In business, it is very imperative to maintain the balance and keep checking periodically the metrics to make sure that your business is running effectively. But before we dig deep, let’s find out what are these business metrics and why are they so much important to a business?
Business metrics can be explained simply as the collection of useful business data and statistics that can help you make an informed decision to grow your business. Many also call it KPI (Key Performance Indicators) or analytics.
Deriving and drawing the data to come to a meaningful conclusion with an added action plan is not an easy task. However, these are a certain fun challenge that you come across while running a business. Following are the list of metrics to be taken care of in 2019 for progressive business growth.
1. Cash Flow (Revenue & Expenses)
Cash flow to a business is like water to the fish. It is any business’s lifeline, which makes it an important aspect or part of performance metrics. Keeping accurate follow up of cash flow will help a business to assess their sales figure and measure the margins. Meeting sales requirement is quite a necessary KPIs for any business to track.
A lot of business are highly focussed on generating revenue but miss their mark in the profit in the balance sheet. This is majorly accounted for due to the negligence in properly tracking the expense and other factors in the equation. To avoid such situation, you’ll need and the best time and online expense tracker software to keep your business sales figures intact by timely presenting you with accurate data and key metrics of your business.
2. Cost To Acquire Customer
Due to competition in every business segment, you need to more and more customers opting for your product or services which in turn will meet your sales forecast. Customer acquisition comes with a cost. You’ll need to spend behind advertising & marketing and as such these services don’t come cheap nowadays. Moreover, you’ll also need to be alert about investing in bad marketing channel which could ruin your business image and affect profit margins.
3. CSAT Score
Well, it goes beyond saying that this metric stand atop everything else. CSAT score is nothing but the ‘Customer Satisfaction’ score which is important for any business to measure. Business is not all about providing service or selling product, what lies beneath is the way you build customer loyalty by treating the people in an utmost professional and kind manner. Customer satisfaction is all about ensuring customers are happy with their purchase and continue to do future business with you.
4. Performance & Productivity
Measuring employees performance and productivity are another essential key metrics that could make or break a business growth. Your staff’s performance and productivity are internally linked to the overall growth of an organization. Hence, it is important for any business to know how the workforce is performing in their tasks to find out the inner workings of your business.
Productivity ratios can be applied and calculated for any area of the business. It could be applied to sales, manufacturing, marketing, and even support departments. A business can self evaluate itself based on such various productivity stats to check their own performance against the industry standards.
These key metrics can help any business in many forms and reasons but the basic focus is to measure the growth of your business. Rather than focussing upon undesirable key metrics, it is best to evaluate your business on the above-mentioned statistics. A promising online invoice generator can go a long way in helping a business to formulate strategy and boost business growth.
Also, check as a business owner, is your process flow leaning more towards an approach of reporting or on analysis and results? Have you tried or tested anyone of these by implementing in your day to day business activity? Share your tips, thoughts and success stories in the comment section below.