Tips for Choosing the Right KPIs

“If we track everything, we’ll finally feel in control.” That’s what a founder told me before launching a 60+ KPI dashboard. It was real-time. Color-coded. Mounted on TVs across the office like a Formula 1 pit wall. And it completely backfired. Here’s what actually happened: - The founder checked it every hour… and panicked when a number dipped. - Meetings turned into 45-minute metric marathons. - The team checked out, not because they didn’t care, but because they didn’t understand what mattered. The truth? Startups don’t fail because they lack data. They fail because they track everything, and act on nothing. More metrics = more noise. More dashboards ≠ more clarity. So… how do you choose the right KPIs? Start here: 1. Anchor to a core objective. What does success look like right now? (Retention? Burn runway? Gross margin?) 2. Define decision-making needs. If a metric doesn’t inform a clear decision, cut it. 3. Limit by team, not by dashboard. Give each leader 2–3 metrics they own, understand, and drive. 4. Make it human. A KPI is only useful if your team understands it. Talk about it. Teach it. Use it to drive action, not anxiety. It’s about shifting the conversation inside the company: → From reporting to decision-making → From panic to progress → From reactive leadership to aligned execution If you’re scaling and your dashboard looks impressive but feels like noise, it’s probably time for a reset. PS: Be honest, how many KPIs are you currently tracking?

Track the Right Numbers; Not Just the Loudest Ones 🚨 Stop Chasing Vanity, Start Scaling with Clarity Most business owners fall into the same trap, tracking the loudest numbers instead of the right ones. They obsess over follower counts, web traffic, or gross revenue, but completely ignore what actually drives scalable growth. Let me be blunt: Scaling your business isn’t about what looks good. It’s about what works. 💡 Early in my retail business career, I learned this lesson the hard way. We were tracking the wrong KPIs, foot traffic, sales per square foot, NPS, even daily cash in the till, without ever tying those numbers to margins, lifetime customer value, or conversion rates. Don't get me wrong, those aren't unimportant metrics, per se, but when you are trying to turn a profit, those aren't the most critical KPIs. We grew... but not at a significantly profitable rate. 📊 Here’s what changed everything: We shifted our tracking from noise to impact metrics. That meant focusing on: ✅ Customer Acquisition Cost (CAC) ✅ Lifetime Customer Value (LCV) ✅ Conversion Rate by Source ✅ Sales Velocity per Rep ✅ Retention and Churn Rates ✅ Net Profit Margins ✅ Forecast Accuracy vs Actuals And guess what? That clarity gave us control. 📈 According to a study by Harvard Business Review, companies that implement data-informed decision making grow 15-20% faster than their competitors. It’s not about tracking everything. It’s about tracking the right things. 🔥 Don’t just watch numbers. Let them tell you a story; one that fuels momentum, forecasts growth, and uncovers blind spots before they become breakdowns. If your current dashboard isn’t giving you confidence in your next move, it’s time to evolve your metrics. Because if you don’t know the scoreboard, how can you win the game? #MyBizCoaches #BusinessConsulting #FractionalExecutives #KnowYourNumbers #SmartScaling

You marketing team reduced CAC by 20%. New customers are up. But your revenue isn't growing. Many leaders assume metrics have fixed relationships. - More traffic = more sales - Lower CAC = better ROAS - Faster support = happier customers But these relationships aren't static. They shift constantly. When you push one metric without watching its counterparts, you often optimize the wrong things. You see this all the time. Dashboard looks all green, except for revenue or conversions...red. --- A good solution is to have "sister metrics" (paired metrics). For every metric you track, add a complementary metric that ensures you're creating real value: - traffic + cvr - cac + 90 day ltv - email signups + rev per subscriber - support tickets closed + csat - page speed + rev per user - trial signups + annual retention rate These pairs create guardrails that prevent single-metric tunnel vision. Every KPI needs a complementary metric that confirms you're creating real value. That the activities/inputs are also impacting the "output". --- 1. Focus on the primary kpi (revenue, profit, etc) then trace it backwards. 2. No metric stands alone. Every KPI needs a complementary metric that confirms you're creating value. 3. Keep it simple Start with just 2-3 critical metric pairs for each team. 4. You can check correlations regularly. Are the correlations staying the same? Bonus, there's usually a pattern. For example, as you add new traffic/channels it's common to see cvr or revenue/user decline. 5. Watch for divergence. When metrics that normally move together start moving in opposite directions, investigate. 6. (most important) Share this w/ your team to understand the actual business goal behind each metric they're asked to improve. "metrics/kpi trees" can be helpful in visualizing this. What key metric pairs do you track in your business? #measure #marketingkpis #bi

Having KPIs is smart 👍. Having too many KPIs is dumb.     In logistics, we're fond of saying what gets measured gets done. And while that’s true, when you try to track everything, you end up devaluing your own metrics. The result is you track nothing.     It’s tempting to add a new metric each time a new problem pops up. In the past, I myself have made this exact choice. "This went wrong, going forward let's measure X so it never happens again!" It was a comforting thought, because I hate making mistakes. And I especially hate making the same mistake twice.     But, when I look back at those situations, I realize I was just slapping a KPI on the problem as a band aid. I didn’t make the time to figure out the real root cause of the issue. I wanted the KPI to act as a piece of armor to shield me and my team from the problem ... but eventually, all that armor becomes a burden, weighing you down.     So here's a challenge: Take the armor off. All of it. Look at the KPIs you have in place and ask yourself some serious questions:     ❓What does this measure, and why is that important?     ❓ Is this the best measurement for that goal?     ❓ How much time does it take away from my team to track this KPI, and is it worth that value?     ❓ Have I ever once taken action after reviewing this KPI?     The answers will show you which of your KPIs are performative, instead of informative.     Let's ditch what doesn’t serve us anymore, and embrace what does. What KPIs do you find to be overkill, and which ones can't you live without?     #Logistics #ProcessImprovement #Shipping #KPIs #Leadership 

Many businesses struggle with financial reports because they track: • The wrong things • Not enough things • Too many different things The result? Confusion instead of clarity. Ask yourself: Why are you tracking that metric? If the answer is: “Because that’s what I was taught in school.” “The trade association said so.” “It’s what we’ve always done.” Then you are tracking data, not facilitating decisions. Instead, use Connected KPIs—a framework where each KPI links back to a strategic goal. 1. Start with your desired outcome (e.g., revenue growth, profitability). 2. Work backwards to identify the key drivers. 3. Focus on the lead domino (the metric that starts the chain reaction) What are the lead dominoes in your financial reporting?

Most businesses drown in metrics. Too many KPIs. Too many dashboards. Too much noise. The result? • Teams lose focus • Leaders chase symptoms, not signals • Time is spent updating charts, not solving problems Here’s the truth: You don’t need more data. You need the right few metrics that actually drive performance. Here’s a simple 5-step approach I use to help teams cut through the clutter: 1. Inventory everything – List all the metrics, who uses them, and why. 2. Map to purpose – If it doesn’t support a decision or priority, kill it. 3. Identify the vital few – Pick 3–5 metrics per function that truly move the needle. 4. Build a tiered system – Align top-level KPIs to functional and front-line measures. 5. Eliminate, consolidate, automate – Make room for insight, not reporting theater. Bonus Tip: Run a quarterly “Metric Clean-Up” session—if a metric doesn’t drive action or decision-making, it’s a candidate for retirement. Leading vs. Lagging Check: Ask yourself: Does this metric help us influence the future (leading)? Or just tell us what already happened (lagging)? If your dashboard is 90% rearview mirror, it’s time for a redesign. More focus = better execution. Want help finding your “critical few”? Let’s talk. #BusinessOperatingSystem #KPIs #ContinuousImprovement #Leadership #LeanThinking #Execution #SimplifyToScale #OperationalExcellence #DataDrivenDecisions #BOS #LeadWithMetrics

If you're building a data career, mastering the art of measurement planning can be one of the most effective ways to differentiate yourself from your peers. Companies need people who are thinking about this every time they launch a new initiative. If you can develop strong skills here, it can be your ticket to getting involved earlier on, in more projects, and to becoming seen as a true strategic partner in your organization. Here's what you should focus on... 1. Think Business First -> Resist the urge to dive straight into the data. -> Understand how critical this project is to the business. -> Ask what the key goals for the initiative are. -> What are the most important questions you'll answer? 2. Know Your Audience -> Who is driving the project? Is this the primary audience? -> What are the goals and incentives of key stakeholders? -> What data can you provide that will help them? -> What types of info may inspire them to take action? 3. Define the Key Performance Indicators (KPIs) -> For the goals identified, translate them to metrics -> Prioritize metrics based on importance to stakeholders -> Go a layer deeper, and think about KPI driving levers -> How do you picture optimizing the businesses KPIs? 4. Identify the Data Sources You'll Need -> Where will you get each data point you need? -> Who owns or manages each existing data source? -> Are the data sources available real-time? -> Are there gaps in existing data? How do you fill them? -> How can you automate or streamline reporting? If you can follow this framework, you should be able to break down any project and build a measurement plan that will help your organization identify goals, understand outcomes, and optimize performance to drive the business to new heights. We've got a free guide that goes deeper on this, called 'How to Build a Measurement' plan. CHECK IT OUT: --> https://bit.ly/3eaXGmq @ Data Pros - what else would you add here? #data #analytics #businessintelligence #measurement #planningforsuccess

This small shift in our finances helped us scale past $50K/month. We stopped focusing on revenue. And started tracking the right numbers: 1. Gross profit. Because revenue is a vanity metric if your costs are eating all your margins. We focused on delivering our services in the most efficient way possible. 2. Net profit. More revenue without margins is working harder for the same outcome. We got obsessive about efficiency: Cutting unnecessary software costs Negotiating better deals And streamlining operations To increase what we actually add to the bank every month. 3. Churn rate. It’s easy to celebrate new sales. But if customers are leaving just as fast, you're running on a treadmill. We optimized retention before acquisition. 4. LTV. Scaling without understanding customer lifetime value is a dangerous game. Once we figured out exactly how much a client was worth over time, we knew how much we could afford to acquire them. 5. LTV to Acquisition Cost Ratio. The simplest way to tell if your business is scalable. If you're paying more to acquire customers than they’re worth over time, you're in trouble. We optimized this ratio to make sure every dollar spent on growth actually paid off. You usually want to have a ratio of 3:1 of LTV/CAC. These five numbers moved us from "How much did we make this month?" to "How much will this business be worth in three years?" Most founders don’t track these. Don’t make that mistake. Track the right numbers. Make better decisions. Your growth depends on it. What’s the one metric you obsess over in your business? 👇 PS: Fuelfinance has been the best partner to help with our finances.