Overview

KPIs are measurable indicators that show an organization’s key success aspects.
They let a company assess its strengths and weaknesses and compare performance to a strategic strategy. KPIs are used in NetSuite to track a wide range of company metrics, including customer satisfaction and financial success.

A well-known NetSuite KPI checklist offers a structure for keeping an eye on important company operations. These indicators, which are based on real-time data, help you make educated decisions, identify areas that need development, and assess if you’re on pace to meet your goals.

Key Takeaways: 

• Provide a list of all the NetSuite key performance indicators (KPIs) and their explanations. 

• Learn how to use NetSuite’s tools and dashboards to effectively monitor, assess, and make choices based on KPIs. 

• Acquire more sophisticated methods for monitoring KPIs such as combining NetSuite with BI software.

In the process of finding a potential company, many companies look for ways to improve their workflow and boost output. ERP solutions, such as NetSuite, are a good way to make your business successful because they analyze your business system thoroughly. We invite you to look through our archives to see how NetSuite has helped other companies. In those documents, we provide case studies that illustrate how businesses have used NetSuite solutions to accelerate growth, improve efficiency, and streamline operations.

Understanding KPIs in NetSuite

NetSuite provides a number of features that assist companies in efficiently tracking and managing KPIs. Among the most significant is the personalized NetSuite dashboard, which summarizes vital metrics on its user interface. With the use of graphs and charts, users can define personalized KPIs, goals, and track their progress in real time.

How to use NetSuite effectively for tracking KPIs:

• Dashboard Modification: The dashboard KPIs can be changed based on your position inside the organization. Because NetSuite dashboards are so customizable, you can display your function’s KPIs on the dashboard.

• Establishing KPI Objectives: Every KPI needs to be in line with SMART (specific, measurable, attainable, relevant, and time assessed) objectives. Using NetSuite you may define goals and track your progress toward them.
  
• Using Scorecards: NetSuite Scorecards may be used to construct specific sections that facilitate the monitoring of performance across several business domains. They allow you to incorporate milestones and KPI techniques at the same time.

• Real-Time Reporting: Unlike NetSuite which displays changes instantly, most performance software has a time lag for tracking KPI changes. This makes it easier to identify issues and take preventative measures.

Types of KPIs in NetSuite

The unique KPIs you monitor in NetSuite will vary based on your business model, industry, and strategic goals. Nonetheless, the majority of firms can benefit from a few standard KPIs. NetSuite users can modify the following KPI checklist:

1. Financial KPIs:

One of the financial KPIs is the revenue growth rate, which determines the percentage increase in revenue over a specified time period. This KPI displays the overall health of the business and its potential for growth.

• Gross Profit Margin: This KPI displays the profitability of your primary business activities. (Revenue – Cost of Goods Sold) / Revenue is how it is computed.

• Net Profit Margin: After all expenses are deducted, this KPI measures total profitability. It is computed as revenue divided by net income.

• By dividing operating expenses by sales, you may get your company’s operational expenses ratio.

• Cash Flow: Monitors the flow of funds into and out of the business, which is essential for maintaining liquidity and funding growth.

2. Sales KPIs: 

The sales conversion rate is the proportion of leads that turn into clients. This KPI displays the effectiveness of your sales and marketing campaigns.

• Average Deal Size: This KPI illustrates the value of each sale and can be used to identify upselling and cross-selling opportunities. It is calculated by dividing total revenue by the number of deals.

• Customer Acquisition Cost (CAC): Determines the price of acquiring a new customer. With the help of this KPI, you can evaluate how well your customer acquisition strategies are working.

• Sales Cycle Length: Indicates the amount of time needed to complete a transaction from the initial point of contact to the final purchase. The sales cycle can be shortened to boost efficiency and revenue.

3. Marketing KPIs:

Website traffic measures the number of visitors to your website. This KPI displays the effectiveness of your online marketing initiatives.

• Lead Generation Rate: Determines the number of leads generated within a specified time period. This KPI demonstrates the effectiveness of your lead generation initiatives.

• The cost per lead, or CPL, shows how much a lead costs. With the help of this KPI, you can evaluate how well your lead generation activities are working.

• Customer Lifetime Value (CLTV): Calculates the estimated revenue a customer will provide for the company during their tenure. This KPI directs customer acquisition and retention strategies.

4. Customer Service KPIs:

CSAT, or customer satisfaction, is a crucial KPI for customer service, and it measures how satisfied the customers are with the company’s goods and services. The common methods for measuring this KPL are surveys and feedback forms.

• Net Promoter Score (NPS): NPS serves as an index for understanding the loyalty of customers and how likely they are to promote the services of the business to others. Often survey participants are asked, “How likely are you to recommend our company to a friend or colleague?” to measure this KPI.

• Customer Retention Rate: This metric refers to the percentage of customers that remain with you after a certain period. It is often cheaper to take care of existing clients than chase after new clients.

• Average Resolution Time: This KPI tracks the time required for responding to and resolving client care issues. Reducing resolution time can improve customer retention and satisfaction.

 

5. Operational KPIs:

The rate of inventory turnover defines how fast you sell off your existing stock and purchase new stock. A high inventory turnover ratio suggests that your stocks are being efficiently managed.

• The order fulfillment rate represents how many orders are filled correctly and on time as a percentage of total orders. This KPI shows how effective your order fulfillment system is.

• Production Cycle Time: Counts time from the moment production starts until a product’s manufactured. Shortening the period of production cycle increases profit margins through reduced operational costs and increased efficiency.

• Employee Productivity: Determines revenue per worker which provides an indication of the productivity of an employee with regard to his contribution. This KPI helps you understand how more productive your employees are.

As your company expands, make sure to pick KPIs that resonate with your principles and consistently review and modify them.

 

Advanced KPI Monitoring: Melding BI Tools with NetSuite

While NetSuite possesses powerful KPI monitoring capabilities, business intelligence tools can aid in more advanced analysis and visualization. Businesses with these needs may benefit from a custom integration with NetSuite. The combination of NetSuite data with BI tools allows for unrivaled construction of specialized dashboards, as well as permitting deeper analysis and insights that were not readily available. 

Some benefits from the integration of NetSuite with other BI tools:

• Automation of Reports: BI tools provide opportunities such as trend analysis, prediction, and modeling along with complex analytical capabilities, which can be effortlessly automated.

• Flexible Business Intelligence: BI tools help in making uncompromised customizable dashboards that showcase KPIs according to individual preferences.

• Enhanced Understanding of Data: BI solutions come with a variety of data visualization tools, including but not limited to maps, graphs, and charts to make understanding complex data easy.

• Insight Generation: BI tools enable you to pull data information from multiple platforms such as NetSuite, CRM, and marketing automation tools to derive insight into your business.

By using BI tools along with NetSuite, you may gather the information you need to make decisions, streamline processes, and increase growth. By doing this, you can set your organization up for success.

Final Thoughts

NetSuite KPI checklist is one way to monitor performance in your business’s activities and implement strategies for improving it. Knowing the different types of KPIs, utilizing the NetSuite system’s built-in functions, and connecting to BI for further analysis will allow you to derive actionable insights and enhance your business operations. To see how other companies have successfully implemented these strategies, view our customer success stories at https://netsuite.folio3.com/success-stories/. 

Keep in mind that the most appropriate KPIs will differ depending on your specific business needs, and it’s important to regularly review and adjust your KPI checklist NetSuite to ensure it remains relevant.