Achieving sustainable business growth requires monitoring and analyzing various metrics to understand performance, identify opportunities, and make informed decisions. Here’s a comprehensive guide outlining key metrics across different areas of business that contribute to success and the roles responsible for monitoring them:
1. Financial Metrics:
- Revenue Growth Rate: Indicates the company’s sales growth by calculating the percent change in revenue during a specific timeframe.
- Profit Calculates the percentage of revenue that remains as profit after expenses, reflecting the efficiency of operations and pricing strategies.
- Cash Flow: Tracks the movement of cash into and out of the business, ensuring there’s enough liquidity to cover expenses and invest in growth.
- Customer Lifetime Value (CLV): Estimates the total revenue a business can expect from a single customer over their lifetime, guiding customer acquisition and retention efforts.
Revenue Growth Rate: CFO, Finance Manager
Profit CFO, Finance Manager
Cash Flow: CFO, Finance Manager
Customer Lifetime Value (CLV): CFO, Finance Manager