Alex Sanders https://floodbrothersplumbing.com 2m 464 #managers
The views of this article are the perspective of the author and may not be reflective of Confessions of the Professions.
From navigating client deadlines to managing plumbing emergencies, juggling a team, projects, and unexpected hiccups are all part of the wild ride of being a business manager. But with so much going on, how do you know if you’re actually steering the ship in the right direction? Here’s where performance metrics come in and here are 3 helpful metrics.
Revenue Growth
Really, revenue growth simply tells you if your business is bringing in more money over time. There are different ways to measure it, but a common one is year-over-year growth. This shows you how your sales this year compare to the same period last year.
Basically, a rising number is a good sign your strategies are working and there’s customer demand for what you offer. But a stagnant or dipping number might indicate needing to adjust your approach; maybe it’s time to revamp your marketing tips, explore new sales channels, or take a closer look at pricing.
Net Promoter Score (NPS)
Happy customers are loyal companions on your business journey and the Net Promoter Score (NPS) helps you gauge how likely your customers are to recommend your business to others. It boils down to one simple question: “On a scale of 0 to 10, how likely are you to recommend our company to a friend or colleague?”
Think of NPS as a word-of-mouth meter. Promoters (scores 9-10) are your champions, spreading positive vibes. Detractors (scores 0-6) are unhappy and could damage your reputation. Ideally, you want a high NPS, indicating a strong customer base that trusts you. A low score means it’s time to dig into what’s making customers unhappy and fix it.
Employee Engagement
Your team is the engine that keeps your business running. Employee engagement measures how invested and motivated your staff are. Engaged employees are enthusiastic, productive, and less likely to leave.
Here are some ways to gauge engagement:
- Employee satisfaction surveys. Ask your team directly about their experience at work.
- Turnover rate. A high turnover rate might indicate a disengaged workforce.
- Productivity metrics. See if teams are meeting goals and deadlines.
Why does this matter? A happy and engaged team is a recipe for success. They’ll go the extra mile, collaborate effectively, and contribute their best ideas. Disengaged employees, on the other hand, can be less productive and bring down morale. By keeping an eye on engagement, you can identify areas for improvement and create a work environment that keeps your team thriving.
Of course, you want to remember that numbers are powerful, but they don’t tell the whole story. Look beyond the metrics and understand the “why” behind them. For example, a dip in sales could be due to seasonal trends, not a failing product. Talk to your team, dig into customer feedback, and use the data to make informed decisions.
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