The new year presents a wide array of opportunities for business owners. Business News Daily reports that small businesses are set to adopt new technologies including the implementation and advancement of AR and VR. Moreover, Nasdaq is claiming that over 17 million new small businesses are expected to start operating in 2022. This means that entrepreneurs must step their game up with their marketing strategies in 2022 and the years to come.
In this article, we will discuss what business process metrics are and why you should start tracking them as soon as possible.
What are Business Process Metrics?
Business process metrics are used to track, assess, and monitor the performance of the organization and its people. Every aspect and component within the company can be measured using process metrics. Doing this will help you understand what works for your brand and what doesn’t. Here are other advantages that you can experience once you implement business process metric tracking to your organization:
- You’ll be able to track your progress. Seeing actual numbers and presenting the correct data to the team can help you track your progress better.
- Helps with decision-making. Trying to make a decision out of pure gut feeling can lead to disaster. Having the right metrics and getting an insight into the facts can help team leaders and entrepreneurs make informed business decisions.
- Better visibility. Being aware of what’s exactly happening to your brand will help you solve issues ahead of time. To further improve visibility within the company, consider using a business process automation tool for you and the whole team.
- It helps motivate your employees. Keeping your team members informed about the issues and solutions that the company is experiencing will help motivate them. If they see that the brand is doing well and that their efforts are paying off, then they will most likely be encouraged to do their best.
Business process metrics can be implemented in different departments such as in IT, human resources, finance, and even in manufacturing.
What Business Process Metrics Should be Measured in 2022?
Key performance indicators and business process metrics have been around for a long time. However, marketing strategies have advanced over time, and business owners must learn to adapt to ensure their brand’s overall success. Listed below are some of the most important business process metrics that entrepreneurs must measure in 2022.
The Team’s Productivity
Your team’s overall output can affect the brand’s success. The more productive and efficient the employees are, the better conversion, sales, and revenue rates will be produced. To better measure productivity and process performance metrics in 2022, managers must keep track of the staff’s progress based on the tasks that they were able to finish. Determine how long they worked on a specific task and go from there.
Here are a couple of ways to measure your employee’s productivity:
- Track the output and not the hours.
- Set very specific objectives for every team member.
- If some of your employees often work directly with the customers, consider sending these buyers a satisfaction survey.
- Measure both the quality and quantity of work.
Measuring the individual’s productivity rate can give you a chance to compare your staff’s output and suggest improvements regarding the process.
Your Company’s Cost-Effectiveness
The new year presents the perfect time to get your budget in order. To make sure that your company wouldn’t lose money this year, it is crucial to track your cost-effectiveness. This includes measuring your cost per service, cost per unit, production value, return rate, customer acquisition cost, and basically every spending that you can think of.
To analyze your brand’s cost-effectiveness, all you have to do is divide the net cost by the outcome. If the ratio of the output is higher than or almost the same as the costs incurred, then your business is doing great. Freshworks created a guide on how to measure your organization’s cost-effectiveness and why you should start paying more attention to it.
Being efficient means having the capacity to finish a task on time and without using too many resources. Getting something done accurately will help the company save time and money. Companies should measure their employees’ efficiency, as well as their ability to provide their customers with a well-structured service.
To track the business’ efficiency, divide the production time with the total process time. Take everything into account including the time the task was started and how long it took for the designated employee to finish it. Furthermore, you should also keep tabs on when a customer complaint was submitted, how long it took for the marketing team to get back to them, and how many days or hours it took for the team to solve the issue at hand.
Using a business process automation tool within the organization will help you gain better visibility when it comes to tracking efficiency. Additionally, it will also help managers keep an eye on the projects that their team members are working on.
Your Brand Awareness or Sentiment
Customers who feel closer and more connected to the brand tend to stay loyal. Empathy plays a huge role in marketing. To support this claim, Digital Humans reports that over 95% of purchasing decisions are made subconsciously. However, they also reiterated that only 31% of advertisements are emotion-based, which means that less than half of the companies are not exactly on the empathy bus.
Measuring your brand sentiment means being aware of your company’s reputation. A high retention rate and word-of-mouth referrals stem from having loyal customers. To track your brand sentiment, make it a point to check and review your buyers’ comments and testimonials. Doing this will give you a view of how they perceive the brand and if they are satisfied with your services. Additionally, you can also give out surveys and ask for direct customer feedback for proper measurement.
Gather your team and compile the data that you have collected. Turn these into percentages and separate the negative comments from the positive ones. You can also use tools to gather consumer sentiment from different parts of the web.
Customer Lifetime Value
This year, you should try focusing on customer retention instead. Measure your current customer’s retention rate and determine how many of these people are loyal to your brand.
Focus on tracking your customer lifetime value or CLV. This metric shows how valuable a certain consumer is to the brand within the course of their whole relationship. Increasing a customer’s value will help drive revenue and growth to the company.
Here’s how to keep track of your customer loyalty and CLV:
- Determine how much they spend on your brand.
- Establish whether they are likely to make a repeat purchase or not.
- See how long they’ve been a customer.
- Find out if they are satisfied enough with the brand to stay and become a loyal consumer.
Here is a more in-depth guide of how you can measure your customer lifetime value.
Companies require different metrics for process improvement, but the ones that we have discussed above are some of the general ones that you can apply to your brand. Carefully study your organization’s current standing and determine which metrics you should be measuring in 2022. Doing this will give you an advantage over your competitors and help you achieve your business goals for the year.