Business Performance Management - Metrics and Key Performance Indicators

Metrics and Key Performance Indicators

Some of the areas from which bank management may gain knowledge by using business performance management include:

• customer-related numbers:
  • new customers acquired
  • status of existing customers
  • attrition of customers (including breakup by reason for attrition)
• turnover generated by segments of the customers - possibly using demographic filters
• outstanding balances held by segments of customers and terms of payment - possibly using demographic filters
• collection of bad debts within customer relationships
• demographic analysis of individuals (potential customers) applying to become customers, and the levels of approval, rejections and pending numbers
• delinquency analysis of customers behind on payments
• profitability of customers by demographic segments and segmentation of customers by profitability
• campaign management
• real-time dashboard on key operational metrics
  • overall equipment effectiveness
• clickstream analysis on a website
• key product portfolio trackers
• marketing-channel analysis
• sales-data analysis by product segments
• callcenter metrics

Though the above list describes what a bank might monitor, it could refer to a telephone company or to a similar service-sector company.

Items of generic importance include:

1. consistent and correct KPI-related data providing insights into operational aspects of a company
2. timely availability of KPI-related data
3. KPIs designed to directly reflect the efficiency and effectiveness of a business
4. information presented in a format which aids decision-making for management and decision-makers
5. ability to discern patterns or trends from organized information

Business performance management integrates the company's processes with CRM or ERP. Companies should become better able to gauge customer satisfaction, control customer trends and influence shareholder value.