Evaluate your team's strengths. Understand where your potential customers hang out (and where they're going for answers) Classify the key business metrics you could follow and make a decision.
Key business metrics
are the numbers you track to make sure your company is doing the best it can. They help companies achieve their objectives and determine where improvement is needed.Listen to the world's most downloaded B2B sales podcast Revenue is the amount of sales you generate by selling your product minus the cost of returned or undeliverable items. It's the key metric that all companies use to measure their financial performance. Obviously, the ideal is to earn as much revenue as possible, but the metric that is most indicative of your company's financial performance is year-over-year revenue growth. You should also remember that your company's situation is completely different from that of your competitors, even though you're competing for the same customers.
Therefore, it is better to compete against yourself and compare your current income and revenue growth with your previous financial performance than to compare it to that of your competitors. Otherwise, you could set a revenue or revenue growth goal that is not attainable in your particular context, which would cause you to fail to meet your objectives, pressure your employees to reduce expenses to reach their numbers and, ultimately, exhaust everyone. However, to truly understand how they individually affect your results, it's best to calculate each of your product's contribution margin ratios. To do this, subtract the total variable costs of each product from your total sales revenue and divide that number by your total sales revenue.
Your contribution margin ratio will be expressed as a percentage. Once you know the contribution margin ratios of each product and, in turn, its profit potential, you will understand which products will generate the most total profits if you produce more units of them and which products will generate the least total benefits if you produce more units of them. This knowledge will help you develop a combination of products capable of generating the highest level of benefits for your company. Discuss with your web team all the most important key metrics and place them on the left side of the matrix.
Once you understand the KPIs and key metrics, it's time to actually define them for your website (s). Tracking business metrics reveals whether the company is performing higher or lower in key industry benchmarks. The average time it takes to resolve support tickets, a key metric for customer service departments, records the time it usually takes to resolve them. The MRR, a key metric for SaaS companies, is basically a summary of all the revenue you expect to receive in a month.
When you're finished, you can start configuring your key metrics and creating your KPIs in Siteimprove Analytics. Meanwhile, the chief operating officer of a manufacturing company might want to track the perfect order rate, a key performance indicator (KPI) to measure the performance of warehouse operations. Adopting key marketing metrics helps your marketing team determine how effective your methods and channels are in supporting your company's success. It's also an important starting point for calculating other key metrics, such as net profit margin and earnings per share.
