Business metrics also know as key performance indicators are used to measure, track and assess quantified activities that determine the performance or failure of a business.

It is crucial to understand business metrics, goals, KPIs, and targets, prior to making a deeper analysis into the core business details.

Business metrics give a deeper insight into the organization which helps the company management in successful decision-making.

Moreover, most organizations seek to maximize the value of their business over the long term, this means that every investment should generate a profitable return in the long run.

Also, The best way to ensure a positive return on investment is to harness the power of business metrics in evaluating, monitoring and ensuring the organization’s resources are put into good use.

Here are some business metrics you must take note of when it comes to tracking your day-to-day business, these include:

1. Revenue metrics – Monthly Recurring Revenue, Annual Recurring Revenue, Revenue growth rate
2. Project management metrics – Productivity per team/person, Project Earned Value, Project Actual Cost, Project duration
3. Financial metrics – Cash Flow, Net Profit, Profit Margin, Gross Profit
4. Human Resources metrics – Employee Engagement Rate, Employee Satisfaction, Revenue per employee
5. Product metrics – Monthly Active Users, Daily active users, New users, User satisfaction score
6. Sales metrics – Sales Growth Rate, Sales Conversion Rate, Sales Revenue, Profit per sale
7. Marketing metrics -Keyword Ranking, Website Traffic, Backlinks, Website Traffic Source
8. Customer metrics – Customer Retention Rate, Average Customer Revenue, Customer Lifetime Value
9. Performance metrics – Return on investment, profitability, annual turnover, productivity rate
10. Technology & Innovation metrics – Operational efficiency rate, satisfactory rate, quality assurance, productivity rate

Business metrics may also be described as performance metrics that measure a company or a project’s various aspects of performance.

Organizations use business metrics to evaluate business processes, maximize operational performance, and aid in the formulation of planning and strategy.

In conclusion, Metrics helps to ask the right questions, assess success and provide input on strategies to improve.

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