A business metric is a raw measurement of a business process. It's important to remember that metrics are a means to an end, not an end unto themselves. Measuring a metric is not always enough – you need to use that metric to guide business decisions and to ensure your business is on the right track.
Every department in your business should be monitoring key metrics – whether that's your sales and marketing team or your financial and inventory operations. Smart organizations strengthen business metrics by combining raw values with additional insight such as comparative values, anecdotal information, and objectives.
Check out the examples below to see what types of metrics key departments in your business should monitor.
Sales metrics are used to determine your ability to move product and generate revenue. Make sure to monitor key metrics like sales growth, product performance, and quote-to-close ratio.
Learn more: Sales Metrics & KPIs
Marketing teams are driven by having the latest business metrics on hand. Beside the all-important ROI (return on investment) metric, marketers commonly measure website and campaign performance, cost per lead, and incremental sales.
Learn more: Marketing Metrics & KPIs
Departmental metrics like inventory/supply-chain metrics are key to understanding your performance on a tactical level. To be successful, you need to ensure every part of your business is running smoothly. Monitor key inventory metrics like turnover, perfect order rates, and order status.
Learn more: Inventory Metrics & KPIs
Call centers provide the perfect example of using business metrics to improve operational performance. Monitor key metrics like service level, customer satisfaction, agent performance, and cost per contact to get a tactical view of your business performance.
Learn more: Call Center Metrics & KPIs
The most common business metrics to monitor relate to your financial performance. Key metrics like gross profit margin, quick ratio, and debt-to-equity are critical measures of your business performance.
Learn more: Financial Ratios and Metrics
