As a company begins to implement tech and AI solutions, leaders will have to be able to show the results and hopefully positive ROI. Tech leaders must be able to demonstrate the business impact of digital transformation to all parties and stakeholders.
The following important AI transformation KPIs can help decision-makers to track digital ROI.
User Lifetime Value
Simply, this KPI measures user retention. Obviously, keeping customers is a good way to generate more revenue.
Also, key to keep in mind is the cost of acquiring these users but keeping them and assessing a lifetime value is a good metric to track as the transformation is happening.
Neil Patel gives a great overview of User Lifetime Value from a marketing perspective.
Hours saved, for some business owners depending on life stage of the organization, may be hard to quantify.
As more of a business is automated or becomes part of a process, it’s an important tracker of progress, especially for digital transformation.
It will depend on your individual business, and how your scorecard tracks hours and personnel. But find a way to measure it, track it and always work to improve it.
Some good tips on calculating this important metric can be found here.
This is a fun one to monitor as the AI transformation continues.
Add up the number of processes that now run on new software, or are the result of successful AI projects, and how this has affected productivity – basically the output relative to the time and resource investment made.
This will give you some overview on the level of continued use in the business, moving forward.
This KPI can be used to learn where to keep simplifying processes, where to use less automation or more, and provide better training to staff.
The most important KPI to track when going through a digital/AI journey is customer experience.
How well are your customers interacting with the company? Do they understandthe new processes? What is expected of them and are they aware?
Tracking user experience as closely and as often as possible is paramount and should give you a good look at whether you are implementing the plan successfully (or not).
Like we’ve said in the past, with any new transition there will be time and money investment.
It’s going to take all of the tools in your belt to build a great AI transformation, and having these key trackers will definitely play a role. Don’t fly blind.
Stay patient and enjoy the AI Journey..