What They Are & 20 You Should Track

What Are Business Metrics?

Business metrics are quantifiable measures used to track the performance of a particular area of your business. They’re a way to evaluate progress toward goals and benchmark your efforts.

Individual teams or departments monitor metrics to ensure their part of the business remains healthy.

For example, marketing teams might track campaign effectiveness. Sales teams will focus on leads and revenue. And finance teams check profit margins and financial stability.

Each business metric you choose matters to the health and success of your company.

Why Track Business Metrics?

Businesses need to generate value. Your efforts should make a positive impact on your company’s reputation, customer base, and bottom line.

Tracking business metrics ensures that’s the case. It helps you:

• Assess company performance
• Identify problems
• Compare performance against industry benchmarks
• Ensure the company works towards shared objectives
• Set future business goals
• Provide stakeholders with important insights

But context is everything. The metrics you track should be relevant and measurable.

For example, tracking monthly revenue is an essential metric for a software-as-a-service (SaaS) company. However, if you don’t have paying subscribers, it might not be necessary to log that data.

Metrics vs. KPIs: What’s the Difference?

Metrics and key performance indicators (KPIs) are often used interchangeably. But they aren’t the same.

Metrics track performance. KPIs track...