventory can result in the loss of a customer because they will not receive the necessary product at the right time. However, it is difficult to identify this problem without introducing KPIs.
Another example of a metric that can help identify potential user losses is the number of times a particular item's stock reaches zero.
If a person still hasn't found the necessary product, you can ask him what exactly he needed. A gift certificate or a discount can be used as an incentive. This type of data can be usefully used by an analyst.
In the tourism industry, the occupancy rate of hotel rooms and vehicles acts as a KPI. For example, when at least one room remains unoccupied in a hotel, this is considered lost revenue.
Relative to the significant fixed costs, which are also called sunk costs, variable costs per unit of output are not so significant.
Risks
Safety in production is an indicator that reflects the number of fines and injuries. If this indicator increases, the organization risks losing its reputation and incurring material losses.
For this reason, it is important to keep records of situations in which safety violations occur, and to monitor the number and severity of injuries sustained by employees.
By monitoring reputational risks, an organization can avoid situations that could lead to negative opinions about the brand.
An indicator here would be a so-called first-level product recall. The time until that point is a good indicator of such a threat.
With financial risks, everything is even more obvious. If an organization has income that is not able to cover its debts, then there can be no talk of a good business. Therefore, the ratio of these parameters should be taken into account.