Benchmarking

What Decides the Success of Your Business?

How do you measure your businesses’ success? To run a successful business, you must thoroughly analyze the work, sales, and financial results. This cannot be done without tracking relevant business metrics. Business metrics indicate whether an organization has achieved its goals in a planned time frame. In this article at Entrepreneur, Dra. Sara Isabel García López Legorreta shares top metrics that companies must consider to track their success, irrespective of size.

Metrics that Reflect Your Company’s Performance

Sales Revenue

Sales data demonstrate whether your customers are interested in buying your product/service. It also shows if your marketing efforts are paying off and if you are still competitive. Calculate sales revenue by summing up all the income from client purchases. Subtract the cost associated with the returned products or services. Boosting your sales revenue must be a long-term strategy rather than temporary growth.

Revenue Growth

This is the key metric that every tech business uses to measure financial performance. While calculating your revenue growth, remember that your business’s situation is entirely different than your competitors. Compete against yourself. Set revenue growth goals that are attainable, and do not pressure your employees to cut corners to achieve their individual goals.

Employee Satisfaction

Your employees are a critical part of your company. Providing them with the right tools, positive and supportive work environment will let them succeed. Furthermore, it will motivate them to work harder to help you achieve organizational goals. Employee satisfaction translates into increased customer satisfaction.

Customer Churn Rate

This metric indicates the number of customers that cancel your service or products over a time period. Reducing customer churn rate is crucial for a business’s survival because acquiring a new customer can cost five times more than retaining an existing customer. Keeping a close eye on this metric will help you take action before it is too late.

To read the original article, click on https://www.entrepreneur.com/article/365571.

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