If you want to grow your business, you must have a clear idea of how it’s performing, which is why you need business analytics.
Knowing how to track business analytics helps you see exactly what works and what doesn’t and set your company on the right path. However, you might feel unsure about what to watch for.
Check out this article for essential business statistics you need to be tracking.
Total revenue is how much money your business makes through its activities. Without revenue, you can’t pay for the costs of running your company.
Total revenue is one of the key numbers to track for every organization. It is also the most straightforward metric to monitor.
If your company sells more than one item, break down the revenue by price points. It’ll help you which products are successful and which aren’t.
Profit and Loss Statement
The profit and loss (P&L) statement summarizes how much money you earn and spend. It includes revenues, costs, and expenses during a particularized period. The P&L statement is also called an income statement.
The P&L statement lets you know whether your company can generate profit and how stable it is. Check out these examples on how to create a P&L statement.
Sales teams set up targets to meet, representing how much revenue each sales rep generates over a specific period. This metric is defined according to the revenue goals established by the company.
It’s essential to keep track of whether your sales team is hitting the target. It also allows you to see how each employee is performing. Ideally, the majority of your team should fulfill the quota.
If that’s not the case, you might be aiming for unrealistic targets. Alternatively, it might be time to give your employees further training to take up the challenge.
Tracking your business numbers is useful to see if you’re acquiring new customers. Marketing campaigns are designed to increase awareness of your business and get people interested in what you do.
It is essential to see if your campaigns are effective. Otherwise, you’re just wasting money. Acquisition data helps you measure the rate at which you’re able to attract new clientele.
This metric ensures that you’re generating enough leads to hit your revenue targets.
Once you’ve acquired a new customer, it’s crucial to know whether they remain a customer. Retention metrics are meant to keep track of customer loyalty.
There are various ways to get this data depending on your activity. For instance, you can track the number of visitors to your website who have been there before or establish a membership.
The Essential Business Statistics to Track
Business statistics are critical for small businesses and big companies alike as they allow you to assess how you’re doing.
Know how much revenue you generate and integrate it into a P&L statement. Are you hitting your sales target? Don’t forget to track how many new customers you’re getting and if they’re staying loyal to you.
Want more valuable tips? Check out our other business articles.