Biz Tips: How Are Your Teams Performing? 8 Metrics Executive Managers Should Be Tracking

Biz Tips: How Are Your Teams Performing? 8 Metrics Executive Managers Should Be Tracking

Biz Tip:

How Are Your Teams Performing? 8 Metrics Executive Managers Should Be Tracking

How are your teams performing?

The dictum, “You can’t manage what you don’t measure,” is attributed to the late management consultant Peter Drucker. But what did Drucker mean by this statement? Essentially, he was saying that it is extremely difficult to measure success unless you have defined it and established metrics or key performance indicators (KPIs). You can’t determine how well your company is performing by following your gut feeling. So, in today’s world, what sort of metrics should executive managers be tracking in order to boost team performance and improve operations?

Key performance indicators defined

Before we dive deeper, let’s define business metrics also known as KPIs. Metrics are a set of measurable elements that can be used to weigh a company’s success against its predetermined objectives and goals. KPIs are pertinent as they assist in determining the business’s structured, fiscal, and operational accomplishments especially in relation to competitors within the same industry. It’s clear to see that metrics are quite critical. Here are eight (8) important KPIs to help gauge team performance and enhance operations.

Metric #1 Sales Yield

The number of sales made are a great indicator of how well new business is doing. Failing to measure and keep records of this area is paramount to business suicide. Tracking sales revenue allows you to see what products or services your best-sellers are, which marketing campaigns are bearing fruit, and how well you’re doing in the sector.

The data collected from tracking sales yield can assist marketing teams and sales forces chart strategic quarterly goals. These measurements can also be used to explain disparate trends and sales patterns. You’ll also be able to explain how your sales fare in diverse market conditions, with new marketing campaigns, or other factors.

Metric #2 Net Earnings

The sales revenue metric alone cannot tell you if you’re making enough to cover all your operating expenses. There is a need for an additional metric. The net profit margin or net earnings metric allows you to see whether you’re running a profitable business or need to ramp up sales in order to break-even.

Your company’s business growth is tied to this metric. What are some innovative ways to improve this metric without putting more pressure on your sales teams? You can gradually increase the price of your services and or products in addition to making more sales. Another way would be to lower costs during production by outsourcing to cheaper manufacturers.

Metric #3 Lead Conversion Rate

Digital marketing has changed the way businesses engage with customers. Getting leads isn’t the biggest challenge for many businesses – it’s converting those leads to sales that is often the problem. According to Invespcro.com, as many as 80% of acquired leads do not translate to sales. If you’re rolling campaign after campaign without measuring how many qualified leads you’re actually getting, all you’re doing really is funneling money down a rabbit hole. You must measure this important KPI so you can adjust your marketing strategies accordingly.

Metric #4 Customer Acquisition Cost

Acquiring new customers can be costly. In fact, it can be five times more expensive to get new customers than to simply nurture existing ones. Yes, keeping track of how much it costs to acquire a new customer will encourage discussion on how to maintain and nurture existing relationships. For the average company, 65% of their business is generated by sales coming from established clients so this is a market you want to keep.

Metric #5 Customer Retention Rate

Following on the heels of measuring customer acquisition is the need to track customer loyalty. How many of your customers have you managed to keep year on year? Why do people leave your brand? Data to do with this retention rate can assist your sales and marketing teams to carry out surveys and polls to find out answers that can be used to grow sales and improve service delivery.

Metric #6 Net Promoter Score

Have you ever asked your customers if they’d be willing to recommend your products and or services to friends and family? Word-of-mouth recommendations are still the best form of marketing to date. According to Nielsen, as many as 92% of buyers believe the recommendations made from friends and family over traditional marketing. Despite knowing these figures only 33% of companies actively ask for referrals. By carrying out surveys, your marketing department can obtain a more accurate net promoter score.

Metric #7 Website Traffic

Companies are now very much aware of the need for digital marketing KPIs. One such digital metric is the need to measure monthly traffic to your social media platforms and website. You may be spending colossal amounts of money on your content needs but getting very little traffic and subsequently fewer leads than expected. You’ll never know how to improve this issue of traffic if you’re not aware of the volumes you’re getting each month.

Metric #8 Team Satisfaction

Studies carried out at Oxford University’s Saïd Business School show that when employees are happy, fulfilled, and satisfied with their occupations, productivity levels go up by as much as 13%. Happy employees mean lower turnovers. This is a metric that will certainly let you know how your teams are performing and if the performance is dismal you might like to check on team satisfaction. This is particularly important when employees are working remotely.

Start Tracking Your Metrics Today

Are you looking for software that will help you keep track of each of these metrics? Self-service data analytics tools are designed for streamlined data management and visualization efforts allowing you to easily track, summarize and report your data metrics.

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