If you're on Twitter and you're measuring the number of monthly active users (this is a real example), but you realize that you were wrong with four million because when you opened the Safari application, Twitter data was unexpectedly extracted and therefore counted as an activity, then this metric could fail you. Net revenue retention, according to the SaaS Capital team, is the most comprehensive customer loss metric because, in fact, it tells the entire revenue story of the installed customer base. When evaluating your sales revenue and setting goals, it's important to remember that sales results are affected by many other factors. The person who tracks sales KPIs should also be aware of recent changes in the market, previous marketing campaigns, competitive actions, and so on.
Sales revenue is calculated by adding all revenue from customer purchases, minus the cost associated with returned or undeliverable products. The most obvious way to increase your sales revenue is to increase the number of sales. This can be done by expanding your marketing efforts, hiring new sellers, or making discount offers that are hard to resist. Increasing your sales revenue should be a long-term strategy, rather than a quick (and temporary) increase in sales.
The net profit margin is a good way to predict long-term business growth and see if your revenues exceed the costs of running the business. The higher your gross margin, the more your company will earn per dollar of sales. You can invest it in other operations. This metric is especially important for emerging companies, as it is reflected in the improvement of processes and production.
It's like the equivalent of your company's productivity, translated into numbers. Who wouldn't want to see their business grow month after month? But sometimes, the sales depend largely on the season and on the mood of the customers. Sales growth so far this year indicates the rate at which your company's sales revenue is rising or falling. Every company has goals and milestones.
Maybe you want to double your sales revenue for the next quarter, or maybe you're planning to launch a new product. All of these big goals are actually projects that can be divided into milestones to mark your progress. An example of a metric would be the inbound organic traffic of the website. It's important to track this metric because it helps feed the outcome of the strategy, but it's not a clearly defined KPI related to an outcome.
Once again, while this metric can be essential to see what type of interaction with the product you're getting, it can also become a kind of simple metric. They provide several formats for accessing and analyzing data, from pre-defined large-format reports to panels, guided analysis and ad hoc analysis, allowing the creation of reports on demand and the discovery of data on what are the key metrics. Here is a list, broken down by stage of your business, of the most important metrics for modern business leaders. The problem with this approach is that, without a more formal methodology, a company can lose sight of the factors and results of key metrics.
Metrics also track your organization's standard business processes and provide data about them, but they're not the most important metrics your organization needs to measure, monitor, and comply with to advance its strategic plan. When creating your own, KPIs are made up of four key attributes and your result should be 5 to 7 clear KPIs for your plan. Metrics and KPIs are often confused, but the clear difference is that KPIs are the key measures that will have the greatest impact on moving your organization forward. Attend any modern business conference and you'll hear MRR (monthly recurring revenue) mentioned, perhaps more than any other key sales metric.
While there are many more important business metrics that companies can and should measure, these 12 will provide you with a quick overview of the current state of your business. Since all of these different key metrics rely on data as their engine, it's important to have a framework that allows you to collect, measure, manage and analyze data. . .