A business metric is a quantifiable measure that companies use to track, monitor, and evaluate the success or failure of various business processes. The primary purpose of using business metrics is to communicate an organization's progress toward certain long-term and short-term objectives. A business metric is a quantifiable measure used to track and evaluate the status or performance of a specific business function.
Metrics are
used to measure progress toward short- and long-term goals and objectives.There are companies, especially in the technology sector, that have fewer than 10 employees but generate millions in revenue. SaaS (software as a service) companies pay close attention to metrics that control customer retention, recurring revenue, and user participation in their product. Companies rely on revenue to stay in business, and managing and tracking that revenue is a fundamental function of their finance team.
