In a world of information overload, with data and insights constantly competing for our attention, it can be incredibly difficult at times to focus on what truly matters. When more urgent things get attention as opposed to what’s important, then it’s a good warning sign that things need to change.
It’s about discerning what’s for you versus what’s just noise. There are many FOMO-generating things out there these days (you must have/read this, don’t do this until you have that, etc etc). It just overcomplicates things and usually creates an admin burden, consuming valuable time from resources without an improved decision or outcome.
We’ve helped a few clients with this recently, around what reports, metrics and numbers are important for their business and where they are headed. The right metrics help ensure progress is aligned to the strategy, show both profitability and cash, and provide an early warning sign of any deviations so corrective action can be taken.
The same metric can be vital in one industry and virtually meaningless in another. For example, take an online retailer they will find customer acquisition cost (CAC) more relevant with its advertising spend, whereas a high street retailer with a physical presence would benefit more from sales per square metre.
Likewise, an IT services business’s best metric is often staff utilisation, as people are the product. A shop measuring its staff the same way could end up understaffed during it’s busiest moments - not great customer experience, nor for sales!
Similarly, an IT provider would benefit from keeping a close eye on client retention with its recurring contracts, whereas a plumber tends to be called upon when something breaks or for a reno project, so referrals and reviews matter more than repeat business.
It’s about choosing the metrics that measure the engine of your business model, not ones that look like they might be important on a dashboard. You’re not missing out, rather you’re being more selective about what propels and what is simply drag. Energy flows where focus goes.
If you’d like some help setting your metrics that best suit your business, get in touch with us and book a free discovery call.