7 Metrics You Should Be Tracking In Your Business
Business metrics. You know you should be measuring them, but despite that, you are probably ignoring some of the most important analytics your business has to offer. How is your business doing? What are your most important metrics that need tracking? Here is a list you should be measuring in any business.
To learn more about how to track these metrics, keep reading!
Why track metrics?
The thing about being in business is that it’s hard work. There are lots to do, and in turn, that means lots to track. Given the sheer number of things to track, it’s easy to overlook some metrics that are critically important to your business.
Often, these are the metrics that are most important because they take into account things not reflected in other metrics.
For example, if you’re focusing on building up your Twitter following, how does that compare with Facebook? Are you focusing on building up an email list? What is the open rate for those emails?
Tracking these statistics can give you insight into what platforms are doing well and which ones aren’t. It can also show you whether or not there’s a trend happening. If email signups start fading off, it may be worth adjusting your focus to see if it picks back up again at some point.
Employing Professional Analytics Specialists
Just as it’s important to track metrics properly, it’s absolutely critical to get professionals on board who can analyze the data and give you the proper insights. The last thing you want to do is track metrics yourself, only to find out that there are some major issues with your data.
Simply having access to this information can make all the difference in the world, as it will show you any potential causes of your issues. Especially if you’re having trouble with a specific metric, tracking what’s going on with that is crucial.
Employing a professional in analytics is a great way to ensure that your numbers are correct and that you’re tracking the right ones. When looking for an analytics professional, be sure to check that they have a masters in business analytics or a similar qualification, as this will give them the professional grounding you need in your business.
Monitoring Your KPIs
If you’re running a business, you probably have some KPI’s set up. If not, now is the time to really think about what is important to you. Creating KPI’s can help your business by ensuring that you stay on track.
For example, if you want to increase your social media followers by 20% in the next 4 months, creating an objective that can be measued with a metric is a great way to motivate yourself.
Here are seven other statistics to follow in your business.
Qualified leads are the most important metric for your business, as they give you insight into whether or not your business is growing.
Track the number of qualified leads. This will show you how many people are entering your sales funnel, and helping you to identify any problems with your sales process. If a lot of people are dropping out somewhere along the line, it may be time to revamp that process.
Website Bounce Rate
Checking your website bounce rate regularly can be a very good idea. The bounce rate is the percentage of people who leave your website right away and don’t come back. It also shows you how many people visit and leave your website, doing so because they can’t find what they were looking for, or something about the site put them off.
This is important as it shows how many potential customers spend less time on your website, which means more chances to convert them into customers. It’s also useful as it will give you an idea as to where you need to focus as well as to measure the effectiveness of your optimization efforts.
You’ll need to know your net profit for this. If you use a cash basis accounting method, then your net profit is your revenue minus the costs of goods sold and operating expenses. You can also estimate it by deducting the cost of goods sold from your revenues.
Monitoring the net profit of your business is important because it will show you how much money you’re making, which makes it easier to keep an eye on how profitable your business is becoming.
Return On Investment
Return on investment means different things to different business owners. It’s the money you make from your investment of time and money.
If your business is really profitable, it may mean more opportunities for expansion and growing your business. If it’s not profitable, then there may be some problems with what you’re doing and how you can fix them.
By tracking this metric over time, you’ll be able to see if there is a trend happening in that direction or not.
How much are you getting from referrals? Answering this question will show how much you’re getting from word of mouth.
It’s important to track this because it’s one of the most cost-effective ways to get new customers. It saves money, and in turn, helps your business save money, which can be put into marketing methods that you’re trying out to see which ones work best for you.
Average Customer Lifetime Value (ACLV)
The average customer lifetime value is the amount of money a user is expected to spend during their relationship with your organization. It can be calculated in different ways, but it usually includes looking at the length of time they remain active, the average amount spent when they are active, and sometimes includes an estimate for repeat purchases.
In order to track this metric, you’ll need to take into account the lifetime value of your customers. This will give you an idea of how much people are spending each month and taking into account a part of how much they spend every month. If you only know the amount they spent at a single point in time, it can be difficult to predict their purchasing habits going forward.
Average Unique Visitors
This is a metric that will help you measure the growth of your website as well as that of your social media platforms. It’s also one that shows you where you’re spending most of your marketing budget, as well as another important gauge for your company’s growth.