What does success in your business mean to you? Can you track it? If you were to track it, what performance metrics would you say are most important?

These are some of the questions you need to start asking yourself if you want to achieve scalable growth.

What is a Business Performance Metric?

Business performance metrics, also known as KPIs (key performance indicators), are quantifiable measures used to evaluate the success of a business.

Download Now: Free KPI Scorecard Template

The truth is, your business is more complex than a single performance metric can reveal. And every business is different—some performance metrics that work for you may not apply to another company, and vice versa.

By setting SMART business goals and associating specific performance metrics with each goal that you consistently monitor, you can start to paint the bigger picture of your success.

Which Business Performance Metrics Should You Track?

When tracking business performance metrics, less is more. Even if you track many metrics, be sure to focus in on the top 5-7 that make the most sense for your business goals and monitor them each week.

Do you want to escalate your brand awareness? Are you getting a ton of leads but need to better qualify (or disqualify) them for the sales team?

Business performance metrics and goals associated with them

Don't waste time analyzing too many numbers that don't affect the target goals you land on—whatever they may be.

When it comes down to it, there are literally hundreds of performance metrics you can choose from to track the growth of your business. So, choose wisely.

To be effective, your business performance metrics must be:

  • Clear and visible throughout your organization
  • Quantifiable and monitored frequently
  • Necessary to achieve your business goal

Examples of Business Performance Metrics by Business Category

Sales

  • Revenue vs. budget
  • New customers
  • Time to acquire
  • Renewal rate
  • Market share
  • Upsold customers
  • Net promoter score
  • Customer lifetime value

Marketing

  • Cost per lead
  • Qualified leads
  • Qualified prospects
  • Click-through rate
  • Competitive rank
  • Conversion rate
  • Marketing ROI
  • New followers
  • Web traffic

Operations

  • Time to install
  • Time to resolve
  • Overtime hours
  • Employee retention
  • Employee productivity
  • Customer support tickets
  • Plant/equipment productivity

Development

  • Bug resolution
  • Team productivity
  • Status against deadline
  • Status against budget
  • Recruiting efficiency

Finance

  • Net profit
  • Debt-asset ratio
  • Gross profit margin
  • Day sales outstanding
  • Costs of goods sold

How to Track and Apply Business Performance Metrics

After you’ve identified your key business performance metrics, the tracking begins. We suggest using a scorecard to record and review your metrics on a weekly and quarterly basis.

Download Now: Free KPI Scorecard Template

Some of the benefits of using a scorecard to track your business performance metrics include:

  • More accurate data for decision making
  • Speed and efficiency for business processes
  • Transparency and visibility for all team members

Business performance metrics tracking benefits

Now that your metrics have a new place to live, it’s time to pack their bags and move them in!
Here are the next steps you should take:

  • Identify who is going to track each of your business performance metrics, and who is responsible for meeting the goal attached to it.
  • Determine how each metric will be measured and if you will need to set up analytics software.
  • Stay accountable for these metrics and their continued tracking, monitoring and analysis over the course of time. Don’t skip a single week!

After a few weeks, you should be able to start drawing some trends from your data. Remember: if you aren’t making data-driven decisions, you might as well not be tracking these performance metrics.

Don’t go with your gut, go with the numbers.

Don’t go with your gut, go with the numbers. It may take some getting used to, but trust us—if you’re doing it right, you’ll see some positive changes happening in all departments.

At Designzillas, we use business performance metrics to generate continuous growth for our clients and especially our own brand. Want to learn more about growing your business?

Try Our Growth-Partnership Solution

blog author

Author

Tina Fleming

Designzillas' cool cat Inbound Marketer and resident plant lady, Tina crafts blogs, emails, social media posts, website copy and more for internal and client projects. 

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