Metrics provide the framework managers need to keep their businesses operating smoothly. It’s one thing to know whether or not a job is being done, but it takes a definitive measurement system to truly track progress and improve efficiency. If your only metric for tracking performance is to check whether or not something was completed on time, you are missing out on a massive opportunity to elevate your business, perform better and earn more money for less labor. These three key performance indicators (KPIs) and metrics are built to help businesses like yours collect meaningful data and develop meaningful solutions to their greatest challenges.
Telematics
Telematic data helps fleet managers achieve unprecedented tracking data on their company’s vehicles. Real-time updates offer insight into vehicle position, movement and equipment performance. Using telematics to review your fleet can also help you spot engine trouble and gather repair diagnostics info more quickly. You can find a guide online that can tell you what telematics is in greater detail, how it works and how you can use it to lower costs and improve your fleet management strategy.
Cost of Customer Acquisition
Did you know that gaining more customers actually costs your business more money? Acquiring new customers is actually a highly expensive process, but so many companies still believe that their only way to grow is to continually generate and convert new leads. In reality, some businesses thrive more when they target existing customers with exclusive offers or extended services; to determine where your business is losing the most as it scales, calculate the customer acquisition cost (CAC) along with the customer lifetime value (CLV).
To calculate your average customer lifetime value, you should multiply your typical sale by the average number of recurrent transitions and retention. This helps you determine how much money you make per customer, not just per sale. A business that expects to earn $1000 per client can reasonably spend $100 to acquire them, but if you are spending 30 to 50% of your projected profit on acquisition, you ultimately wind up on the worse end of the deal.
Lead Conversion Rate
Out of all the people your website manages to draw in, how many are now loyal customers? Social media and digital marketing are a numbers game, so much so that many businesses fail to realize that many of the figures are ultimately useless to their bottom line. Even though the trends have moved towards people using Facebook and Twitter to get their news and practice consumerism, having thousands of followers on Instagram, means nothing if you don’t generate a profit through that growth.
Social media and digital marketing should always have clear KPIs, and your leadtocustomer conversion ratio is one of the most important. To calculate this metric, you’ll need to be using a good CRM platform to keep track of how many leads your landing pages, emails and social media profiles generate. Then, you can compare your month’s number of new leads with the number of new customers. You may be shocked to discover that your hightraffic pages are not as effective as you thought; a 5000:100 ratio indicates there is a strong disconnect between your advertising, marketing copy and target audience.
