Business Intelligence Metrics and Numbers that Matter
Following the article explaining ‘The Importance of Business Intelligence for Investment Firms’, this article highlights the metrics that matter for each department within any organisation. It is essential for the metrics, also known as key performance indicators (KPIs) in some cases, to be aligned with the business strategy. In doing so, the appropriate reference data should be collected. Reference data should be well-organized and follow the appropriate format to illustrate to stakeholders ‘cause and effect’; how their actions meet a corporate objective while enabling them to decide on the right actions and activities to be taken.
Marketing metrics are values used to measure and display the overall performance of the marketing performance. They can then be used to optimise areas such as social media platform impact, campaigns performance and lead to client conversion. Some of the key marketing metrics are:
– traffic sources breakdown,
– sales campaigns by cost per lead,
– SEO keywords ranking,
– SEO traffic by keyword,
– social media platform engagement,
– Conversion rate by campaign.
Sales metrics measure the performance of the sales team, the team usually responsible for taking the output of marketing efforts such as leads and converting them into clients. They provide useful information to target realistic growth in areas where improvement is possible. Some metrics that are essential to monitor are:
– Client conversion month-over-month,
– Qualitative analysis of non-converting clients by reason,
– ROI by the campaign,
– Cost per acquisition (CPA) by region.
Retention metrics are vital for nurturing value from clients. A satisfied customer can raise company brand awareness and is highly likely to bring in more customers, in addition to generating recurring revenue. Some useful metrics to consider are:
– customer lifetime value,
– customer retention rate,
– customer satisfaction rate,
– customer churn rate,
– recurring revenue.
Financial metrics are important for the health and growth of the company. Monitoring financial data is crucial and some metrics to examine are:
– revenues over expenses,
– cost per acquisition,
– actual vs budget expenses,
– operational costs.
Every business should emphasize on the use of advanced analytics to achieve the business outcomes, benefits, and insights. Countless dashboards can be generated but the focus should remain on the most important and meaningful information that reflect the overall strategy in order meet business objectives. Less is more.
The information provided in this article is for general information purposes only. You should always seek for professional advice suitable to your needs.