When it comes to starting or even running a business venture, there is a lot more to what you need to do than actually meets the eye. For one, you need to always be on top of every issue relating to your business. Know exactly where the business stands at all time. Whether you are racking in profits or leaking losses.
Most business owners get professional help from business management consulting experts since they don’t have the relevant information.The key performance indicators of your business should display some element of measurable value which shows the progress of your company’s business goals. Here is a short list of some of the business metrics that you would be interested to know about your business:
- Gross Margin
- Sales Revenue
- Net Profit Margin
- Net Promoter Score
- Monthly Recurring Revenue
Here are 12 business performance metrics that you can use in your company.
1. Sales revenue
The sales business performance metrics can tell you a lot about the performance of your company. Taking month-over-month sales results will show you whether your target market is really buying your products or services or not.
2. Net profit margin
You will be able to know the efficiency of your company when it comes to generating profit and its comparison to your overall business revenue. You will basically be able to know just how big of a profit you are making from each dollar that you make.
3. Gross margin
This business performance metrics will tell you just how much your business is earning by each sales dollar. The higher your business gross profit margin is, the more your business is actually earning. You can use the calculations from this metrics to check whether you can use the amount your business has made to start another business venture.
4. Sales growth year-to-date
It is every businessperson’s ambition to see his/her business be on a steady growth streak month-over-month. But there are instances, and most of them, where sales are more dependent on the season of the year or the moods of the consumers of your products. This metrics will indicate the pace of your total business’s sales revenue.
5. Cost of customer acquisition
You can basically use this metric to determine what you need to do in your business to acquire a consumer to purchase your products or services. you only need to divide the total costs that you spend on acquiring new customers by the total number of customers that you actually acquire.
6. Consumer loyalty and retention
You will also be looking forward to increasing the number of loyal consumers of your business products and/or services, this helps in the overall growth of your business. Plus, your loyal consumers will also spread the word about your products or services. This will only end up adding to your consumer numbers. You can also use this metric to determine the number of consumers that your business is able to retain.
7. Net promoter score
This metrics will reflect the quality of your business product or services to the level of customer satisfaction with these products or services. you can also use it to determine the number of consumers who are more likely to recommend your products or services to others.
8. Qualified leads per month
This metrics enables you to determine whether you can safely invest more of your resources in sales and marketing or not. And whether these marketing options can get your business new leads which can be potential customers.
9. Lead-to-client conversion rate
You will use this metric to determine the rate at which you can turn a lead into a potential client of your products.
10. Monthly website traffic
This metrics can show you a lot about your business’s reputation. More people are more likely going to check your product the more they keep hearing about it.
11. Met and overdue milestones
This metrics can help you determine the milestones you may face when looking to start a new venture in your business. Maybe double your sales revenue or increasing your sales.
12. Employee happiness
Happy employees equal productive employees which equal efficient work done in your business. And that is what this business metric does.