Why business intelligence and the financial dashboard are your best allies for analysing your KPIs
You have probably noticed that your business sales strategy has evolved over the years, often adapting to new targets and market conditions. Especially over the last few months, you have seen how your strategy has had to adapt to unstable and ever-changing market conditions, and you probably find it very difficult to know how well you are optimising your finances. In other words, you may find it difficult to tell if you are near or far from achieving your goals. KPI analysis is here to help you understand the financial reality of your business. Do you already know what they are?
What are KPIs or key performance indicators?
KPIs, also known as performance indicators, are indexes that show the performance of a process and are normally expressed as a percentage. The analysis of these percentages (KPIs) is performed as part of a business activity monitoring process and uses business intelligence tools. Its purpose is to create a reflection of the current state of the business based on the analysis of targeted data to guide the company’s future actions.
But what data is reflected in the KPI's? Here we show you some of the most relevant data to keep track of your business:
- Sales volume: find out the total number of sales, their geographical distribution, the type of currency in which they were made, the business model they come from (physical or online), among others.
- Transaction Activity: It allows you to track your business transactions, such as the acceptance rate, the rejection rate, or the fraud level. Do you have the level of payment acceptance you want? What are the causes behind transaction rejection? These are some of the questions that transaction activity KPIs will allow you to answer.
- Risk control: thanks to which you can monitor your business’ chargebacks, refunds, and fraud levels. Control your chargebacks, refunds, and fraud level, in real-time and from different perspectives. Is your anti-fraud strategy enough? Do you need to implement new measures to optimise risk control? All these measures and more are what you can include in your company's management control strategy.
Now that you know the most important indicators to analyse your company's financial performance, you can see if you are close to achieving your goals, and redirect your strategy.
Define your strategy with specific and realistic goals: the key to achieving results
To promote the achievement of the objectives set within your company's business strategy, it is also important that KPIs are in line with certain parameters, as set out in the well-known acronym SMART:
- Specific: Goals must be defined as concretely as possible. Breaking down and naming each of the components that come into play and determining this goal's achievement is key to analyzing its evolution and future achievement.
- Measurable: numbers, numbers, and numbers. How can you measure the evolution of your goal? Systematising each variable and attributing a unit of measurement to it is the only way to analyse your business KPIs with the utmost accuracy.
- Achievable: Being ambitious is good... But always keeping realistic goals in mind. Wanting to achieve too much is practically synonymous with failure, especially considering that, at this time, it is more effective to set smaller, shorter-term objectives, and to re-evaluate the strategy more frequently.
- Relevant: Knowing how to choose the KPIs that best align with your company’s final objectives is the basis of good management control. Do you want to know how to execute your best business strategy using expert business intelligence tools? Contact PayXpert's team of financial experts for no-obligation advice on how to get the most out of fintech to achieve the results you're looking for.
- Timely: Finally, after choosing, defining, and measuring the objectives, it is important to distribute them over time. It is important to bear in mind that it is the short- and medium-term objectives that are most in line with market conditions and are therefore more likely to be achieved. The longer-term they are, the more favourable it is for objectives to be general rather than too specific. Remember: they must be achievable.
Business intelligence with one of the fintech leaders, PayXpert
Let's get down to work. Now that you know how to define your business goals, and how KPI analysis can help you achieve them... how do you start optimising your business finances like an expert? One way to perform the best management control and advanced KPI analysis is to team up with a financial partner. With our business intelligence tool, you will be able to keep track of your finances’ most decisive values. Using the big data generated through your activity, we create graphs and maps that allow you to monitor the evolution of your business life and at a glance in an intuitive and highly usable dashboard. Contact us to request a demo.
PayXpert has been developing intelligent financial information management and payment technology solutions since 2009. Today we are recognised as one of the leaders in the European fintech sector. Why? Because we are financial experts who develop specialised technology to help both SMEs and large companies achieve their results and achieve their goals. Do you want to start getting results? Integrating fintech services into your business is an investment in the future of your business, a cost-effective way to offer the best to your team and your customers. Visit our website and get to know these and the rest of our services and tools, shall we talk?