Clark: Why setting KPIs is crucial for strengthening customer relationships

“How do you measure success?” It’s a simple question—but one every business must answer with precision. Without a clear understanding of what success looks like, it’s impossible to prove value, build trust, or make data-driven decisions.

At a recent NationaLease meeting, Chris Fisher, VP of operations for Miller Dedicated Services, tackled this topic head-on. His focus? How to use KPIs (key performance indicators) not just as internal scorecards but as tools to create stronger, more strategic customer relationships.

One of the most common mistakes businesses make is confusing metrics with KPIs. While both are important, they serve very different purposes. As Fisher explained, “KPIs represent specific, strategic objectives that guide business progress. Metrics supply detailed data that support analysis but don’t directly indicate success.”

That distinction is especially important when working with customers. Metrics can help you understand day-to-day activity, but KPIs help you and your customer stay aligned on the bigger picture—what “success” means in the context of your partnership.

Start with understanding, not numbers

You can’t build meaningful KPIs until you understand how your customer operates. That means spending time on the ground, learning their business processes, and analyzing their operational data. Fisher recommends starting with a 90-day period focused solely on metrics. Use this time to observe, ask questions, and collect baseline performance data. Only after this phase should you move into developing KPIs.

This is a collaborative process. Both the carrier and the customer should agree not only on the KPIs themselves but also on the definitions and data sources behind them. The goal is mutual clarity and alignment so that both sides are measuring performance the same way.

Fisher also cautions against trying to measure too much. Focus on five to six KPIs that directly tie to your customer’s goals. Adding more can create confusion and result in data that is inconsistent or even contradictory.

See also: Clark: Five ways fleets can minimize the cost of congestion

Examples of high-impact customer-facing KPIs

These KPIs may vary from customer to customer, but common performance indicators for fleets and carriers include:

• On-time service: Are deliveries consistently made within the agreed-upon time windows?
• Cost per load: Is the cost of each delivery in line with agreed-upon benchmarks?
• Loads per truck per week: Are assets being utilized efficiently?
• Miles per truck per week: Are routes and schedules optimized?
• Orders delivered per week per driver: Are drivers performing at a sustainable and productive level?

The key is to select KPIs that are easily measurable, relevant to the customer’s business goals, and actionable so that if performance slips, it’s clear where to focus improvement efforts.

The five steps to setting KPIs

According to Fisher, developing effective KPIs requires a structured approach:

1. Determine key objectives: Understand what your customer is really trying to achieve. Is it lower cost? Faster delivery? Improved reliability?
2. Define intended results: Clearly articulate what success looks like. Each KPI should point to a specific, meaningful outcome.
3. Use lagging and leading indicators: Combine indicators that measure outcomes (lagging) with those that predict them (leading). This helps balance past performance with future planning.
4. Set targets and thresholds: Establish what “good” performance looks like and define acceptable variances. This helps avoid ambiguity and sets expectations.
5. Assess progress and readjust: KPIs aren’t set in stone. Review them regularly to reflect changes in operations, market conditions, or customer needs.

A long-term partnership, not a one-time scorecard

Most importantly, KPI development is not a “set it and forget it” exercise. It’s a living, evolving process that requires regular communication and adjustment. Performance measurement is only valuable if it reflects real conditions and continues to drive improvement.

The bottom line? When both you and your customer agree on how success is defined and measured, you build a relationship rooted in transparency, accountability, and continuous improvement.