Every business, regardless of its size or the industry it operates in, must have a system in place to measure its progress and understand where it stands in terms of performance, efficiency, revenue, and profit. Key metrics in business allow you to do that in a simple and reliable manner.
What Is a Business Metric
A business metric is a quantifiable measure used to track and assess the performance of a specific aspect of a business. They help evaluate the success or failure of a particular business strategy or initiative. The simple metrics are revenue and profit margins, while the more complex ones include customer acquisition cost, customer lifetime value and return on investment (ROI).
Types of Business Metrics
Different types of business metrics can be used to assess various aspects of a business’s operations. They are:
