5 Metrics Every Business Owner Should have at Their Fingertips

It’s possible to spend all of your time pouring over your web site analytical data. However, if you’re not looking at the right metrics – data that shows critical information about your current marketing plan performance – you’ll be hard-pressed to find data that can actually inform your marketing decisions. Here’s why metrics are so important and which metrics you should be tracking.

Why Metrics Matter

As a business owner, you’re busy. Whether it’s managing personnel, signing off on a new marketing plan, or reviewing last quarter’s sales, there’s always something clamoring for your time.

Metrics are essentially a way for decision making to be easier. At a glance, you can see how much traffic your website is getting, whether your pages are performing as intended, and see ways you can improve your sales. This helps to inform which marketing strategy you should focus on or let you know how you can improve current efforts.

Which Metrics Should I Track?

There are countless different metrics you could track, but not all of them will provide the information your business needs to thrive. If you’re in a hurry and don’t have time to spend hours poring over reports, make sure to keep track of the following metrics.

  1. Traffic. The amount of visitors that come to your site informs your interpretation of each of the other metrics on this list. Keeping track of your new and returning visitors, as well as how long people are spending on your site, will inform your decision on how to focus your marketing efforts.

  2. Conversions. The actual definition of a conversion will depend on what your business goals are for your website. Is your goal to build your email list? Then a conversion will be whenever someone signs up for your list. Is your conversion dependent on sales? Then a conversion is any time you make a sale.

  3. Sales/Revenue. Traffic is good, but if it’s not making you any money, it’s not performing like it should. Your sales/revenue metric let’s you know if this is the case.

  4. Average Customer Value. This metric determines the average value of your customers. This shows you how much money your customers make your company, on average. It can also show you the top performing customers (the ones that are the most valuable to your company).

  5. Best Performing Pages. By knowing which pages on your site are performing best, you’ll know where to funnel your customers and upon which marketing efforts to focus future plans.

If you work in the marketing department of a large corporation, you probably have an entire team dedicated to tracking these metrics and delivering reports.

But what if you have a small business and don’t have the resources of a team designated to keep track of metrics? Don’t worry – there are options you can afford, too.

Metrics Dashboards Options

There are many different services available which offer metrics dashboards, easy-to-read collections of your most important metrics. Take Domo’s Business Information dashboards, for instance. As they describe it, “Domo is a cloud-based executive management platform that gives users direct, real-time access to all the business information they care about, all in one place.” At a glance, you can see some of the most important metrics for your business,and you can have them delivered right to your smartphone or tablet.

No matter which solution you choose to monitor your data, make sure you’re keeping track of the 5 metrics listed above. Even spending just a few minutes per day knowing how those metrics are performing could dramatically increase your business success in 2014.

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CEO and co-founder of Trafficado, an internet marketing agency. Interests include entrepreneurship, small business, internet marketing, and economics.

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