Business metrics are a crucial way to ensure transactions between businesses and customers, increase profits, and track the gains and losses of transactions. That's why metrics are so important to the overall growth of a business. With these, entrepreneurs can increase profits without additional investment and find new ways.

What are business metrics?

Business metrics are the mathematical methods used to measure the performance of a business. In almost every industry, the efficiency of the business is enhanced using various metrics.

Key business metrics that increase profitability

1. The EBITDA

EBITDA refers to E earnings, B before, I interest, T axes, D appreciation and A mortgages. EBITDA is defined as earnings before interest, taxes, depreciation and amortization. It is a metric used to assess the performance of a company. A financial metric tool used to assess the profitability of a company by comparing its total revenue to its revenue. More specifically, this metric refers to the percentage of a company's revenue that remains after operating expenses.

2. Product Engagement

Through the interest that the customers have in the product, the level of interaction is examined and thereby the market is understood. Many ratios are used to create more interaction with customers' products and to drive higher customer satisfaction and sales. Retention rate, conversion rate, and social media are all examples of product engagement metrics.

3. Led conversion rate

Lead conversion rate (LCR) is the percentage of visitors to a website who convert into leads, or the percentage of leads who convert into paying customers. It's a metric that measures how much a website converts visitors into leads.
Not only getting leads but also turning them into customers is essential for the growth of the industry. These figures, which show how many leads you're turning into customers, help shape the strategy needed for the business.

4. Net promoter score (NPS)
The Net Promoter Score (NPS) measures consumer perception of a brand and predicts revenue growth or decline. NPS is one of the most important metrics that monitor customer satisfaction. The credibility of the business increases by customers recommend the products to other people.

5. Sales Growth - Year-End Report
Calculating the growth of your sales each month and year helps you understand the direction of your business.

6.Website Traffic
The number of visitors who come to your website each month helps to understand the effectiveness of SEO. This shows which sources of traffic are attracting the most attention.

7. Return from investment (ROI)

Return on investment, or ROI, is like a GPS for your business's financial decisions. It helps you understand whether you're on the right path to profitability, whether you need to diversify your sources, or whether you need to update your marketing investment.

8. Customer lifetime value (CLV)
It is meant to check the total profit from a customer. This helps in increasing the profitability of the business. Customers who make more profit with CLV may find better ways to stay in business.

9. Employee productivity
Checking employee productivity is crucial to the growth of the business.

10. Customer Attrition
It is necessary to know the loss of customers and analyze its cause. These numbers will help improve customer engagement.