15 Important Small Business Performance Metrics to Track

15 Important Small Business Performance Metrics to Track

You will find many keys to success when owning a small business. A small business owner must track specific metrics to lead their company to success. That is why we are revealing our list of the 15 most vital small business performance metrics for you to track. 

At Group Enroll, we partner with the best small business health insurance companies to provide quotes for group packages that help insure yourself and your employees. 

Finding the right insurance package for your small business can be daunting. That is the benefit of using our service to match you with the insurance provider that meets your company’s specific needs.

Table of Contents

Sales and Marketing Business Metrics

Sales are the lifeblood of a small business. To generate profit, you must have the ability to sell your products or services successfully. 

One of the ways to boost your sales is to invest in marketing for your business. Marketing is a competitive industry, and you must be attentive to specific metrics to help you succeed. 

Here are some sales metrics that you can track to improve your small business success.

01. Sales Revenue

02. Net Profit

03. Sales Growth Rate

04. Average Leads per Month

05. Lead Conversion Rate

06. Recurring Revenue

Customer Service Metrics

Another vital aspect of a small business is customer service. You want your customers to trust your company and keep coming back. If you neglect your loyal customers, they will have no issue taking their business elsewhere. 

As a business owner, you should always put the customer first. It does not matter if your product or service is top-notch if you mistreat your customers. 

Here are some key metrics that will help you gauge the customer service success of your small business.

07. Customer Lifetime Value

08. Customer Retention Rate

09. Customer Satisfaction

10. On-Time Delivery Rates

11. Customer Acquisition Cost

12. Shipping Accuracy

Operational Metrics

Operational expenses are the root of many financial problems for small businesses. While most small businesses focus on shaving down marketing and delivery costs, institutional expenses are more critical to supervise. 

Here are some of the operational small business performance metrics to track.

13. Payroll

14. Overtime Cost

15. Vehicle Utilization

Frequently Asked Questions

We understand that you may have more questions about tracking small business performance metrics. Here are some of the most frequent questions people ask about growing their business.

Many small business owners worry about whether their business is growing the right amount. Truthfully, every business is different—plus, each industry has its own average growth rate. 

Industry metrics show that you can expect your small business to grow by 15 to 25 per cent each year. However, it is common for startups to lose money during their first couple of years. 

Also, you do not want to grow too much during your first few years of managing a company. Excessive growth can be overwhelming for a fledgling company. 

Your business should aim to grow at a comfortable pace for yourself and your employees.

Most Canadian companies classify themselves as small businesses. Small businesses account for over 99% of the workforce. 

The one threat for the future of small businesses is if multi-billion dollar companies such as Amazon and Google buy up the majority of small businesses. However, your business should not worry about that happening, as many people rely on small businesses to survive.

No “one size fits all” rule applies to profit margins for small businesses. Typically, experts consider a 5% profit margin low. 

Your company should aim for a profit margin of 10% to find success. If you want a sizable goal to reach, you can set your target profit margin at 20%. 

Your company should determine your profit margin according to your business’s industry. For example, a retail or grocery business will always be low-margin due to its sizable amounts of inventory. Conversely, software businesses have high-profit margins because they do not require a lot of overhead costs.  

Here are a few average profit margins for different industries. 

  •       Advertising: 3.3%
  •       Investment Banking: 17.62%
  •       Engineering: 1%
  •       Information Services: 19.13%
  •       Retail: 2.4%

If your profit margin is lower than you want it to be, here are a few things that you can do to get it on the right track.

Reduce Operating Expenses

Firstly, you should reduce as many operating costs as possible. Operating expenses include office space, utilities, equipment repairs, and much more. 

If you have too many office expenses, you will have to produce more sales to profit. Similarly, when looking for commercial office space to rent, make sure that it is affordable. Paying high rent on an office building is an easy way to find yourself in debt.

Eliminate Underperforming Products and Services

A small business owner needs to track the success of each product or service they sell to consumers. One of the most notorious ways business owners lose money is by selling products that are not worth it. 

If you spend thousands of dollars marketing a low-sales product, it is a waste of time and money. Your small business should consider investing in a break-even analysis that will inform you which products or services produce a profit for your business.

Adjust Your Pricing Strategy

As a small business owner, you must develop a sound pricing strategy to ensure that you sell your products and services at a fair price. These strategies require a lot of research into industry price averages, location, demographics, and more. 

One reason why your products may not sell well is that consumers believe they are overpriced. It shocks many small business owners how changing their prices increases a customer’s willingness to buy their products. You may find increased website traffic for your brand.

Incentivize Loyalty

As you see above, repeat business is a principal component to establishing a successful small business. Many grocery and retail brands offer rewards cards or credit cards that incentivize customers to return to their stores frequently. 

This method is just one of many that you can implement in your business to keep customers coming back. When you have loyal customers, it helps cut down your advertising costs.

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Our Process

At Group Enroll, we match your business’s needs with the best group health insurance companies in Canada. In addition to health care packages, we provide quotes for group dental insurance, group disability insurance, group life insurance, and others. 

The process starts when you fill out our quote form. This form gives us the specifics of your business, such as its size and number of employees. 

Then, one of our top-notch customer service reps will call you to discuss your insurance needs in more detail. You can expect this brief call to last less than ten minutes. 

After we know the ins and outs of your requirements, we will contact between five and ten different group insurance providers and receive quotes from each within a few business days. 

Finally, we will email you the most competitive proposal out of the bunch. And that is all there is to it!

Get Quotes From Group Health Insurance Providers

Group Enroll is Canada’s leading supplier of group benefits package quotes for small businesses. We can connect you with the top group insurance companies in the country after you fill out our quote form

Some of the group insurance companies we work with include Sun Life, Manulife, and other top brands. 

If you have any questions or concerns about setting your business up with a group insurance policy, email us at hello@groupenroll.ca. You may also visit us at 10 Great Gulf Drive, Unit 5, Vaughan, ON, L4K 5W1.