What are Business Metrics?
Business Metrics Definition
A Business Metric is a quantifiable measure that is used to track and assess the status of a specific business process. It's important to note that business metrics should be employed to address key audiences surrounding a business, such as investors, customers, and different types of employees, such as executives and middle managers. Every area of business has specific performance metrics that should be monitored – marketers track marketing and social media metrics, such as campaign and program statistics, sales teams monitor sales performance metrics such as new opportunities and leads, and executives look at big picture financial metrics.
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Business Metric or Key Performance Indicator? What's the Difference?
To be effective, business metrics should be compared to established benchmarks or business objectives. This provides valuable context for the values used in the metric and allows business users to better act on the information they are viewing. For instance, $20M sales in Q4 sounds like an impressive figure; however, if you're Boeing Aircraft, this figure would have you contemplating filing for bankruptcy.
Context allows business metrics to make an impact. In fact, this is where the line between key performance indicators and performance metrics becomes blurry. The difference between the two ultimately comes down this:
- Business metrics are used to track all areas of business
- KPIs target critical areas of performance
Examples of Business Metrics
Depending on your company and the areas you’re aiming to monitor, you may want to focus on certain business metrics in particular. Here, you can see a number of performance metrics examples for industry verticals and departments that are available to you:
Marketing Metrics are measurable values used by marketing teams to display the overall performance of social platform accounts, campaigns, lead nurturing, etc. Monitoring digital marketing KPIs can help your team stay on target from month-to-month. With the vast base of different marketing channels used by team, it is crucial for marketing teams to actively track their progress using the right and most-effective metrics. Depending on the channels your team is monitoring, metrics and KPIs will vary. Below are a few examples of key marketing metrics:
In order to thrive in a highly competitive business environment, organizations must be in control of their sales. The best way to gain control over your sales is to provide you sales team with the right performance indicators and metrics. Here you can find the sales KPIs and metrics that are crucial to monitor:
Company success rides on generating revenue and properly managing your finances. It’s not only customers that will be scouring your financial data, but also potential investors and stockholders; Not having control of your financials can turn key people off your organization. Use these metrics to monitor and prove the fiscal health of your business:
SaaS (software as a service) companies need to pay close attention to metrics that display their ability to retain customers, generate recurring revenue, and to attract customers. These examples are some of the top metrics for SaaS companies:
Social Media Metrics are values used by marketing teams to track the performance of social media campaigns. Social media marketing is a fundamental part of any business, bringing in website visits and eventually converting web users into lead. Since marketing teams often use multiple social media platforms to increase impressions, it can be difficult to monitor performance on all of them. These social media metrics combine the most important data and allow your team to track their progress:
Every business has data that is critical to monitor in real-time, or over time. These metric examples are applicable (and important) to a multitude of departments and fields:
Monitor Your Performance With The Right Business Metrics Dashboard
Business performance metrics are crucial in keeping teams, executives, investors, and customers informed and aware of how a company is performing. The easiest and most effective way to stay on top of your company’s performance is by having your key metrics on a comprehensive business dashboard. Different departments need to keep an eye on different metrics, so what the right business dashboard is will vary from department to department, and from company to company.