Stop the Guesswork: How Tracking Your Business Metrics Fuels Growth

As a business owner or entrepreneur, tracking your business’s metrics is absolutely key to your success - I really can’t stress this enough. Sure, your intuition, experimentation and sprinkling of guesswork got you this far, but if you’re shooting for the moon you need to get up close and personal with the data. And yes, I get that it’s not the sexiest part of running a business, but it will give you insights that drive better decisions, and help you plan for long-term success.

Why Metrics Matter

Metrics are measurable data points that give you a clear picture of your business’s performance. Whether it’s sales figures, website traffic, or ROAS (Return on Ad Spend), these numbers are going to help you understand what’s working, what needs tweaking or where you need a complete overhaul. And sorry to break it to you, this isn’t a once-and-done exercise. You need to stay on top of your numbers so that you’re able to spot trends, identify opportunities and catch any mistakes before they lead to financial set-backs.

KPIs vs. Metrics: What’s the Difference?

KPIs (Key Performance Indicators) and metrics often get thrown around interchangeably, which can be confusing, so let’s clarify. In very simple terms, metrics are all the data points you track for your business. KPIs, however, are the metrics that you have identified as the most important data points that impact your business objectives. For example, your website’s traffic is a metric, while the conversion rate of that traffic into a paying customer is a KPI.

Metrics can be tracked across various business functions - sales, marketing, customer service - but not all metrics will be directly tied to your goals. KPIs, on the other hand, are the select few metrics that indicate whether you’re moving towards your key objectives.

Setting Your KPIs

KPIs need to be both actionable and measurable. A good rule of thumb is to use the SMART framework: Specific, Measurable, Achievable, Relevant, and Time-bound.

Here’s a quick guide to setting effective KPIs:

1. Define your goals: What do you want to achieve? More sales? Better customer retention?

2. Choose relevant KPIs: Select KPIs that directly align with these goals. If increasing revenue is a goal, a KPI might be the number of new clients acquired per month.

3. Set measurable targets: Know what success looks like. What’s the exact number that will tell you that you’ve hit your goal?

Also, don’t get sidetracked by vanity metrics. They might make you feel good, but are they driving growth for your business?

Once you’ve defined your metrics and KPIs, the next step is setting up a system to track them. A well organized, easy-to-use spreadsheet is all you’ll need. Then I suggest setting up a recurring task in your calendar or in your project management tool to update the document and review the numbers. Or if you have a team, have them track the metrics specific to their role, and schedule meetings to review and analyze the data together.

If you need to get on top of this, like yesterday, then I have a free resource that’s going to make it super easy for you. Click here to download a metrics tracking template.

Or if you need more hands-on help in taking control of your business’ destiny, then we need to talk! Imagine having a dedicated professional to set up your KPIs, create custom tracking systems, and provide regular insights to fuel your growth. As an accredited OBM, I’m here to take tasks like this off your hands so you can focus on the big picture stuff. Don't let data overwhelm hold you back from reaching your business goals. Book a free 30-minute coffee chat with me today, and let's discuss how we can turn your metrics into a powerful tool for scaling your business.

Do it today - your bottom line will thank you!