10 Key Metrics to Track When Measuring Business Success
Success…it’s such an objective term, isn’t it?
You get to define what it means.
You get to decide when you’ve achieved it.
And that’s what makes it so darn elusive! U-G-H!!
As I am a former Algebra 1 teacher, I am naturally drawn to all things “number oriented” and that includes success. And while the obvious number to focus on when determining if you’ve attained this slippery little sucker is your business revenue, it’s not the only one.
Here are a few others you may want to take a peek at to offer a bigger picture look at what is actually happening inside your business and help you determine if you are successful (or at least headed in the right direction).
10 Key Metrics to Track When Measuring Business Success
(click on each metric to learn more and be sure to read the last one!)
- Calculate the percentage of profit you generate from each sale by deducting costs and expenses. Monitoring profit margins helps assess profitability and cost efficiency.
- Determine the cost incurred to acquire each new customer. This metric helps evaluate the effectiveness and efficiency of your marketing and sales efforts.
- Measure the total value a customer brings to your business over their entire relationship with your company by ranking of 1-10. While this is still somewhat objective, the CLV provides insights into customer loyalty and helps guide marketing and retention strategies.
- Monitor the percentage of website visitors or leads that convert into paying customers. Conversion rate is a critical metric for evaluating the effectiveness of your marketing and sales funnels.
- Calculate the return on investment for specific campaigns or initiatives by comparing the gains or benefits against the costs incurred. ROI helps assess the profitability and success of various business activities.
- Survey customers to measure their satisfaction levels with your products, services, or overall experience by offering a 1-10 scale for each. Again, this somewhat objective, but the CSAT is an indicator of customer loyalty and can guide improvements in customer service.
- Track the percentage of customers who discontinue their relationship with your business within a given period. Churn rate is crucial for evaluating customer retention efforts and identifying areas for improvement.
- Monitor the number of visitors to your website over time. This metric provides insights into the effectiveness of your online presence and marketing strategies.
- Measure the level of engagement on your social media platforms, including likes, comments, shares, and followers. Social media engagement indicates the reach and impact of your online presence.
Ironically, this is the one we AVOID looking at because being overworked and underpaid is the accepted “standard” for small business owners.
But THIS is the one that will actually bring you happiness along with success!
If all the numbers above are ideal and yet you are working 80+ hours a week and living on Ramen Noodles to keep it going, I have some bad news, my friend…
You have not achieved success that is sustainable.
And this is where Online Business Management Services come in! Click here to book a discovery call and let’s chat about how I can help.
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