Keeping a track of every business parameter is not possible, hence you need to focus on your business’ pulse i.e. the key metrics. KPIs help you to measure business success.
How do you measure your business performance?— The best way NOT TO DO this is by following your GUT feeling. Operating a successful business requires a thorough analysis of the work, financial and sales results. It can’t be done without tracking significant your business’ key metrics.
Therefore, it’s essential to understand these key metrics which can tell you about the health of your company and help you monitor the performance on an ongoing basis. This will empower you to make sounder decisions, as well as plan proactively for the future.
So, what are these Business Metrics?
Business metrics or Key Performance Indicators demonstrate a measurable value that shows the development of a company’s business goals which are usually tracked on a KPI dashboard. They indicate whether a company has accomplished its goals in a planned time frame.
But the catch is, you have to only monitor relevant key metrics for business depending on your operations. Tracking irrelevant KPIs will divert you from focusing on the things that truly matter, so you must choose the right ones to perceive. Here we have jotted down a list of 9 key metrics that you should track without thinking:
1. Sales Revenue
Did you know that about 28% of businesses fail due to problems related to the financial structure of the company? This includes keeping poor accounting records. We gave this metric priority as it can tell a lot of things about your company. If you don’t understand your key financial metrics, you will not be able to monitor your business’s health.
When evaluating your sales revenue and setting goals, it is important to remember that sales results are affected by multiple other factors. Consequently, the person tracking the sales KPIs should also be aware of recent changes in the market, previous marketing campaigns, competitive actions, etc.
2. Gross Margin
Higher gross margin means that your company is earning more by each sales dollar and you can now invest it in other operations. This metric is exceptionally important for emerging companies as it reflects on improved production and processes.
3. Cost of Customer Acquisition
CAC is calculated by dividing all the costs spent on obtaining new customers (marketing expenses) by the number of new clients acquired in a specific time frame.
The Cost of Customer Acquisition should always be measured together with the Customer Lifetime Value.
4. Net Profit Margin
This metric signifies how good is your company in generating profit compared to its revenue. This number tells you how big a sum of each dollar earned translates into profits.
It is a great way to predict long-term business growth, and see whether your income exceeds the costs of running the business.
5. Sales Growth Year-to-date
Everyone loves to see their company grow month-over-month, but sometimes, sales are highly dependent on the mood of the customers and season.
Sales Growth Year-to-date indicates the pace at which your company’s sales revenue is increasing or decreasing. Monitoring your sales growth over various periods will give you a better understanding of where your company stands in the market.
6. Qualified leads per month
With your company’s growth, you’ll be able to invest more resources in sales and marketing and soon you’ll be going to have hundreds of new leads each month. But not all of these leads turn into customers. That’s why you need to measure the number of qualified leads per month.
You can categorize your new leads into three different groups:
7. Lead-to-Client Conversion Rate
Your potential leads have to be contacted by your sales team to turn them into paying clients. The Lead-to-Conversion business metric reflects on your sales team’s performance. Moreover, it might indicate the quality of your product such as if leads fail to convert, this means your client might not be impressed with what you’re offering.
8. Monthly website traffic
One of the best indicators of your company’s reputation is the monthly website traffic. The more people hear about your product, the more likely they are to check out your website.
9. Employee Happiness
It is a true notion that happy employees turn into productive employees. The research suggested that your employees will work 12% more effectively when they’re happy at work. Keeping their satisfaction level high will lead to a long-term commitment to your team and company. That’s why it’s important to regularly check whether your employees are happy and feel rewarded for their work.
How to choose the right KPIs?
Ensure that every single one of your business metrics meets the SMART criteria: Specific, Measurable, Attainable, Relevant and Time-Bound
You also need to understand that, KPIs are different for each industry according to their growth stage, and project phase. You must follow the industry standards and choose those KPIs only which match with your business’ goals and objectives. Do remember that the metrics you measure will change as your company grows and scales.
Leading a successful business is easier when you use key metrics that provide a graphical overview. You’ll get insight into historical trends, problem areas and current progress; and can use this information to maintain sustainable growth.
Consistency is what makes us the best web design agency in Australia. The key to this simple and detail-oriented process which is conceptualised for perfection
Clients needs and transparent communication are dealt with immense importance.
After getting deep knowledge of our client's requirements, we accordingly develop and design the best digital solutions.
Approval is everything. Client's satisfaction is what we need. We seek their approval on everything we do and verify the product once completed.
You ask, we deliver. Once on the same page, our client's don't need to worry about the quality of the final product.
The fashion in which we deliver our projects speaks for us! By employing different technologies and frameworks, we have succeeded in turning our clients dreams into reality. Here are some of our projects.
The reason behind the good words following us is being client-centric. We put all our sweat into fulfilling our clientele's requirements and that's why they shared their positive thoughts with us. Let us take a look at what our clients have to say.
Amazing work was done by this team. They worked tirelessly and did not stop until I was 100% satisfied. They went back and forth with me on any issue or question and did a remarkable job. I have used them twice now for two very different websites and both have turned out great. I will 100% continue working with them and cannot recommend them highly enough. Very easy to deal and prompt to respond. Great job, great team!
We had TX Digital redesign our website and we absolutely loved working with them. The designers were not only quick and efficient but provided us with a design we loved and catered to every small change we had. Kevin the owner called to introduce himself and make sure everything was going great, even though he wasn't directly working on the project, so great team and even better customer service. A huge thanks and would highly recommend to anyone needing the same service.
5 Stars for the following reasons: The excellent website they provided for my new business 'Declutter Organise Downsize', the special care, time & attention they gave me, as I was a novice to website development, their patience & after sales service (especially Alok), their polite & courteous manner, their great price point and attitude towards going the extra mile for the customer, which I appreciated very much. Special thanks also go to Kelvin, for making it all possible & holding things together, when needed. I wish the team all the very best
We were referred to TX Digital from colleagues of ours in Melbourne. Not only have we been amazed at the depth of understanding on many different business models (SEO, AdWords and Website Maintenance), we found ourselves working with a team of friendly professionals
TX Digital is definitely a pleasure to work with and they maintain the highest level of transparency and professionalism of any SEO company I've ever dealt with. They are instrumental in helping us to dominate Google Listing on the first page. They clearly stand out as one of the best and they deliver on their promises.
Excellent work from the TX Digital designing team. I got exactly what I'm looking for. I recommend TX Digital Web Designing services for any websites.
I had been using TX Digital services for a long time. The best part of the service is Time. They do what they commit. I recommend TX Digital for any IT web services.
We contacted TX Digital as we needed our website to be more responsive and a few changes made to it also. We were a little bit apprehensive at first using someone we did not know, but we found we were pleasantly surprised by our experience with TX Digital. TX Digital went above and beyond for us with the whole process, no job was too big or small, they did not stop until we were 100% happy with everything. They even made suggestions to us that we did not see ourselves. Their communication was great and they were just lovely people to deal with. We will definitely be using them again for future work.
We believe our clients to be our extended family and do our best to assist them. We work for value association and proudly represent ourselves as helping partners of our clients.