- Software Project Success Metrics Examples
- Software Process Metrics Examples
- Software Engineering Metrics Examples
- Software Development Metrics Examples
Software Metrics and Function Point Information. Function Point Counting can be a real art. By having examples and articles you can begin to learn the Art of Function Point Counting and Analysis. IEEE software metrics standards.! Types of software metrics! When to use them! Limitations to consider when using metrics to evaluate software systems! In depth look at DSQI and Software package metrics! Example applying BSQI to a real project! An in depth look at research that has been done on software metrics! Fault prediction models. Jan 13, 2012 Software Metrics An example of “Measures, Measurements, Metrics, Indicators” ( contd. ) And let’s assume, all together they found about 60 errors. So, using all those measures mentioned above we can compute a Metric, which could be ‘Errors found. The Fundamental Software Testing Metrics: Software testing metrics, which are also known as software test measurement, indicates the extent, amount, dimension, capacity, as well as the rise of various attributes of a software process and tries to improve its effectiveness and efficiency imminently. What Are Software Metrics and How Can You Track Them? Learn how to track clear, quantifiable software metrics in line with your goals, and the performance benefits you'll reap.
HOW DO YOU measure your company’s performance?
The way not to do it is by following your gut feeling. Running a successful business requires a thorough analysis on the work, sales, and financial results. And it can’t be done without tracking relevant business metrics.
Business metrics, also called KPIs (key performance indicators) display a measurable value that shows the progress of a company’s business goals.
They’re usually tracked on a KPI dashboard. Business metrics indicate whether a company has achieved its goals in a planned time frame.
There are hundreds of different key performance indicator examples, but there’s no use in measuring all of these. Depending on your business goals, you should track business metrics that really show how your business is doing.
Tracking irrelevant KPIs will distract you from focusing on the things that truly matter. This way, you’ll end up stressing about the numbers that have no actual impact on your company’s development. So it is highly important that you not only track business metrics but also choose the right ones to perceive.
Read On:What is a KPI? (The Complete Guide)
Examples of business metrics:
- Sales Revenue
- Net Profit Margin
- Gross Margin
- MRR (Monthly Recurring Revenue)
- Net Promoter Score
Up next, we’ll explore 12 popular business metrics that reflect on your company’s performance and indicate growth or decline.
1. Sales Revenue
We chose to put this metric first as it can tell a lot of things about your company. Month-over-month sales results show whether people are interested in buying your product/service, are your marketing efforts paying off, are you still in the competition, and much more.
When evaluating your sales revenue and setting goals, it is important to remember that sales results are affected by multiple other factors. The person tracking the sales KPIs should also be aware of recent changes in the market, previous marketing campaigns, competitive actions, etc.
How to measure: Teenage mutant ninja turtles 1990 free online games.
Sales revenue is calculated by summing up all the income from client purchases, minus the cost associated with returned or undeliverable products.
Read on:Business Management Trends You Should Quit in 2017
How to improve:
The most obvious way to grow your sales revenue is to increase the number of sales. This can be done by expanding your marketing endeavours, hiring new salespeople, or making discount offers that are hard to resist. Growing your sales revenue should be a long-term strategy rather than a quick (and temporary) boost in sales.
2. Net Profit Margin
This business metric indicates how efficient your company is at generating profit compared to its revenue. Basically, this number tells you how big a sum of? each dollar earned translates into profits.
The Net Profit Margin is a good way to predict long-term business growth, and see whether your income exceeds the costs of running the business.
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How to measure:
Calculate your monthly revenue and reduce all the sales expenses.
How to improve:
You can improve your company’s Net Profit Margin by increasing your revenue.
You can improve your company’s Net Profit Margin by increasing your revenue.
The easiest way to do this is by raising the price of your products/services and selling more. Another method is to lower your sales and production costs while keeping up with the competition. Both of these tactics require thorough market research and long-term business strategy, and can’t be done overnight.
3. Gross Margin
The higher your Gross Margin, the more your company earns by each sales dollar. You’ll be able to invest it in other operations. This metric is especially important for starting companies as it reflects on improved processes and production. It’s like the equivalent of your company’s productivity, translated into numbers.
How to measure:
The Gross Margin equals your company’s total sales revenue minus its cost of goods sold, divided by the total sales revenue.
The Gross Margin equals your company’s total sales revenue minus its cost of goods sold, divided by the total sales revenue.
Alright, let’s put it into an equation.
Gross Margin = (total sales revenue – cost of goods sold) / total sales revenue
How to improve:
Gross Margin can be improved by making both your sales and production processes more efficient.
Gross Margin can be improved by making both your sales and production processes more efficient.
Read more: This 1-hour Weekly Work Audit Will Skyrocket Your Productivity
4. Sales Growth Year-to-date
Who wouldn’t love to see their company grow month-over-month? But sometimes, sales are highly dependent on the season and the mood of the customers. Sales Growth Year-to-date indicates the pace at which your company’s sales revenue is increasing or decreasing.
Monitor your sales growth over various time periods – monthly, yearly, and long-term metrics will give you a better understanding of where your company stands. Make it a goal to accelerate your sales growth every month, or at least keep it at the same percentage, month over month.
How to measure:
Check your monthly sales revenue and the number of new deals.
Check your monthly sales revenue and the number of new deals.
If your sales team work in multiple teams, you can also track this business metric by every team. This way, you’ll get a better overview of each sales department’s achievements.
How to improve:
Similarly to Sales Revenue metric, this KPI can be increased by investing more resources in your marketing and sales activities. Sales Growth can also be boosted by positive media coverage or a new product launch.
Similarly to Sales Revenue metric, this KPI can be increased by investing more resources in your marketing and sales activities. Sales Growth can also be boosted by positive media coverage or a new product launch.
5. Cost of Customer Acquisition
Have you ever thought how many small things contribute to acquiring a customer?
The Cost of Customer Acquisition (CAC) is calculated by dividing all the costs spent on acquiring new customers (marketing expenses) by the number of new clients acquired in a specific time frame. If you spent $8000 on marketing in September and acquired 40 customers in this time frame, your CAC is $200.
The Cost of Customer Acquisition should always be measured together with the Customer Lifetime Value. If a new client is worth the average of $1400 to you, acquiring them for $200 is a reasonable deal.
How to calculate:
The easiest way to calculate the average Customer Lifetime Value is to multiply the average value of a sale by the number of repeat transactions and the average retention time in months for a typical customer.
The easiest way to calculate the average Customer Lifetime Value is to multiply the average value of a sale by the number of repeat transactions and the average retention time in months for a typical customer.
Calculating the CLV depends on your product specifics – are you selling on a monthly basis, is it a big one-time transaction, or do people return to make repeat purchases? Here’s a great infographic by Kissmetrics, explaining the CLV in-depth.
How to improve:
Evaluating the Customer Lifetime Value of various client segments can help you understand which segments bring in a higher profit. Let go of clients who are decreasing your net profit and difficult to convert, and focus on the most rewarding audience.
Evaluating the Customer Lifetime Value of various client segments can help you understand which segments bring in a higher profit. Let go of clients who are decreasing your net profit and difficult to convert, and focus on the most rewarding audience.
6. Customer loyalty and retention
Having loyal customers is beneficial in many ways. It helps to grow your sales, and spread the word about your product. The Retention Rate shows the number of clients who keep using your product over an extended time period and make repeat purchases.
How to measure:
Here’s a quick formula for calculating the Retention Rate
Retention Rate = ((CE-CN)/CS)) X 100
CE = number of customers at the end of a certain time period (1 year, for example)
CN = number of new customers acquired during the same time period
CS = number of clients at the start of the time period
CN = number of new customers acquired during the same time period
CS = number of clients at the start of the time period
How to improve:
The customer loyalty can be increased over time by providing excellent customer care, and delivering high-quality products.
The customer loyalty can be increased over time by providing excellent customer care, and delivering high-quality products.
7. Net Promoter Score
Net Promoter Score reflects on the quality of your product and the level of customer satisfaction. It shows how many people are likely to recommend your product/service to a friend.
According to Net Promoter Network, there are three levels of customer advocacy:
- Promoters (score 9-10) are loyal enthusiasts who praise your company to others and drive your sales
- Passives (score 7-8) are satisfied but unenthusiastic customers who leave when they see a better offer.
- Detractors (score 0-6) are disappointed customers who spread negative information about your company and can damage your brand’s image.
How to measure:
This marketing metric can be measured on a ten-point scale by conducting customer surveys and interviews. The easiest way is to ask this question in the follow-up email of a product order or new subscription. It takes some time to gather data and evaluate the results but it gives you many insights into how to improve your product/service.
This marketing metric can be measured on a ten-point scale by conducting customer surveys and interviews. The easiest way is to ask this question in the follow-up email of a product order or new subscription. It takes some time to gather data and evaluate the results but it gives you many insights into how to improve your product/service.
To calculate the Net Promoter Score, subtract the percentage of Detractors from the percentage of Promoters.
How to improve:
Provide the very best customer service and deliver high-quality service. Offer benefits and information that your customers didn’t even expect to receive to make their user experience as good as possible.
8. Qualified leads per month
As you company grows, you’ll be able to invest more resources in marketing and sales. Soon, you’re going to have hundreds of new leads each month. But not all of these leads have the potential to become a customer.
That’s why you need to measure the number of qualified leads per month.
This business metric shows whether you’re targeting the right market with the highest potential of attracting new customers. If the number of qualified leads is declining, it means you need to re-evaluate your marketing campaigns and sales strategy.
How to measure:
You can categorize your new leads into three distinct groups:
You can categorize your new leads into three distinct groups:
- Marketing qualified leads (MQL) – leads that are qualified by the marketing team on the premises that they match your potential lead requirements (size of the company, expectations, etc.)
- Sales-accepted leads (SAL) – leads that the marketing team has forwarded to the sales team, and are waiting for the final approval before the sales process begins
- Sales qualified leads (SQL) – leads qualified by the sales team that have the highest potential of becoming paying customers
How to improve:
Instead of targeting millions of people, focus on a niche audience that has the highest probability of being interested in your products.
Instead of targeting millions of people, focus on a niche audience that has the highest probability of being interested in your products.
Read more:TOP 8 Proven Tactics to Boost Your Customer Relationships
9. Lead-to-Client Conversion Rate
Leads do not turn into customers on their own. They need to be contacted by your sales team who will convert them into paying clients.
Install dosbox windows 10. The Lead-to-Conversion business metric reflects on your sales team’s performance. Moreover, it might indicate the quality of your product – if leads fail to convert, they might be unimpressed with what you’re offering.
How to measure:
To calculate the Lead-to-Conversion KPI, divide the number of monthly new leads with the number of monthly new customers.
How to improve:
To improve this metric, you first need to find the cause behind the low sales conversion rates. It might be a poorly-performing sales team, but it might also be a bad product-market fit. Here’s a great article by ConversionXL on how to improve your conversion rate.
To improve this metric, you first need to find the cause behind the low sales conversion rates. It might be a poorly-performing sales team, but it might also be a bad product-market fit. Here’s a great article by ConversionXL on how to improve your conversion rate.
Read on:Business Management Trends You Should Quit in 2017
10. Monthly website traffic
One of the best indicators of your company’s reputation in the monthly website traffic. The more people hear about your product, the more likely they are to check out your web page.
See the complete list of over 35 digital marketing KPIs.
How to measure:
Use a free marketing tool such as Google Analytics to track your monthly website traffic as well as the traffic sources, to understand how people find your site.
How to improve:
The easiest way to do it is to increase the advertising budget. But there are many free and more efficient tactics: getting free press coverage, sharing valuable advice on social media channels, betting on search engine traffic with SEO, etc.
Read on:All-time Best Hacks for Business Optimization and Analysis
11. Met and Overdue Milestones
Every business has goals and milestones. Maybe you’d like to double your sales revenue by the next quarter, or maybe you’re planning a new product launch. All of these big goals are actually projects that can be divided into milestones to mark their progress.
Read on: Business Budgeting Software
Checking the number of met and overdue milestones gives you a quick overview of your team’s capacity. If you constantly fail to meet the milestones, it might be time to hire some extra hands or align your ambitions with reality.
How to measure:
Set up various project milestones and keep track of whether they’re met in time.
Read on:Business Management Software
How to improve:
How to improve:
If your company’s team constantly crosses deadlines, it’s should raise a red flag. There are three reasons to look out for: unreasonable expectations, insufficient resources, and low productivity. After you’ve discovered the problem, focus your energy on solving it. Moreover, ensure that you’ve set the right priorities.
Improve your work productivity with a business management software. See the complete list of 30+ Team collaboration tools.
12. Employee Happiness
Happy employees = productive employees. New research suggests that we work 12% more effectively when we’re happy at work.
Keeping the satisfaction level high leads to the long-term commitment to the team and company. That’s why it’s important to regularly check whether your employees are happy and feel rewarded for their work.
How to measure:
Conduct team surveys or use an HR tool to collect quick feedback on the teamwork and personal satisfaction levels.
Conduct team surveys or use an HR tool to collect quick feedback on the teamwork and personal satisfaction levels.
How to improve:
The fastest solution to increased employee satisfaction is introducing some new perks, e.g. free coffee in the office. But the long-term solution to motivating your team is being a good example, and practicing what you preach. Companies with a strong sense of mission project it on their team, making everyone more motivated.
Quick recap
While there are many more important business metrics that companies can and should measure, these 12 will give you a quick overview of the current state of your business.
- Sales Revenue
- Net Profit Margin
- Gross Margin
- Sales Growth Year-to-date
- Cost of Customer Acquisition
- Customer Loyalty and Retention
- Net Promoter Score
- Qualified Leads Per Month
- Lead to Client Conversion Rate
- Monthly Website Traffic
- Met and Overdue Milestones
- Employee Happiness
Which business metrics do you measure and what are the best tools for doing it? Share your thoughts in the comments section!
This blog provides 14 important HR metrics examples. HR metrics are indicators that enable HR to track and measure performance on different aspects and ultimately predict the future. However, not all HR metrics are created equal. In this blog, we will provide some of the most valuable HR metrics examples.
Even though this list provides some essential HR metrics, you might come up with a great number 15! You are welcome to suggest additional HR metrics in the comments below.
HR metrics examples in recruitment
1. Time to hire (time in days)
An important metric for recruitment is the ‘time to hire’. This is the number of days between a position opening up and a candidate signing the job contract. It’s an excellent way to measure the efficiency of the recruitment process and provides insight into the difficulty of filling a certain job position.
An important metric for recruitment is the ‘time to hire’. This is the number of days between a position opening up and a candidate signing the job contract. It’s an excellent way to measure the efficiency of the recruitment process and provides insight into the difficulty of filling a certain job position.
Software Project Success Metrics Examples
There’s also the time to fill metric. This metric takes the same starting point but takes the date the candidate starts working as the end point.
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2. Cost per hire (total cost of hiring/the number of new hires)
Like the time to hire, the ‘cost per hire’ metric shows how much it costs the company to hire new employees. This also serves as an indicator of the efficiency of the recruitment process.
Like the time to hire, the ‘cost per hire’ metric shows how much it costs the company to hire new employees. This also serves as an indicator of the efficiency of the recruitment process.
3. Early turnover (percentage of recruits leaving in the first year)
This is arguably the most important metric to determine hiring success in a company.
This early leaver metric indicates whether there is a mismatch between the person and the company or between the person and his/her position. Early turnover is also very expensive. It usually takes 6 to 12 months before employees have fully learned the ropes and reach their ‘Optimum Productivity Level’. According to a 2014 Oxford Economics report, the lost output cost over this period averages £30,000 ($43,700) for new hires.
This is arguably the most important metric to determine hiring success in a company.
This early leaver metric indicates whether there is a mismatch between the person and the company or between the person and his/her position. Early turnover is also very expensive. It usually takes 6 to 12 months before employees have fully learned the ropes and reach their ‘Optimum Productivity Level’. According to a 2014 Oxford Economics report, the lost output cost over this period averages £30,000 ($43,700) for new hires.
4. Time since last promotion (avg time in months since last internal promotion)
This rather straightforward metric is useful in explaining why your high potentials leave.
This rather straightforward metric is useful in explaining why your high potentials leave.
HR metrics examples related to revenue
5. Revenue per employee (revenue/total number of employees)
This metric shows the efficiency of the organization as a whole. The ‘revenue per employee’ metric is an indicator of the quality of hired employees. Check this Business Insider article to view how the top 12 tech companies in the world score on this metric.
This metric shows the efficiency of the organization as a whole. The ‘revenue per employee’ metric is an indicator of the quality of hired employees. Check this Business Insider article to view how the top 12 tech companies in the world score on this metric.
6. Performance and potential (the 9-box grid)
The 9-box grid appears when measuring and mapping both an individual’s performance and potential in three levels. This model shows which employees are underperformers, valued specialists, emerging potentials or top talents. This metrics is great for differentiating between, for example, wanted and unwanted turnover.
The 9-box grid appears when measuring and mapping both an individual’s performance and potential in three levels. This model shows which employees are underperformers, valued specialists, emerging potentials or top talents. This metrics is great for differentiating between, for example, wanted and unwanted turnover.
In another article, we wrote about the qualitative and quantitative ways to measure employee performance. Metrics include Net Promoter Score, management by objectives, number of errors, 360-degree feedback, forced ranking, etc.
7. Billable hours per employee
This is the most concrete example of a performance measure, and it is especially relevant in professional service firms (e.g. law and consultancy firms). Relating this kind of performance to employee engagement or other input metrics makes for an interesting analysis. Benchmarking this metrics between different departments and managers/partners can also provide valuable insights.
This is the most concrete example of a performance measure, and it is especially relevant in professional service firms (e.g. law and consultancy firms). Relating this kind of performance to employee engagement or other input metrics makes for an interesting analysis. Benchmarking this metrics between different departments and managers/partners can also provide valuable insights.
8. Engagement rating
An engaged workforce is a productive workforce. Engagement might be the most important ‘soft’ HR outcome. People who like their job and who are proud of their company are generally more engaged, even if the work environment is stressful and pressure is high. Engaged employees perform better and are more likely to perceive stress as an exciting challenge, not as a burden. Additionally, team engagement is an important metric for a team manager’s success.
An engaged workforce is a productive workforce. Engagement might be the most important ‘soft’ HR outcome. People who like their job and who are proud of their company are generally more engaged, even if the work environment is stressful and pressure is high. Engaged employees perform better and are more likely to perceive stress as an exciting challenge, not as a burden. Additionally, team engagement is an important metric for a team manager’s success.
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Other HR metrics examples
9. Cost of HR per employee (e.g. $ 600)
This metric shows the cost efficiency of HR expressed in dollars.
This metric shows the cost efficiency of HR expressed in dollars.
10. Ratio of HR professionals to employees (e.g. 1:60)
Another measure that shows HR’s cost efficiency. An organization with fully developed analytical capabilities should be able to have a smaller number of HR professionals do more.
Another measure that shows HR’s cost efficiency. An organization with fully developed analytical capabilities should be able to have a smaller number of HR professionals do more.
11. Ratio of HR business partners per employee (e.g. 1:80)
A similar metric to the previous one. Again, a set of highly developed analytics capabilities will enable HR to measure and predict the impact of HR policies. This will enable HR to be more efficient and reduce the number of business partners.
A similar metric to the previous one. Again, a set of highly developed analytics capabilities will enable HR to measure and predict the impact of HR policies. This will enable HR to be more efficient and reduce the number of business partners.
12. Turnover (number of leavers/total population in the organization)
This metric shows how many workers leave the company in a given year. When combined with, for instance, a performance metric, the ‘turnover’ metric can track the difference in attrition in high and low performers. Preferably you would like to see low performers leave and high performers stay. This metric also provides HR business partners with a great amount of information about the departments and functions in which employees feel at home, and where in the organization they do not want to work. Additionally, attrition could be a key metric in measuring a manager’s success.
This metric shows how many workers leave the company in a given year. When combined with, for instance, a performance metric, the ‘turnover’ metric can track the difference in attrition in high and low performers. Preferably you would like to see low performers leave and high performers stay. This metric also provides HR business partners with a great amount of information about the departments and functions in which employees feel at home, and where in the organization they do not want to work. Additionally, attrition could be a key metric in measuring a manager’s success.
13. Effectiveness of HR software
This is a more complex metric. Effectiveness of, for instance, learning and development software are measured in the number of active users, average time on the platform, session length, total time on platform per user per month, screen flow, and software retention. These metrics enable HR to determine what works for the employees and what does not.
This is a more complex metric. Effectiveness of, for instance, learning and development software are measured in the number of active users, average time on the platform, session length, total time on platform per user per month, screen flow, and software retention. These metrics enable HR to determine what works for the employees and what does not.
14. Absenteeism (absence percentage)
Like turnover, absenteeism is also a strong indicator of dissatisfaction and a predictor of turnover. This metric can give information to prevent this kind of leave, as long-term absence can be very costly. Again, differences between individual managers and departments are very interesting indicators of (potential) problems and bottlenecks.
Like turnover, absenteeism is also a strong indicator of dissatisfaction and a predictor of turnover. This metric can give information to prevent this kind of leave, as long-term absence can be very costly. Again, differences between individual managers and departments are very interesting indicators of (potential) problems and bottlenecks.
As you can see there are a lot of different examples of HR metrics. While some metrics are easier to implement than others, all of them provide insights into the workforce and HR. Combining these insights will prove vital for making substantiated decisions with proven impact. In a recent blog, we wrote about HR metrics related to employee retention, absenteeism, and learning & development effectiveness.
Because of the interest in this topic, we decided to create a course on strategic HR metrics. Check it out!
So, what are HR metrics exactly?
Software Process Metrics Examples
Before you start to work with HR metrics, it’s important to make sure you understand how metrics can work for you. What are HR metrics?
Human Resource metrics are measurements that help you to track key areas in HR data. The most important areas are listed below. In this list of HR metrics, we included the key HR metrics examples associated with those areas.
Software Engineering Metrics Examples
- Organizational performance
- Turnover percentages
- % of regretted loss
- Statistics on why personnel is leaving
- Absence percentages and behavior
- HR operations
- HR efficiency (e.g. time to resolving HR self-service tickets)
- HR effectiveness (e.g. perception of HR service quality)
- Process optimization
Process optimization helps to analyze how we do what we do in Human Resource Management. The HR metrics and analytics in this area focus on changes in HR efficiency and effectiveness over time. These HR metrics and analytics are then used to re-engineer and reinvent what is happening in HR. This helps to optimize the Human Resource delivery process. Process optimization metrics are next-level. They are still very rare in modern organizations as they require a very high level of both data maturity and analytics maturity.
- Organizational performance
Software Development Metrics Examples
To learn more about HR metrics and how to implement them in your organization, check out our strategic HR metrics course.