Why predictive KPIs better inform business change

Use metrics designed about prediction rather than outcomes to better drive revenue and customer engagement.

Investment in digital transformation initiatives is on the rise. Our latest publication explores if that investment is being made in vain.

According to a report by IDC, digital transformation spend by businesses worldwide is expected to hit 1.7 trillion dollars in 2019. However, businesses are quickly realising that the investment they’ve made does not match the return.

The most significant reason why businesses are failing to get the desired returns from their digital investments is that they are monitoring the wrong performance metrics. If you want to see a significant return you need to change your approach to performance metrics. In short, it’s far better to focus on two key predictive metrics which will help you centre your organisation around customers than to rely on trailing indicators.

Here’s a breakdown of the key takeaways from the piece:
The take away: Handpick core predictive KPIs and structure your business around them.

Businesses that want to use their metrics to improve and see a higher ROI as a result, need to pick a few KPIs that open-up greater understanding and alignment behind business initiatives. You’ll see the most success if those KPIs are leading indicators, and the customer experience can be engineered to respond to that indicator in real time to deliver the business outcome desired.

Read the article in full here on Information Age: Companies are wasting millions on digital investment because they are measuring the wrong KPI

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