Harnessing the power of data to make informed decisions for your association is one of the best tactics your staff can use to create an exceptional experience for members and suppliers. But what type of data should you be using to make this happen? Key performance indicators (KPIs) are an extremely valuable tool for any organization, and associations are no exception. By setting and tracking KPIs, you can see how well your association is doing and make the right decisions to improve the quality of membership.
What are KPIs?
Simply put, key performance indicators are used to measure success. They help identify how well your organization is doing and make decisions about where to focus your efforts.
KPIs should be specific, measurable, and achievable. They should also be relevant to the industry you're in — you don't want to set a KPI of "increase sales" if no one buys from you. They should be easy enough to obtain for everyone involved, otherwise, you could run into burnout and frustration.
KPIs come in many shapes and sizes depending on what exactly it is you want to achieve. For example, if one of your goals is to increase membership by 10% over the next year, then a measurable KPI could be "new member signups per month." If your goal is increasing revenue by 20% from last year then "total annual revenue from memberships" would be a good KPI.
How to set up a KPI system
Before you start developing a KPI system, it's important to define the problem. Ask yourself questions like, are we trying to increase membership? Or, do we want to increase the number of events held each year? Once you've identified what it is that needs improving, it's time for action!
- Setting goals: Focus on what makes sense for both your organization and its members. You could try something like this: "By December 2023 we will have increased our annual membership fee by 5%. In addition, we will host two new events per month throughout 2024." This leaves room for flexibility while still being ambitious.
You can use Excel or Google Sheets to track the progress of each KPI over time so that it becomes easier to see whether there has been any positive change since last year's figures were recorded — if not, then adjust accordingly.
- Documenting your plan: Your strategy should be clear and concise so that it can be easily communicated to staff members. The plan should also include a list of all the necessary tasks, as well as the people responsible for each task. The document will serve as a reference point for everyone involved, so it's important that it's easy to read and understand. It should include only the most important tasks, broken down into actionable steps that make sense for your staff members. Remember to leave some room for flexibility within these tasks.
- Creating a baseline: The baseline is the starting point for your KPIs, and it allows you to track how well they are performing over time. For example, if one of your KPIs is membership growth, then creating a baseline means documenting how many members you currently have, as well as your average percentage of growth. Knowing this baseline will help you determine what’s achievable.
- Measuring results: Once you have established your KPIs, it's time to measure the results and adjust your KPIs as needed. This is where you can start to make strategic decisions based on the information gathered. For example, if your membership growth KPI continues to fall short of expectations, then it might be time to consider whether there's a better way to reach the goal or change the goal entirely.
Conclusion
Measuring KPIs provides visibility into the success of your association, as well as what you need to do to continue growing and improving. The key to success with KPIs is to make them clear, measure them regularly, and then allow for flexibility to adjust your strategy when necessary.
