Metrics, or Key Performance Indicators (KPIs), are the numbers in your business that tell whether you’re succeeding or not.
All businesses track at least one metric, such as total sales. But more sophisticated, and more successful, businesses track many key metrics as they understand the power of the old saying “You can’t improve what you can’t measure.”
Below are five keys to getting the most out of your metrics and using them to grow faster and dominate your competitors.
1. View Your Metrics Frequently
Only reviewing your metrics at the end of the month is wasteful. Because, for example, if you learn then that sales and profits are down, it’s too late to do anything about it.
Rather, had you identified the dip in sales earlier, you could have done something about it. For instance, you might have noticed that your sales team was issuing less proposals. You could have corrected that problem by encouraging them to give more proposals and seen increased sales for the month.
Most metrics should be viewed daily or weekly.
2. Assess the “Underlying” Metrics to the “Big” Metrics
In the example above, you saw that sales (a “big” metric) has an “underlying” metric (the number of sales proposals issued). In fact, every “big” metric has numerous “underlying” metrics.
For instance, in addition to the number of sales proposals, metrics such as the number of website visitors, new leads, and outbound phone calls might affect sales. As such, it is critical to monitor each of these “underlying” metrics. In doing so, if any of them decrease, you can fix them right away and ensure your “big” metrics (e.g., sales) are positive.
3. Choose Controllable Metrics for Each Team Member
Holding your customer service manager responsible for the amount of traffic to your website receives isn’t effective, since their role doesn’t influence that metric. Rather, a customer service manager may exert control over phone hold times, customer satisfaction, support ticket turnaround times, the amount of refunds issued, etc.
Work with each employee or department to make sure they not only have metrics they control, but that their metrics best align with the goals of the organization. For instance, when customer service decreases refunds, profit go up. When they better satisfy customers, lifetime customer value should rise.
4. Help Employees Create Strategies to Improve Metrics
Continuing with the customer service example, your customer service manager may not have the skills or know-how to reduce ticket times, refunds, and so on. As such, work with them to brainstorm strategies and plans to improve results. Likewise, investing in training could help.
5. Visibility
Perhaps the most important key to getting the most out of your metrics is visibility; that is, ensuring everyone in your organization can see their metrics.
Many top organizations set up televisions which display their key metrics. This gets everyone aligned towards the organization’s goals. It also skyrockets productivity due to social accountability.
For example, if everyone in the organization can see if refunds are up or down, the customer service manager will inevitably work harder to make sure they’re down since everyone can now see their performance.
Conclusion
Tracking your metrics is a surefire way to grow your business since “you can’t improve what you can’t measure.” Furthermore, by using these five strategies, you can leverage metrics to yield even more success.
