What Should You Measure?

[00:00:00] Welcome to another episode of Financial sns, your Bite-sized Information for Entrepreneurs, and this week we're gonna be talking about what should I measure in my company? So I love to review reports because they tell a story and different numbers tell different things about the company's health and future. And depending on what industry you're in and what your goals are, are really gonna depend on what numbers you look at. These key performance indicators or KPIs, as we call them. You should. The ones you should be looking at are specific to your goals and objectives. KPIs are metrics that help you measure progress towards your goals, and they can vary widely depending on the industry and your company and the type of business that you're in. So here are the KPIs that are commonly used across many different industries. Revenue. That one's easy. Everybody knows how many sales you're getting, [00:01:00] so. What you wanna do is track this over a given period of time and then you can can compare these periods of times to see if it increases or decreases. The second one, customer acquisition costs. This kpi p I, measures the cost of acquiring a new customer. It includes you wanna in the things that you wanna include in this are marketing and advertising expenses. The third. Customer lifetime value. This is a great number to have because it allows you to measure the revenue that a customer is expected to have over the course of their relationship with you. Number four is churn rate. This K P I measures the rate at which customers stop using your product or service. So it measures how often clients leave. Number five is Net Promoter Score. This one I highly recommend. We [00:02:00] use it in everything that we do, and it's easy to collect data on this. What it does is it measures client satisfaction and loyalty by asking customers how likely they are to recommend the business to others. Kind of an easy thing. You've probably done one before. It's on a scale of one to 10 and prime numbers are eight, nine, and 10. Number six, website traffic. This measures the number of visitors to your website if you are trying to drive your customers to your website. This is a great measure to see if the marketing you're doing is effective conversion rate. This measures the percentage of website visitors who take a desired action, such as making a purchase or filling out a contact form. And number eight is employee satisfaction. This one we do on our own company, and it's really important to make sure that your employees are happy and that they like what they're doing. [00:03:00] So you could ask them several questions about how are they feeling about their workload? Are they satisfied with how much work they have? Do they like their position? Those types of things to get an idea of how your employees are feeling. And these are just a few examples. There are many other KPIs that could be relevant to your business, depending on your specific goals and objectives. And don't forget that these KPIs, they can change over time. You can dec, you decide, you might decide that you wanna change what you're measuring. Because the organization is moving in a different direction, and it's important to identify the KPIs that are most important to your business and track them regularly. And it shows you if you're making progress towards your goals and when you're making progress towards your goals, that empowers you and inspires you to keep going. If you liked this information and you want more, head over to [00:04:00] our website. We have lots going on there. You can click on the Let's Chat button and we can talk more about this and any other topics.