4 Types of Analytics Your Business Should Track
The only way to truly grow your business is to know what works and which areas need improvement. That is why many businesses invest in a state-of-the-art data analysis suite that provides accurate business predictions. Knowing how your business is doing in multiple areas lets you make better decisions and optimize your profits.
But one of the mistakes many companies make is to only track a specific kind of metric—often financial ones. It’s equally important to track other metrics that let you know how the business is doing.
Unified communications analytics for enterprises can put this information at your fingertips. Here are four kinds of business metrics your business should keep an eye on.
1. Financial Metrics
Most businesses track their finances, but there’s a lot more to a good financial status than sales figures. The most successful businesses go deeper, breaking down their sales statistics and seeing where they’re getting the most bang for their buck. This will help them determine which investments are worth pursuing and make it easier to make key personnel decisions.
Besides sales revenue, some of the metrics to look at include cost per acquisition of customers in various areas, retention rate and lifetime value of customers, how much revenue each employee brings in, and your business’ cash on hand and cash flow.
Many businesses make the mistake of running too low on cash-on-hand, which can cause problems in the event of an unexpected expense. Going deeper into your financial metrics can help avoid an unexpected financial crunch.
2. Sales Metrics
Financial metrics alone can’t give you the full picture of your business with customers. Sure, you know who’s buying your product, but you don’t know who’s spreading the good word and who’s picking another vendor next time.
Sales metrics can further break down your customer’s spending habits and help you understand their behavior to tailor promotions and advertisements to get the best results.
Ideally, your sales metrics suite should not only show you your total revenue and your place in the market, but it should break down your sales year-to-year and show you where you’re strongest and weakest in revenue.
Knowing your strongest regions makes investing in marketing and shipping infrastructure easier. Additionally, comparing your revenue from new and existing customers helps a business develop a long-term strategy.
3. Marketing Metrics
Are your marketing efforts actually paying off? Many companies invest in ad campaigns that talk to the wrong people. This is especially common in the age of social media, where major platforms like Facebook, Twitter, and Instagram often cater to completely different audiences. To grow your Instagram and Facebook accounts effectively you can use advertisement maker.
If your ad campaigns are casting a wide net, you may find that you’re spending a lot of money on expensive ad buys without reaching your target demographic.
The best way to avoid this is to keep an eye on your marketing metrics to know the results each campaign is delivering. Some of the most important data points to watch are your bounce rate – the people who leave after viewing only one page, along with your conversion rate of clicks to transactions.
Make sure to check your return of investment on each ad campaign, so it’s best to make sure your statistical suite can break your marketing division down.
4. Human Resource Metrics
Keeping track of your human resource metrics may be tricky for larger companies but make it easier to get the most out of staff. The first step may be monitoring performance by division, and if one department seems to be doing better than others, it’s worth investigating.
From there, you can delve into each individual employee and find out if someone’s in the wrong position or is struggling with the workload. But the benefits of keeping up on human resource metrics start much earlier.
It’s easier to get the most out of your staff when you know which employees have a track record of success. While recruiting, you may identify patterns that indicate the best talent pool to source talent. Make sure to track how long the average time of employment is, along with their absence rate and their performance.
By combining these metrics along with in-person performance reviews, it’ll be easier to find the most efficient way to train and manage your staff.
Stay Strategic
Monitoring business metrics gives you strategic insights into the progress of your business. It’s much easier to change course when you know where to start. A top-tier business strategy software can organize these data points and help you guide your business to lasting success.
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