Key Performance Indicators For Your Event Management BusinessSeptember 20 | 9 min read
The best way to monitor the performance of your event business is to know what you can do to make the most of it, isn’t it? The first thing you need to do is to lay out a plan and identify your key performance indicators so that you can understand the performance of your event management business and where it needs to improve in order to succeed. It can be a difficult task to identify these indicators because so many factors must be taken into account when it comes to identifying them.
Especially for event management companies that are just getting started, knowing where to focus your attention might be a challenge. Many factors will play a role in determining the performance indicators you choose for your event business. However, not all of them will be relevant to your business or to any other business for that matter. Here are 15 essential performance indicators you should monitor as a business, that’s right not just events management businesses, but any business, to help you get started.
Let’s jump in!
Time to Onboard New Hires
Time to onboard new hires can be a valuable KPI for organizations. By tracking this metric, organizations can identify inefficiencies in their onboarding process and work to improve it. Additionally, by analyzing trends over time, organizations can better understand how their onboarding process is impacting new hire retention.
There are a few different ways to measure the time to onboard new hires. One way is to track the number of days it takes from when a new hire starts their job to when they are fully productive. Another way is to track the number of days it takes from when a new hire starts their job to when they are fully proficient in all required tasks.
Your event business should choose the metric that best aligns with their goals. For example, if improving new hire retention is a goal, then tracking the number of days it takes from when a new hire starts their job to when they are fully proficient in all required tasks would be a more relevant metric.
Productivity is a measure of how much work is getting done in a given period of time. It’s important because it’s a good indicator of how efficient your employees are and how well your business is doing overall.
Higher productivity usually leads to higher profits, so it’s a key performance indicator for any business and something most businesses are currently obsessed with improving.
One of the best ways to monitor productivity is via performance review comparisons. If you can see marked improvements quarter over quarter or year over year in employee performance data, it’s a good indication the company is likely also performing well.
Safety and Employee Well-being
Safety and employee well-being are important for a few reasons. First, happy and healthy employees are more productive. Second, a safe work environment is a legal requirement in most jurisdictions.
What’s more, customers will be more likely to do business with you if they know that your employees are safe and happy. Therefore, safety and employee well-being are key performance indicators for any business.
Of course, revenue by itself doesn’t give you the full picture because you need to factor in costs, especially in events business because each event is different, but it’s still one of the most important performance indicators for any business. This is because revenue is a measure of how much money your business is bringing in and, ultimately, this is what determines your bottom line.
It’s a good proxy for how popular and/or marketable your products and services are, which means that it’s a key indicator of how successful your business is.
Customer satisfaction is another key performance indicator across business functions because it’s a measure of how happy your customers are with your products and services.
This is important because happy customers are more likely to continue doing business with you and they’re also more likely to recommend you to others. This means that customer satisfaction is a good proxy for both future revenue and publicity.
Employee satisfaction is important for a few reasons. First, happy employees are more productive employees. Second, happy employees are more likely to stay with your company, which saves you money in turnover costs.
Finally, happy employees tend to create a positive work environment, which makes it more enjoyable for customers to do business with you. All of these things contribute to the bottom line, which makes employee satisfaction a key performance indicator for any business.
Turnover is a measure of how many employees are leaving your company. High turnover can be expensive and disruptive, so it’s important to keep it low. Turnover can also be a good indicator of employee satisfaction because unhappy employees are more likely to leave. Therefore, turnover is a key performance indicator for any business.
Quality is a measure of how good your products and services are. It’s important because it’s a key determinant of customer satisfaction. If your products and services are high quality, customers will be more satisfied and more likely to continue doing business with you.
At the end of the day, quality is a key performance indicator for any business and quality insurance is something that most businesses need to invest in.
On-time delivery refers to how often you’re able to deliver your products and services on time. It’s important because it’s a key factor in customer satisfaction. If you’re regularly late with deliveries, customers will be unhappy and may take their business elsewhere. Therefore, on-time delivery is a key performance indicator for any business.
Inventories refer to the materials, products, and supplies that you have on hand. They’re important because they’re a key factor in your ability to deliver products and services on time. If you don’t have enough inventory, you’ll be late with deliveries.
Conversely, if you have too much inventory, you’ll tie up too much capital in stock, which can hurt your bottom line. Therefore, inventory levels are a key performance indicator for any business.
Absenteeism is a measure of how often employees are absent from work. It’s important because it’s a good indicator of employee satisfaction. If employees are regularly absent, it’s a sign that they’re unhappy and may be looking for another job.
Employees that are constantly taking sick days or requesting to come in late and leave early are often a sign of a problem, so businesses need to monitor this indicator closely.
Sales growth is a measure of how much your sales are increasing (or decreasing) over time. It’s important because it’s a good indicator of the health of your business. If your sales are growing, it means that your business is doing well and customers are interested in what you’re selling.
If your sales are declining, it may be a sign that your business is in trouble and you need to take action to turn things around. Part of scaling up sales growth involves creating a sales forecast and plan that makes sense and you can easily act on.
Market share growth
Market share growth is a measure of how much your business is gaining (or losing) market share over time. It’s important because it’s a good indicator of the competitiveness of your business.
If you’re gaining market share, it means that you’re doing better than your competitors and customers are interested in what you’re selling. However, if you’re losing market share, it may be a sign that your business is in trouble and you need to take action to improve your competitiveness.
Cost per unit produced
Your cost per unit produced (also known as your “unit cost”) is a measure of how much it costs you to produce one unit of your product or service. It’s important because it’s a good indicator of your business’s efficiency.
The lower your unit cost, the more profitable your business will be. Therefore, businesses should always be looking for ways to reduce their unit cost. You might do this through process improvements, economies of scale, or by using cheaper materials.
Customer acquisition costs
You want to increase your customer/client base, but you want to do so in the most economical way possible. If you are spending more on acquiring a customer than you make off their business, what’s the point? Therefore, your customer acquisition costs (CAC) are a key performance indicator for any business.
Employee retention rate
Your employees are your business and any company that fails or refuses to see this is in for a rude awakening if and when people start leaving en masse. If you have a high employee retention rate, it means that your employees are happy and less likely to leave.
Therefore, businesses should always be looking for ways to improve and better track their employee retention rate. You might do this by offering better benefits, increasing salaries, or providing more opportunities for advancement.
Monitoring these 15 key performance indicators will give you a good idea of how your business is doing and where you need to make improvements. By doing so, you can ensure that your business is on the right track to success.
In order to grow your business, acquire a bigger market share and find success, you need to be diligent about setting out accurate and reliable performance indicators and then monitoring them on a regular basis.
Keep the above in mind and do business with the confidence that you are keeping your finger on the pulse of the things that really matter, both internal and external.