What are metrics used for?: And how do you determine Key Metrics?
What’s another word for Metric?
Metrics are the numbers and statistics that track and measure the success of various aspects of an organization or business.
However, Key metrics help define the foundation of your company’s analytics.
So all businesses need to determine their performance in some way or another.
And almost every business owner has struggled with finding and defining the right key metrics to determine their business.
And what’s another word for metric?
This article answers all these questions and more…
What are metrics used for?
Metrics are commonly used as a way to measure the success of a business or individual.
So by tracking and analyzing metrics:
Business owners and employees can make data-driven decisions that will help improve their operations.
And there are countless metrics that businesses can track, but the most important ones vary depending on the business’ goals.
However, there are a few metrics that are almost always important, regardless of the business.
And in this article, we will discuss the 11 most common uses for metrics.
11 Things That Metrics Are Used For:
1. Metrics measure website traffic:
And this includes which pages are most popular and what users do on each page.
So they determine the performance of a website or a web page.
And the metrics for measuring website traffic include, but are not limited to:
— the number of visits,
— average time on site,
— bounce rate
— and conversion rate.
2. Metrics Track your sales funnel:
And to see where customers drop off in their path to purchase and how you can improve it.
So metrics are critical for tracking and making informed decisions.
And knowing accurate metrics of your sales funnel and your sales funnel structure is vital to your business success.
And to see which products are most popular and which ones aren’t selling.
So well so that you can adjust your inventory accordingly.
3. Metrics measure customer satisfaction:
Customer satisfaction measurement is at the core of all company decisions and success.
And Metrics provide an avenue for evaluating customer satisfaction because:
— Quickly identify and resolve problems.
— And focus on areas where your customer is happy.
So you can identify areas of improvement for your business or employees and better serve your customers’ needs.
4. Metrics track employee performance:
And using metrics to evaluate performance can help teams focus on the right things.
And make the right decisions to reach their goals.
Measure your employees’ performance in real-time and use it to improve and incentivize growth.
And to see how well they perform their jobs and how much value they add to your company.
— To see how much work employees are getting done.
And what they’re spending their time doing (and where they could be more productive).
And to see if employees are learning what they need to know from their training programs.
So that you can improve them if necessary.
They also track job satisfaction and include which aspects of your business employees.
And how satisfied they are with their jobs overall.
5. Metrics track website conversions:
So website conversions are the driving force for revenue for any business large or small.
Web traffic is valuable, but conversions are even more crucial.
And by tracking how users interact with your website, you can better target your sales team.
And such as how many people complete a purchase on an e-commerce site.
Or sign up for a newsletter on a news site.
6. Tracks customer lifetime value:
Customer lifetime value (LTV) is a marketing metric that determines how much each customer is worth to your business over time.
So it’s important to know your LTV so you can focus on upselling and cross-selling to existing customers.
And this will help you bring in new revenue while also increasing retention.
So you likely want most of your customers to renew, but not everyone will.
And LTV helps you to see how much money each customer is worth over time (and whether or not they’re worth keeping).
7. Tracking social media metrics:
Through social media, businesses are connecting to customers in a completely new way.
And without a clear sense of where your business stands on social media.
You’re missing out on key opportunities to grow your brand and win new customers.
And on top of that, it is not just about getting more followers or more retweets:
Each social network brings its own set of metrics which you should be monitoring.
And such as:
— how many likes does your Facebook page have or followers on Twitter.
— and what they do once they’ve liked or followed you (such as visiting your website).
8. Tracks search engine optimization:
So if your website’s traffic is not increasing, it’s likely you are not doing keyword research and optimizing for search engines.
Search engine optimization (SEO) is essential for getting traffic to your site.
One way to do keyword research is by using a tool such as:
— or Google Trends.
These resources allow you to track what words or phrases people are searching for.
And can help you determine which ones to optimize your site for to get more traffic from search engines.
So these are keywords people use when searching for your business online.
And how high up in search results those keywords place you.
9. Measures customer acquisition costs:
So it is crucial to monitor customer acquisition costs.
Because they measure how much you need to spend on advertising to attract a single new customer.
And it helps you determine which marketing channels are most effective.
10. Calculates return on investment:
Tracking metrics will also help you determine whether your campaign is profitable.
And for example, if your company spent $200 on a marketing campaign that yielded $5,000 in sales.
Then you can determine that you got a 200% return on investment (ROI).
And this means that each dollar invested in your marketing effort yielded two dollars of revenue.
So in cases like these, it is safe to say that marketing efforts are valuable and worthy of additional funding.
11. Metrics measure success.
Some metrics are leading indicators, while others measure progress after achieving a goal.
And they allow businesses to identify their strengths and weaknesses.
And make adjustments where necessary, leading to greater overall profitability.
So if you want to grow–you need to be willing to take measurements and make changes.
How do you determine key metrics?
Start with your goals.
And what do you want to accomplish?
Decide what success looks like.
And then, determine how you will know when you have hit your mark.
So it is easy to think of metrics as numbers, but they are not always quantitative.
So without key metrics, it is impossible to improve your website or business.
And in this article, we’ll show you 10 ways how to determine key metrics for your website or business.
10 Ways How To Determine Key Metrics:
1. Track conversions from all marketing channels to determine key metrics:
Comparing different marketing channels and measuring their return on investment is a key part of your overall digital strategy.
So by tracking conversions from all channels, you’ll have a better understanding of what works and what doesn’t.
— And can then make data-driven decisions about future campaigns.
And the easiest way to do so is by installing Google Analytics (or another tool) on your website.
So look at each channel to determine which are most effective in driving traffic, leads, and sales.
2. Set goals for search engine optimization (SEO).
One of your key metrics should be Google ranking.
And the best way to set goals for SEO is to set a goal for organic search traffic.
And determine which keyword phrases will help you achieve it.
So these are keywords that people use when searching for information online.
And this can include specific product names, brand names, industry terms, and more.
3. Determine your customer acquisition cost.
When choosing your key metrics, figure out what it costs to acquire a customer.
And your customer acquisition cost is calculated by:
— dividing your total marketing spend (including advertising, email campaigns, affiliates, and so on) by the number of new customers acquired.
So if a company spends $5 on Facebook ads and gets one customer, that would be $5/1 = $5 CAC.
4. Measure the lifetime value of a customer.
Customer lifetime value (CLV) is an important metric to help you assess profitability.
Calculate CLV by using the amount of money brought in by each customer.
And the length of time the customer is associated with your business.
So use CLV to determine how much money you need to make from a customer to justify a marketing campaign.
5. Evaluate customer satisfaction levels.
Customer satisfaction surveys are an important tool in determining what is going well and where improvements can be made.
So by surveying customers regularly, you can keep tabs on how your company is performing with its key metrics.
These metrics may include service, product quality and price levels.
And from there, you’ll be able to identify weaknesses in performance so that adjustments can be made as necessary.
6. Monitor social media activity.
Depending on your business, you might want to measure certain social media metrics.
Monitoring Twitter and Facebook is easy.
Just sign up for a free account at both sites and add an app to each profile that will allow you to monitor them.
—I recommend TweetDeck or Seesmic.
So Keep track of how many people like your tweets, and who they are.
And what they say in return and include keyword searches as well.
7. Track lead generation efforts.
There are some key metrics you should track when it comes to lead generation.
And the main ones include:
1) Lead quantity,
2) Leads per unit of time,
3) Cost per lead
4) And Conversion rate.
With all these things in mind, how does your campaign stack up against others like it?
So reviewing these metrics regularly will help you determine what needs to be changed.
Or improved to make it more effective.
8. Assess employee productivity levels.
Track how productive your employees are.
And this will enable you to identify those who need extra attention or praise to maximize efficiency.
–An employee’s performance is typically measured by their productivity level.
So this can be tracked using metrics such as hours worked, amount of work completed and quality of work.
If an employee is lagging on his workload, it may be time for a talk about expectations and goals for future assignments.
And on the other hand, if an employee exceeds expectations regularly.
So he might deserve a raise or bonus based on his high-performance level.
9. Conduct market research surveys.
Surveys are a great way to get quick and inexpensive market research data.
Find out what metrics are most important to your customers.
And you can use that data to make better business decisions.
10. Evaluate competitor online activity levels…
The first step to determining key metrics is to identify your competitors’ top priority metrics.
And then you will be able to determine what you need to do on a daily, weekly and monthly basis.
To increase engagement with your website/product.
And make sure that you are keeping up with or surpassing your competitors in these key areas.
So it may seem overwhelming at first.
But if you have identified a few of your main competitors in similar industries as yourself then it should be pretty easy.
What’s another word for metric?
Some industries use slightly different names for metrics, such as:
— key performance indicators (KPIs) in business management
— and indicators in IT.
And if you want to know what another industry calls a metric.
Google it—or ask an expert from that field.
And they’ll be glad to help!
In short, metrics are used to gather and analyze information to determine your company’s strengths and weaknesses.
So it is also a way to tell if you are accomplishing your business goals.
And when determining what key metrics are best for your business, consider these questions:
What data do you need to succeed at your business goals?
Does everyone in your organization know your key metrics and how they relate to your goals?
Thank you for your time.
- What are Key Metrics?
- Why is Revenue Metric Important?
- Website Engagement Metrics
- What are Revenue Metrics?
- What Are Examples of Engaging Content?
- Content Engagement Strategy
- How Do I Come Up With My Website Contents?