In business, it is essential to identify the key drivers that play a crucial role in boosting higher profit and making your business more sustainable. Some factors play a vital part in business success, so you have to monitor them to understand how they impact your strategies.
Read on to learn what these performance drivers are, and their role is in profit generation.
What are business performance drivers?
Business Performance Drivers are composed of internal and external factors that have a huge impact on a business. There are a lot of key drivers for business and it is important to focus on those that are measurable, actionable, and reflect the performance and growth of your business.
Here are some examples of key business performance drivers that you can monitor on your end.
Number of inquiries/sales
How many inquiries or leads does your business acquire? This data serves as indicators of peaks and off-peaks in your business sales. It is also important to know where the inquiries came from to know the impact of your marketing strategies, identify the products that sell the most, and how well your priority products are doing.
One of the key business performance drivers that you need to track regularly is your costs or expenses. By closely monitoring the factors that cause an increase or decrease in costs, you will be able to identify your true gross profit, your variable expenses, the ones that bring in income as well as those that do not. Once expenses are identified, it will be easier to identify problems and know the corrective actions that must be taken to keep your margins from falling.
Proper stock control is one of the ways to keep happy customers. It impacts your turnaround time and allows efficient use of capital resources. It will prevent overstocking and understocking. Since it ensures product availability, it also protects you from spending on those that may not sell.
Business Performance Drivers for Benchmarking
Your key drivers can propel business success. It can provide you with historical data that you can use to benchmark and establish important patterns for your business, and give you the figures you need to identify potential problems as well as opportunities.
There are business metrics that you cannot overlook, especially if they impact the success of your business. These metrics vary from business to business. Know the key business drivers that matter to you so you can engage more audiences and explore the opportunities for growth that come with them.
Know where you stand in your digital mediascape and identify key factors that directly impact your industry. Media Meter supports businesses with a range of media monitoring services. Send us a message now.