If you’re looking to expand your operations to Africa as part of your Corporate Social Responsibility (CSR) goals, you’ll definitely benefit from the continent's growing tech ecosystem and skilled workforce. But before you put your plan into action, it's crucial to establish and track the right Key Performance Indicators (KPIs) so you can accurately track your success. 

We’ll start with a high-level look at the KPIs you should be measuring for customer experience overall, then zero in on the KPIs you should have in place that are more specific to impact sourcing in African communities.

Start with your hero KPIs

You’re probably already familiar with the “hero” KPIs – those top-level metrics used to judge the overall success of your customer experience. That includes metrics like:

• Customer Satisfaction (CSAT)
• Net Promoter Score (NPS)
• Likelihood to Recommend
• First Contact Resolution
• Conversion (more relevant for sales organizations)

However, the reality is that the decision on the hero metrics will likely be out of your control unless you’re in the decision-making seat for your company. Which leads us to measuring drivers vs. outcomes – an approach that will be key in determining your impact sourcing KPIs.  If you think only about business metrics in an impact sourcing business, you may be missing out on some key ways to additionally define success that may be feel-good but meaningful for your company and its reputation.

Getting specific: Drivers vs. outcomes

At Impactify, we’re firm believers in the power of drivers vs. outcomes. In other words, having

more control over the factors leading to an outcome (drivers) rather than the final assessment by the customer (outcomes). For instance, with CSAT as a goal, agents can't directly control the score – that’s in the hands of the customer. Instead, identify and measure factors you have identified through the data that will lead to high CSAT, like maybe your customers appreciate very quick response time or a very low handle time and efficiency of the interaction. 

And this is where you really want to focus your attention when you’re creating impact sourcing KPIs. You want to create metrics around these drivers that will guide the team towards improving overall customer satisfaction.

When you’re transitioning your operations to Africa through impact sourcing, there are five key performance areas you should be focusing on:

1. Job creation and economic impact

   Impact sourcing's primary goal is to create meaningful employment opportunities. KPIs in this area should measure not just the number of jobs created, but also their quality and sustainability. According to a 2022 report by the Impact Sourcing Alliance, impact sourcing has the potential to create millions of jobs in Africa, significantly reducing unemployment rates.

   Here are some of the KPIs you may want to consider tracking to measure job creation and economic impact:

   - Number of jobs created through impact sourcing initiatives
   - Percentage increase in income for employees hired through impact sourcing
   - Number of additional jobs indirectly created (e.g. cafes, grocery stores or other merchants that - recognize a site with 500 people could be a potential source of revenue.)

2. Diversity and inclusion

   Africa's diverse population offers an opportunity to build truly inclusive workforces. As a result, your KPIs should reflect your commitment to diversity across all levels of the organization. A study by Sigma Connected in 2022 highlighted that impact sourcing in South Africa has significantly increased the representation of women and marginalized groups in the workforce.

   Some KPIs you should be considering for diversity and inclusion:

   - Percentage of women in leadership positions
   - Gender balance across all levels of the organization
   - Percentage of employees from marginalized or disadvantaged communities

3. Skills development and career progression
   
   Impact sourcing isn’t just about providing jobs, it’s also about helping to establish career paths. KPIs in this area should track how employees are developing and advancing within the organization. The Global Value of Impact Sourcing report by Impact Enterprises in 2022 emphasized the importance of continuous skills development to ensure long-term career growth for impact sourcing employees.
   
   These are the recommended KPIs for skills development and career progression:
   
   - Number of training hours provided to new hires to add or improve professional skills
   - Percentage of impact sourcing employees who advance to higher positions
   - Number of employees transitioning from entry-level to skilled positions
   - Percentage of employees who accumulate more than one year of experience
   
   
4. Community impact
   
   The effects of impact sourcing should ripple across the broader community. Your KPIs here should measure the wider societal benefits of your initiatives. Future SA's 2022 report on youth unemployment in South Africa highlighted the significant community benefits of impact sourcing, including improved local education rates and reduced poverty.
   
   KPIs for community impact should include:
   
   - Reduction in local unemployment rates
   - Increase in average household income in targeted communities
   - Improvement in local education rates (e.g., number of children able to attend school)

Maximizing the effectiveness of your KPIs

Finally, here are a few tips to make sure you’re maximizing the effectiveness of your KPIs:

• Use the SMART criteria. Ensure your KPIs are Specific, Measurable, Achievable, Relevant, and Time-bound.
• Balance quantitative and qualitative metrics. While numbers are important, don't overlook qualitative insights that can provide a fuller picture of your impact.
• Involve local stakeholders. Local buy-in is key! Engage with local communities, governments, and NGOs to ensure your KPIs align with local needs and expectations.
• Regularly review and adjust. The African business landscape is dynamic. Regularly reassess your KPIs to ensure they remain relevant and aligned with your evolving business goals.
• Invest in data collection and analysis. Reliable data is crucial for meaningful KPIs. Invest in systems and processes that enable accurate data collection and analysis.

Ultimately, the key to successful impact sourcing in Africa lies in aligning your business goals with meaningful social impact. As long as you stay committed to continuous improvement, engage local stakeholders, and remain adaptable, your business can make a lasting positive impact on the lives of thousands of African workers and their communities.

Need help determining the KPIs for your impact sourcing program? Impactify can help.