As a DME owner, all your decisions should be data-driven. Learning how to understand and assess your KPI can propel your business forward with momentum, even during challenging times. At Medbill, every decision we make is backed by data, and our team is here to help you do the same. This article will provide you with tips to help make sure you’re effectively using KPIs to your advantage, along with the number one common KPI mistake to avoid.
If you want to learn more about selecting or reviewing KPIs, read our latest article on the 9 Steps Every DME Provider Should Use to Assess Their KPIs.
KPI Best Practice Tips
Here are three best practice tips to keep in mind when selecting or reviewing your KPIs as a DME company.
#1 Track 3-5 Major Goals
A common mistake is trying to measure too many KPIs at one time. Instead, it’s best to focus on only 3-5 primary goals when setting KPIs or organizational objectives. Then you can add 3-5 smaller goals for each main objective, and every time a smaller goal is achieved, you can celebrate that success.
Example: If you would like to achieve “X” amount of revenue growth over the next year, you’ll need to determine 3-5 smaller goals that will help you achieve your main goal. For instance, one smaller goal might be to expand your current product line to add additional items.
#2 Share KPIs with Everyone in the Company
Making your KPIs known to all employees, from the CEO to supervisors to the delivery drivers, is vital to their success. Everyone can help move those KPIs forward and play a part in achieving them. Share with employees how they can impact those metrics every month.
#3 Increase Employee Involvement
When you share KPIs with employees, it helps to give them something to achieve every month. It’s also valuable at motivating employees who are goal-oriented individuals.
#1 Most Common KPI Mistake
The most common mistake business owners make with KPIs is changing them every month! When this happens, you’ll have inconsistent data, and you’re no longer comparing “apples to apples.” In addition, this mistake prevents you from reviewing long-term data trends over a period.
The most powerful part of KPI data is your ability to review it over a 3-month trend, 6-month trend, and 1-year trend.
Imagine if you’re able to compare where you were in January 2021 to January 2022, it will make it easier for you to predict where you might be in January 2023!
Are You Wondering If Your KPIs are Even Accurate?
At Medbill, one thing we repeatedly hear from DME owners and billing managers is just how difficult it is to know if your data is accurate.
“We understand it’s hard to develop KPIs and measure them on a regular basis. Especially if every month you feel like you’re recreating the wheel by trying to pull specific reports and the numbers are coming from different places. You might feel you don’t have a consistent, real, and honest look at what is happening inside your business. That’s why we offer the Medbill Benchmark & ROI Review.” – Jamie Shaver, Director of Marketing & Business Development.
Your Next Step Towards KPI Success
Are you asking the question, “Is my data accurate?” If you want a review that tells you this is where we think you – then you can compare it to the internal reports you’re receiving – the Medbill Benchmark & ROI Review is available at no charge.
Contact our Regional Account Manager Nancy Reinicker by email at Nancy.Reinicker@medbill.com, phone at 412.304.1556, or use our online form to learn how we can help you achieve your KPIs for 2022!