In an increasingly analytical world, you’ve got to know which metrics to pay attention to.
As the leader of a young business, you’ve got to have the right metrics in mind if you’re going to keep growing. The performance of your company isn’t due to one thing or another, it comes down to a multitude of factors.
Today, we’re going to look at the 4 most important business metrics going into 2020. Follow these, and you’ll be able to improve the areas that need improving and measure your growth as accurately as possible.
1. Revenue Growth
This one is a simple mainstay, but that doesn’t make it any less important. Measuring your revenue growth will give you a good idea of how you’re doing financially. It takes the number of sales you generate and subtracts the cost of undeliverable or returned items.
You always want to have higher revenue, but there’s no sense in setting unrealistic goals, especially if you’re a young company. Any growth is positive; don’t measure yourself against competitors, just against yourself.
2. Fixed and Variable Costs
Fixed costs are the things you pay regularly that don’t change based on your sales numbers. Rent, utility bills, hosting, and equipment are all fixed costs. Variable costs, on the other hand, is the cost of the labor and materials required to make one of your products.
They’re important metrics because you need them to gauge how much things like rent and bills affect your profit margin. The average fixed cost helps you figure out how much you need to spend on variable costs in order to profit.
3. Web Traffic & Conversion Rates
Your traffic numbers will indicate how well your digital marketing is doing, while your conversion rates will tell you how well your website is turning visitors into customers.
Using tools like SEO and PPC advertisements (among others), you can get more unique visitors to your landing pages. From there, you’ve got to be able to “make the sale”, as it were, which will improve the ROI for your marketing efforts.
You can measure both of these metrics with a tool like Graphly. We give you real-time updates for your web traffic, record lead sources, and measure funnel conversion, all with easy to look at charts and graphs. We always say, “where performance is measured, performance improves”.
4. Customer Acquisition Cost
Customer acquisition cost measures the ROI of your marketing efforts by dividing the amount of money spent on marketing in a period by the number of customers gained. You can also break it down into different areas of focus, like content marketing, PPC, and offline marketing to determine which areas are healthy and which aren’t.
Using this metric, you can allocate resources into the marketing areas that need more work. You always want the cost of acquiring customers to go down.
Keep Business Metrics Close To the Heart
With tools like Graphly, your business metrics are never too far away. We make it easy to visualize and understand where you’re doing well and what areas you need to improve. Metrics are incredibly important to understanding the health of your business, so sign up today and let us help you get to the bottom of it all.