Important Metrics In Measuring Business Performance

IMPORTANT METRICS IN MEASURING BUSINESS PERFORMANCE A. Metrics for Marketing The following are several important metrics that can be measured to measure a company's marketing performance: a. Marketing strategy implementation Measuring the number of workers who use a marketing strategy can help you measure the relationship between the strategy and the target number. For example, the marketing team in your company is expected to increase activity on social media on a daily scale. From here, you can measure the number of posts made and compare it with the number of engagement targets on social media and see the effectiveness of the strategy. b. Website traffic As the name suggests, this metric measures the number of people who visit your website. Not only that, you can also see how they access it and how long people "stay" on your website. Of course, this information is useful to help you make decisions regarding online marketing strategies. For example, you can compare the number of visitors who find out about your website through social media and through search engines. So, you can use this information to develop an SEO strategy. c. Conversion rate This metric is used to measure how likely potential customers are to take actions that are in accordance with the company's marketing strategy. So, this information can help you measure and analyze the success of the marketing techniques used. For example, you can measure how many marketing email recipients click on a link to your product or subscribe to your company's services. B. Metrics For Products Business performance metrics can also help you measure and understand the level of effectiveness and efficiency of a company's production. The following are several important metrics that can be measured to measure the performance of a company's business products: a. Cycle time This metric is used to measure how long it takes to complete a business process, start to finish. Information from these metrics is very valuable for knowing the right strategy to optimize productivity. You can also compare the time required for each business process. For example, your company produces hardware components for computers. From here, you can track the time needed, from getting raw materials to selling them to other computer companies. So, you can find out which production processes can be accelerated and made more effective b. Throughput Throughput is a metric that measures the amount of production within a certain time period. This metric is useful for measuring the speed your company needs to make a product. The formula commonly used is: Throughput = number of units produced/production time per unit c. Return of investment Quoting from Forbes, return on investment is an important metric and should not be abandoned. Because, this metric measures business performance based on the profit the company gets for each investment it makes. For example, company So, the ROI obtained by company X is 200%. The formula commonly used is: ROI = [( number of sales – amount of investment) / amount of investment x 100] C. Metrics for customer success If we want to measure a company's business performance in terms of customer success, here are several metrics that you can use.. a. Consumer satisfaction This metric can help you find out how satisfied consumers are with the products or services they buy from you. You can get this data by conducting surveys, polls, or product or company reviews. For example, if you create an Android application, you can find out the level of customer satisfaction from reviews on PlayStore. b. Customer retention Retaining consumers and increasing their loyalty can have an impact on your business, such as increasing sales and promoting your products to other people. According to Scoro, this metric shows the number of clients who continue to use your product within a certain period of time and make repeat purchases. From this metric you can also analyze and evaluate customer experience. So, you can adjust various strategies from marketing to products when facing competitors. c. Customer acquisition Customer acquisition metrics measure a company's business performance in terms of the high or low costs the company incurs to acquire consumers. Based on the information obtained from these metrics, you can help the sales and marketing department to make changes in its strategy if needed. D. Metrics For Financials Metrics are also usually used to measure the financial "health" of a business. The metrics commonly used to measure business performance in financial aspects include.. a. Cash flow Cash flow is used to measure the amount of money leaving and entering the company. By calculating expenses and income, you will be helped in making decisions about the production budget. For example, if the company's cash flow shows a lot of expenses, you can analyze each expense and take steps to save. b. Profit margin Companies can measure gross and net profit margins because these two metrics differ in the types of expenses. By understanding profit margins, you can make business decisions that can maximize profits, such as increasing revenue or minimizing costs. c. Debt- to- asset- ratio This metric compares the amount of a company's debt obligations with the amount of assets the company owns. The debt-to-asset ratio can help you measure the amount of debt a company has. So, it helps you in making business decisions if you want to take out a loan or when looking for new investors..