Understanding Your Company's Business Metrics |
Posted: November 27, 2017 |
In order to understand your company’s business metrics well and implement them accordingly, you need to first have an accurate definition of what these business metrics are. Business metrics are quantifiable measures that are used to track down and assess the status of various business processes that take place within your company. Therefore, business metrics should be involved in taking care of issues that concern the audience surrounding your business. Some of these include the customers who are very essential, the team players and employees at different levels, middle managers, executives, and investors. Every section of your company has a specific performance metric that must be monitored. The marketing department has to track the social media and marketing metrics employed such as program statistics and campaigns, the sales department has to monitor the specific sales performance metrics used including new leads and opportunities, and finally the executive has to look at the bigger picture of financial metrics. Key Performance Indicators (KPIs) in Business For you to succeed, you need to develop a business intelligence dashboard system that bears a data visualization tool, which displays the current performance of key performance indicators and business metrics for your enterprise at any time. •KPIs are meant to target areas of performance within the business operations •Business metrics track down all the business areas of your company Marketing Metrics These are specific measurable values that are applied by the marketing team to display the overall performance of all the marketing campaigns, lead nurturing, and social platforms especially the social media. Key performance indicators of digital marketing have to be closely monitored to help your business team stay on target on a daily basis. A vast base of different sorts of marketing channels are used by the department. Therefore, it is crucial for the marketing team to accurately track down their progress using the most effective metrics at hand. Business metrics and key performance indicators may vary depending on the channels your marketing department is monitoring. Some of the marketing metrics that may be used in your company include; •The web traffic sources •Incremental sales •The general social sentiment Social Media Social media is a very essential tool in marketing for any business. The metrics employed in this case are the specific values by the marketing team to keep track of performance of their campaigns on different forms of media. In this case, your company must constantly bring in websites visits and with time convert the web users on various platforms into useful leads. Sales Metrics All organizations must be in full control of their sales metric in order to thrive in a highly competitive business environment. Your sales team must be provided with the right business metrics and performance indicators to gain control of sales activities. The most crucial KPIs and metrics that must be closely monitored by the sales department include: •The overall growth of sales •The product performance •The average purchase value •The average profit margin The sales revenue is very important and speaks volume about your company. The monthly sale results are a perfect indication of whether your customers are interested in your products or services or not. The sales revenue generated is also a clear indication of whether the marketing efforts are strong enough and paying off, whether you are thriving well in the stiff competition, and many other factors. Evaluation of the overall sales revenue and setting of goals has to keep in mind that the sale results are affected by multiple other factors within the company. The team responsible for tracking the sales KPIs must also be sensitive of the fact that changes in previous market campaigns, competitive actions, and recent changes in the market are key factors of consideration. Financial Metrics The success of your company rides on generation of revenue and proper management of finances. Your financial data should not only scoured by customers. Other key players including investors and stakeholders have a role to play. Such parties not having control of your financials can turn valuable people off your company. The specific financial metrics that can be used to monitor and effectively prove the fiscal health of your company include; •The quick ratio or acid test •The working capital •The current ratio •The debt to debt equity ratio Attempting to analyze it all at once may not be practical and you may probable get lost in data. As a business person, you need to narrow your focus on specific metrics that will produce the most relevant insights for your enterprise.
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