5 Important Metrics Your Growing Business Needs To Keep An Eye On

Regardless of whether you are just starting out your communications business, or run an operation that is national these metrics are the 5 metrics that you must keep an eye on.

1. Sales revenue.

Without sales – you have no business. At a very basic level it is the income that comes from the exchange of the purchase of products or services, minus the cost associated with things like returned or undeliverable merchandise.

2. Customer loyalty and retention.

Once you have won the business the name of the game is keeping them! Customer loyalty is all about attracting customers, getting them to buy, buy often, buy in higher quantities and bring you even more customers. You build customer loyalty by treating people how they want to be treated. How do you go about measuring customer loyalty and retention? You could try – 1) customer surveys, 2) direct feedback at point of purchase, and 3) purchase analysis.

Applied metrics must be used to ensure business growth…

3. Cost of customer acquisition.

This metric is a measure of the total cost associated with acquiring a new customer, including all aspects of marketing and sales. Customer acquisition cost is calculated by dividing total acquisition expenses by total new customers over a given period. By using this metric you will also be able to determine whether your sales and marketing efforts

4. Operating productivity.

Staff productivity is an extremely important measurement in any business but has much higher important in a service based business such as advertising and public relations. If you do not know how your staff are doing, then how can you truly know the inner workings of your own company? Staff happiness or lack of can put your company in serious jeopardy, while on the other hand, high staff productivity can be your best company asset.

5. Size of gross margin.

Margins are another important metric, and the gross margin is calculated by looking at a company’s total sales revenue minus its cost of goods sold, divided by the total sales revenue, expressed as a percentage. The higher the percentage, the more the company retains on each dollar of sales to service its other costs and enjoy as profits.