Business Model Metrics and KPIs

SUPER GUIDE: Business Model Metrics and KPIs

The Super Guide about Business Model Metrics and KPIs is a complete guide on explain the different types of metrics typically available based on the business model you are using to help you with decision-making in your business.

Table of content

1. Introduction
2. What Are Business Metrics?
3. What Are Kpis?
4. Business Metrics Vs. Kpis
   1. The Key Differences Between Kpis And Metrics
   2. Example: Kpi Vs. Metrics
   3. Every Kpi Is A Metric, But Not Every Metric Is A Kpi
   4. The Relationship Between Kpis And Metrics
5. Benefits Of Tracking Business Metrics
6. Why Is Kpi Important?
7. The Goals Of Business Model Metrics
8. What Business Metrics Should You Use?
9. Key Business Metrics In Different Business Models
   1. Saas Business Model Metrics
      1. Monthly Unique Visitors
         1. Why Is It Important To Measure Unique Visitors?
         2. How To Measure Unique Visitors?
      2. Signups
         1. Why Is Tracking Signups Important?
      3. Product-Qualified Leads (Pqls)
         1. How To Identify The Pql For Your Business?
      4. Qualified Lead Velocity Rate (Lvr)
         1. How To Calculate Qualified Lead Velocity Rate?
         2. What’s A Good Lvr?
      5. Organic Vs. Paid Traffic Roi
      6. Viral Coefficient
         1. Why Is The Viral Coefficient Important?
         2. How To Calculate Viral Coefficient?
      7. Customer Conversion Rate
         1. Why Is Customer Conversion Rate Important?
         2. How To Calculate Customer Conversion Rate?
      8. Average Revenue Per Account (Arpa)
      9. Why Is Arpa Important?
      10. How To Calculate Arpa?
      11. How To Increase Arpa
      12. Customer Acquisition Cost (Cac)
          1. How To Calculate Customer Acquisition Costs
          2. Why Is Customer Acquisition Cost (Cac) Important
          3. Who Is Customer Acquisition Cost Metric Important To?
          4. How You Can Improve Your Customer Acquisition Cost
      13. Monthly Recurring Revenue (Mrr)
          1. Why Is Mrr Important?
          2. How To Calculate Mrr?
      14. How To Improve Your Mrr?
      15. Number Of Support Tickets Created
          1. How To Calculate The Number Of New Support Tickets?
      16. Average First Response Time
          1. Why Is Average First Response Time Important?
          2. How To Calculate Average First Response Time?
      17. How Do You Reduce The First Response Time?
      18. Average Resolution Time (Art)
          1. Why Is Art Important?
          2. How To Calculate Art?
          3. What Is A Good Art?
          4. How To Improve Your Art?
      19. Net Promoter Score (Nps)
          1. How To Calculate The Net Promoter Score
          2. How To Improve Your Net Promoter Score
      20. Number Of Active Users
          1. Why Should You Measure Your Active Users?
          2. How To Measure Active Users
             1. Daily Active Users [Dau]
             2. Weekly Active Users [Wau]
             3. Monthly Active Users [Mau]
      21. Customer Retention Rate (Crr)
          1. Retention Rate Vs. Churn Rate
          2. Why Is Customer Retention Rate Important?
          3. How To Calculate Customer Retention Rate?
          4. What Is A Good Crr?
          5. How To Improve Your Customer Retention Rate?
      22. Churn Rate
          1. How To Calculate The Churn Rate
      23. Customer Lifetime Value (Cltv)
          1. Why Is Customer Lifetime Value Important?
          2. How To Calculate Customer Lifetime Value?
          3. How To Increase Your Customer Lifetime Value?
      24. Customer Health Score
          1. Why The Customer Health Score Is Important
          2. How To Measure Customer Health Scores
          3. How Can You Improve Your Customer Health Score?
      25. Lead-To-Customer Rate
          1. Why Is Lead To Customer Rate Important?
          2. How To Calculate Lead-To-Customer Conversion Rate?
      26. Leads By Lifecycle Stage
          1. Why Is The Lead Lifecycle Important?
      27. Customer Engagement Score (Ces)
          1. Why Is The Customer Engagement Score Important?
          2. How To Calculate The Customer Engagement Score?
          3. What Is A Good Customer Engagement Score?
          4. How To Increase Your Customer Engagement Score
      28. Customer Churn
          1. Why Is Customer Churn Rate Important?
          2. How To Calculate Customer Churn?
          3. How To Reduce Customer Churn?
      29. Revenue Churn Rate
          1. Why Is Revenue Churn Important?
          2. How To Calculate Revenue Churn?
          3. What Is A Good Revenue Churn Rate?
      30. Annual Contract Value (Acv)
          1. Why Is Annual Contract Value Important?
          2. How To Calculate Acv?
      31. Average Sales Cycle Length
          1. How To Calculate The Sales Cycle Length
          2. Why Is Sales Cycle Length Important?
      32. Net Mrr Churn Rate
          1. Why Is The Net Churn Rate Important?
          2. How To Calculate Net Mrr Churn Rate?
          3. What Is A Good Net Mrr Churn Rate Benchmark?
          4. How To Reduce Mrr Churn?
      33. Mrr Retention Rate
          1. How To Calculate Mrr Retention Rate
          2. How To Improve Retention
      34. Average Selling Price (Asp)
          1. Why Is Asp Important?
          2. How To Calculate Asp?
          3. What Is A Good Asp?
      35. Annual Run Rate (Arr)
          1. Why Is Annual Run Rate Important?
          2. How To Calculate Annual Run Rate?
      36. Lifetime Value: Customer Acquisition Cost (Ltv: Cac) Ratio
          1. Why Is Ltv: Cac Important?
          2. What Is The Formula For Ltv: Cac Ratio?
          3. How To Improve Your Ltv/Cac Ratio?
      37. Cac Payback Period
          1. How Is The Payback Period Useful To Other Saas Metrics?
          2. How To Calculate The Payback Period?
          3. How Do You Reduce The Payback Period?
      38. Saas Quick Ratio (Qr)
          1. Why Is Saas Quick Ratio Important?
          2. How To Calculate Saas Quick Ratio?
          3. What Is A Good Saas Quick Ratio?
      39. Trial Conversion Rate
   2. Franchise Model Metrics & Kpis
      1. Same-Store Sales
         1. Why Is Comparable Store Sales Important?
         2. How To Calculate Comparable Store Sales?
      2. Net Promoter Score (Nps)
      3. Average Sales Ticket
         1. How To Increase Your Average Ticket Sale
      4. Sales Per Square Foot
         1. Why Are Sales Per Square Foot Important?
         2. How To Calculate Sales Per Square Foot?
         3. How To Increase Sales Per Square Foot?
      5. Franchise Growth Rate
      6. Retail Conversion Rate
         1. How To Calculate The Retail Conversion Rate
         2. What Is The Average Conversion Rate For Retailers?
         3. Why Is Retail Conversion Rate Important?
         4. How To Improve Your Retail Store Conversion Rate?
      7. Gross Sales
         1. Why Is Gross Sales Important?
         2. How To Calculate Gross Sales?
      8. Rankings
      9. Net Profit (Np)
         1. How To Calculate Net Profit?
   3. Subscription Business Model Metrics & Kpis
      1. Freemium Conversion Rate
         1. Why Is The Freemium Conversion Rate Important?
         2. How To Calculate The Freemium Conversion Rate?
         3. What Is The Ideal Freemium Conversion Rate?
         4. How To Optimize Your Freemium Conversion Rate
      2. Trial Conversion Rate
         1. Why Is A Free Trial Conversion Rate Important?
         2. How To Calculate Trial Conversion Rate?
         3. What Is A Good Trial Conversion Rate Benchmark?
         4. How To Improve Your Free Trial-To-Paid Conversion Rate?
      3. Retention Rate
         1. Why Is Retention Rate Important?
         2. How To Calculate Retention Rate?
         3. How To Improve Retention Rate?
      4. Ltv: Cac Ratio
      5. Payback Period
         1. Why Should You Measure The Payback Period?
         2. How To Calculate Payback Period?
      6. Net Promoter Score
      7. Average Order Value (Aov)
      8. Lead Velocity Rate (Lvr)
      9. Annual Recurring Revenue (Arr)
      10. Customer Lifetime Value (Ltv)
      11. Average Revenue Per Customer (Arpc)
          1. Why Should You Measure Arpc?
          2. How To Calculate Arpc?
      12. Quick Ratio
          1. Why Should You Measure The Quick Ratio?
          2. How To Calculate Quick Ratio?
      13. Gross Margin Percentage
          1. How To Calculate Gross Margin Percentage?
      14. Customer Acquisition Cost (Cac)
      15. Monthly Recurring Revenue (Mrr)
      16. Monthly Recurring Revenue (Mrr) Growth
      17. Mrr Churn
      18. Cohort Analysis
      19. Subscriber Return On Investment (Roi)
      20. Subscriber Churn
          1. Why Should You Measure Subscriber Churn?
          2. How To Calculate Subscriber Churn?
   4. Open-Source Business Model Metrics & Kpis
      1. Activity
      2. Size
      3. Performance
      4. Demographics
      5. Diversity
      6. Referral Traffic
         1. How To Calculate Referral Traffic?
      7. Total Unique Visitors
         1. Why Is It Important To Measure Unique Visitors?
         2. How To Measure Unique Visitors?
      8. Total Page Views
         1. How To Calculate The Number Of Visitor Page Views?
   5. Freemium Business Model Metrics & Kpis
      1. Customer Acquisition Cost (Cac)
      2. Customer Churn
      3. Conversion Rate
      4. Active Users
         1. Daily Active Users
         2. Monthly Active Users
   6. Peer-To-Peer Business Model Metrics & Kpis
      1. Cost Per Invoice
      2. Invoice Processing Times
      3. Average Payment Period (Avp)
         1. How To Calculate The Average Payment Period?
      4. First-Time Match Rate
      5. On-Time Payment Rate
      6. Contactless Invoice Processing Rate
      7. Automatically Processed Invoices Rate
      8. Supplier Rate Per 1,000 Invoices
      9. Duplicate Payments Rate
      10. Realized Cash Discount Rate
   7. Affiliate Marketing Business Model Metrics
      1. Clicks
      2. Number Of New Affiliate Partners
      3. Customer Lifetime Value (Ltv)
      4. Return On Ad Spend (Roas)
         1. Why Is Roas Important?
         2. How Do You Calculate The Return On Ad Spend?
         3. What Is A Good Roas?
         4. How To Increase Roas?
      5. Cost Per Click And Cost Per Sale
      6. Click Traffic Rate
      7. Incremental Revenue
         1. Why Is It Important?
         2. How To Measure Incremental Revenue?
      8. Cost Per Sale Or Cost Per Lead
         1. Why Is Cost Per Lead Important?
         2. How To Calculate Cost Per Lead?
         3. How To Reduce Your Cost Per Lead?
      9. Affiliate Contribution Margin
         1. How To Calculate The Affiliate Contribution Margin?
      10. Active Affiliates Rate
          1. How To Calculate Active Affiliates Rate?
      11. Reversed Sales Rate
      12. Return On Investment (Roi)
          1. How To Calculate Roi?
      13. Affiliate Engagement
          1. How To Measure Affiliate Engagement?
          2. How To Improve Affiliate Engagement?
      14. Conversion Rate
      15. Average Order Value (Aov)
          1. Why Is Average Order Value Important?
          2. How To Calculate The Average Order Value?
          3. How To Improve Average Order Value
      16. Traffic Quality
      17. Growth
      18. Trigger Links
      19. Organic Traffic
      20. Sales Per Affiliate
      21. Top 10 Affiliate Partners
      22. Effective Earnings Per Click (Eepc)
      23. Earnings Per Click (Epc)
          1. Why Tracking Earnings Per Click Is Important?
          2. How To Calculate Earnings Per Click?
          3. How To Increase Epc?
   8. Agency-Based Business Model Metrics & Kpis
      1. Qualified Leads: Mqls And Sqls
         1. How To Calculate The Mql To Sql Conversion Rate?
      2. Customer Acquisition Cost (Cac)
      3. Customer Lifetime Value (Clv)
      4. Proposals Sent
      5. Win Rate
      6. Agency Profit Margin
         1. How To Calculate The Agency Profit Margins
         2. How To Increase Agency Profit Margins?
      7. Cash Flow From Operations
         1. Why Is Cash Flow From Operations Important?
         2. How To Calculate Cash Flow From Operations?
      8. Agency Utilization Rate
         1. Why Is Agency Utilization Rate Important?
         2. How Do You Calculate Agency Utilization Rate?
         3. What Is The Ideal Agency Utilization Rate?
         4. How To Increase Utilization Rate?
      9. Client Retention Rate
      10. Average Churn Rate
   9. Content-Based Business Model Metrics
      1. Unsubscribe Rates
         1. Why Is The Email Unsubscribe Rate Important?
         2. How To Calculate The Email Unsubscribe Rate?
         3. What Is A Good Unsubscribe Rate?
         4. How To Reduce Your Email Unsubscribe Rate?
      2. Repeat Purchase Rate
         1. How To Calculate The Repeat Purchase Rate
         2. Why Repeat Purchase Rate Is Important
         3. How To Increase The Repeat Purchase Rate
      3. Returning Visitors
         1. How To Calculate Returning Visitor Metric
         2. How To Increase Your Rate Of Returning Visitors?
      4. Average Order Value (Aov)
      5. Organic Traffic
      6. Reach
      7. Return On Ad Spend (Roas)
      8. Return On Investment (Roi)
         1. Why Calculating Content Marketing Roi Is Important?
         2. How To Calculate The Content Marketing Roi?
      9. Cost Of Acquisition (Cac) On Content Marketing
         1. Why Is Cac Important In Content Marketing?
         2. How To Calculate Cac?
         3. What Is A Good Cac?
      10. Bounce Rate
          1. Why Is Measuring Bounce Rate Important?
          2. How To Calculate Bounce Rate?
          3. What Is A Good Bounce Rate?
          4. How To Reduce High Bounce Rates?
      11. Content Engagement Rate
          1. Why Is Engagement Rate Important?
          2. How To Calculate Engagement Rate?
          3. What Is A Good Engagement Rate?
      12. Conversion Rates
      13. Click-Through Rates
          1. Why Is The Email Click-Through Rate Important?
          2. How To Calculate The Email Click-Through Rate?
          3. Difference Between Ctr And Ctor
          4. What Is A Good Click-Through Rate?
          5. How To Improve Your Email Click-Through Rate?
      14. Pages View Per Session
          1. How To Calculate Page Views Per Session?
          2. What Is A Good Number Of Pages Per Session?
          3. How To Improve Your Page View Per Session?
      15. Average Time On Page
          1. How To Calculate Average Time On Page
          2. What Is A Good Average Time On Page?
          3. How To Improve Your Average Time On Page?
      16. Average Time To New Content
      17. Keyword Click-Through Rate
      18. Average Lead Score
          1. Why Is Average Lead Score Important?
          2. How To Calculate Average Lead Score?
      19. Online Conversions Metric
          1. How To Calculate Online Conversions Metric
      20. Sessions By Device Type
      21. Website Traffic Lead Ratio
          1. Why Is Website Traffic Lead Ratio Important?
          2. How To Calculate Website Traffic Lead Ratio?
      22. Keyword Opportunity
   10. Ecommerce Business Model Metrics & Kpis
       1. Sales Per Labor Hour
          1. Sales Per Hour Vs. Items Per Hour In Retail
          2. How To Calculate The Sales Revenue Per Hour
          3. Why Is Sales Per Man Hour Important?
       2. Customer Acquisition Cost (Cac)
       3. Cost Per Acquisition (Cpa)
          1. Why Does Cost Per Acquisition Matter?
          2. How To Calculate Cost Per Acquisition?
          3. What Is A ‘good’ Cost Per Acquisition?
       4. Churn Rate
       5. Revenue Per Visitor (Rpv)
          1. Why Is Rpv Important?
          2. How To Calculate Rpv?
          3. How To Increase Rpv?
       6. Customer Lifetime Value (Clv)
       7. Net Profit
          1. Difference Between Net Profit, Net Income, And Net Earnings
          2. Why Is Net Profit Important?
          3. How To Calculate Net Profit?
          4. How To Increase Your Net Profit?
       8. Net Profit Margin
          1. Net Profit Margin Vs. Gross Profit Margin
          2. Why Is Net Profit Margin Important?
          3. How To Calculate Net Profit Margin?
          4. How To Improve Your Net Profit Margin?
       9. Average Order Value (Aov)
       10. Conversion Rate
       11. Customer Retention Rate
       12. Shopping Cart Abandonment Rate
           1. Why Should You Calculate The Shopping Cart Abandonment Rate?
           2. How To Calculate The Shopping Cart Abandonment Rate?
           3. How To Reduce The Shopping Cart Abandonment Rate?
       13. Add To Cart Conversion Rate
           1. How To Calculate Add To Cart Conversion Rate?
           2. How To Improve Your Add-To-Cart Conversion Rate?
       14. Gross Merchandise Volume (Gmv)
           1. Why Is Gmv Important?
           2. How To Calculate Gmv?
       15. Influencer Roi
       16. Return On Ad Spend (Roas)
       17. Return On Marketing Investment
           1. How To Calculate Return On Marketing Investment (Romi)
           2. Best Practices For Measuring Marketing Roi
           3. What Is A Good Marketing Roi?
           4. What Are The Challenges Of Measuring Marketing Roi?
           5. Why Is Return On Marketing Investment Important?
       18. Average Revenue Per Account (Arpa)
       19. Bounce Rate
       20. Shopping Cart Abandonment Rate
       21. Net Promoter Score (Nps)
       22. Customer Health Score (Chs)
       23. First Response Time
       24. Revenue Per Email (Rpe)
           1. Why Is Rpe Important?
           2. How To Calculate Rpe?
           3. How To Increase Your Rpe?
       25. Revenue Per Subscriber (Rps)
           1. Why Is Rps Important?
           2. How To Calculate Rps?
           3. How To Improve Your Rps?
       26. Pay-Per-Click (Ppc)
       27. Average Resolution Time
       28. Basket Size
           1. Why Basket Size Is Important?
           2. How To Calculate Basket Size?
           3. How To Increase Basket Size?
       29. Lead Conversion Rate
           1. Why Is Lead Conversion Rate Important?
           2. How To Calculate Lead Conversion Rate?
           3. What’s A Good Lead Conversion Rate?
           4. How To Increase Your Lead Conversion Rate?
       30. Web Traffic Concentration
           1. Why Is Web Traffic Concentration Important?
           2. How To Calculate Web Traffic Concentration?
       31. Dormancy Rate
           1. Why Is Dormancy Rate Important?
           2. How To Calculate Dormancy Rate?
       32. Customer Share By Category
           1. Why Is Customer Share By Category Important?
           2. How To Calculate Customer Share By Category?
       33. Cost Per Action (Cpa)
           1. Why Is Cost Per Action Important?
           2. How To Calculate Cost Per Action?
           3. How To Optimize Your Cost Per Action?
       34. Marketing Originated Customers
           1. How To Calculate Marketing Originated Customers?
       35. Funnel Conversion Rate
           1. Why Is Funnel Conversion Rate Important?
           2. How To Calculate Funnel Conversion Rate?
           3. What’s A Good Funnel Conversion Rate?
           4. How To Increase Your Funnel Conversion Rate?
       36. Response Rate
           1. Why Is Response Rate Important?
           2. How To Calculate Response Rate?
           3. How Can You Improve Your Response Rate?
       37. Click-Through Rate (Ctr)
           1. Why Is Click-Through Rate Important?
           2. How To Calculate Click-Through Rate?
           3. What Is A Good Click-Through Rate?
           4. How To Optimize Your Click-Through Rate?
   11. Retail Sales Business Model Metrics & Kpis
       1. Sales Per Square Foot
       2. Sales Per Employee
          1. How To Calculate Sales Per Employee?
       3. Conversion Rate
       4. Gross Profit (Gp)
          1. Gross Profit Vs. Gross Profit Margin
          2. How Is Gross Profit Different From Net Profit?
          3. Why Is Gross Profit Important?
          4. How To Calculate Gross Profit?
       5. Gross Profit Margin
          1. Gross Profit Margin Versus Markup
          2. Why Is Gross Profit Margin Important?
          3. How To Calculate Gross Profit Margin?
          4. What Is A “Good” Gross Profit Margin?
          5. How To Increase Your Gross Profit Margin?
       6. Net Profit
       7. Average Order Value
       8. Basket Size
       9. Year-Over-Year Growth
          1. Why Is Year-Over-Year Growth Important?
          2. How To Calculate Year-Over-Year Growth?
       10. Inventory Turnover
           1. Inventory Turnover Vs. Days Sales Of Inventory
           2. Why Is Inventory Turnover Important?
           3. How To Calculate Inventory Turnover?
           4. What Is A Good Inventory Turnover?
           5. How To Improve Your Inventory Turnover?
       11. Sell-Through Rate
           1. How To Calculate The Sell-Through Rate
           2. Why Is The Sell-Through Rate Important?
           3. How To Increase Your Sell-Through Rate
       12. Inventory Shrinkage
           1. How To Calculate Inventory Shrinkage?
           2. How To Control Inventory Shrinkage?
       13. Gross Margin Return On Investment (Gmroi)
           1. What Is A Good Gmroi In Retail?
           2. How To Calculate The Gross Margin Return On Investment (Gmroi)
           3. Why Is Gmroi Important?
           4. How To Increase Gross Margin Return On Investment?
       14. Foot Traffic
           1. What Is Foot Traffic In Retail?
           2. Why Is Tracking Foot Traffic Important?
           3. How Do You Measure Foot Traffic?
           4. How To Increase Foot Traffic?
       15. Retention
       16. Foot Traffic And Digital Traffic
       17. Same-Store Sales
   12. Distribution-Based Business Model Metrics & Kpis
       1. Put Away Cycle Time
       2. Order Lead Time
       3. Perfect Order Rate
       4. Back Order Rate
          1. How To Calculate Back Order Rate?
       5. Lost Sales
          1. How To Calculate Lost Sales?
       6. Picking And Packing Cost
       7. Picking Accuracy
          1. How To Calculate Picking Accuracy?
       8. Receiving Cycle Time
          1. How To Calculate Receiving Cycle Time?
       9. Returns Due To Improper Shipment
       10. Labor And Equipment Utilization
           1. How To Calculate Labor And Equipment Utilization?
       11. Order Cycle Time
           1. Why Is Order Cycle Time Important?
           2. How To Calculate Order Cycle Time?
           3. How To Improve Order Cycle Time?
   13. Online Educational Business Model Metrics & Kpis
       1. Student Progress
       2. Learner Competency
       3. Instructor Effectiveness
       4. Customer Satisfaction
   14. Drop-Shipping Business Model Metrics & Kpis
       1. Inventory Feed Score
       2. On-Time Delivery
          1. Why On-Time Delivery Metrics Matter?
          2. How To Calculate Your On-Time Delivery Metrics?
          3. How To Improve Your On-Time Delivery Metrics?
       3. Order Fill Rate
          1. How To Calculate The Order Fill Rate?
   15. Cash Machine Business Model Metrics & Kpis
       1. Unit Quantity And Location
       2. Performance Of Each Unit
       3. Uptime And Downtime By Unit
       4. Product Or Cash Dispensed
       5. Cost Of Cash And Product
       6. Profitability
       7. Contract Status
10. Conclusion

Read an excerpt from this Business Model Metrics and KPIs Super Guide:

“To conduct an accurate analysis of the success of your business, you will need to put into place a set of indicators that can be quantified. And that’s what business metrics are: They are quantifiable indicators used to measure business performance. These metrics can help you decide if your business is on the right track to profitability or if it’s failing.”

This is must-have knowledge for entrepreneurs and business model analysts, and consultants if you want to dominate business models, this super guide was made especially for you.

Product images are for illustrative purposes only