Tracking metrics and key performance indicators (KPIs) is just the first step towards running a data-driven business. 

These indicators let you effectively gauge your sales reps' efforts and your sales process. They’re also essential signposts that guide your business activities. Most Technology Partners depend on KPIs to inform their business’s development decisions, influence customer relations strategies, and direct their sales processes. 

Harnessing the power of KPIs can 

• help your company capitalize on emerging trends faster,
• make more effective use of available resources, 
• keep your customers happy with your services.

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Key Performance Indicators You Should Be Tracking

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Choosing which KPIs to track is best done by considering what performance factors matter most for your company. 

The right KPIs can help your team pinpoint potential performance problems in critical areas such as customer retention and service uptime. 

Which sales metrics should MSPs be tracking? Here are some industry-specific KPIs that let IT owners benchmark their teams’ performance and identify potential improvement areas.

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Key Sales Performance Metrics

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• Monthly recurring revenue
  Some say this is the single most important metric an MSP can measure. If your company makes most of its revenue from recurring sales every month, then this metric will indeed prove especially handy. This number starts the monthly service charges for each client and subtracts the cost of hardware and one-time or infrequently billed deliverables.

• Customer lifetime value
  It measures the average customer's value to your organization over a given period of time. This helps you develop a more cost-effective acquisition strategy for your business.
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• Retention rate
  Use this KPI to inform your sales team of the type of value they can expect from each customer. Your retention rate specifies how many customers you’re holding onto over a period of time.

Further Reading: Building a Scalable Sales Pipeline for Managed Service Providers

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Key Customer Service Performance Metrics

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• Average response time
  Your support team's average response time tells you how long it takes your customers to receive an answer once contact has been made. This can help you identify lagging support processes and make incremental changes.
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• Outstanding issues
  This KPI points out specific parts of your service model where additional staffing, training, or automation are needed. All unresolved issues submitted by your customers are measured by week, month, or quarter to give your team a good idea of what needs improvement.
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• Service utilization
  This metric measures the percentage of your team's billable hours vs. their non-billable hours. However, other types of billable and non-billable events can be measured as well. Use this to boost your efficiency and realign your staff's performance with customer expectations.

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Key Marketing Performance Metrics

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• Cost per lead
  You can leverage this KPI to learn how effective your outreach campaigns work to reel in fresh leads for your sales team. It is calculated as Total marketing spend divided by  Total new leads.
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• Net Promoter score
  This metric is taken from survey results and tells your team just how loyal your customers actually are to your brand. Use net promoter score results to learn what aspects of your service matter most to your customers.

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Aggregating your KPIs in Dashboards

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Each MSP KPI that you choose to use in your organization helps give your team a top-down view of the many important processes at play while adding to your big-picture understanding of overall performance. 

To comfortably view and assess the various KPIs you choose to track, you will need a good KPI dashboard.

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Why do you need a KPI dashboard?

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Keeping up with your company's KPIs involves regularly consulting them and tracking progress. 

For efficient management, you need to do so without jumping from one application window to another. The bulk of your business's most salient KPIs should be visible in a single space. This goes beyond mere convenience, allowing you and your team members to notice correlations and potential issues much more readily without wasting time. 

This is what MSP KPI dashboards do best. These dashboards aggregate the metrics your organization needs the most and displays them in a single location, usually with the addition of custom reporting options based on role and access level.

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Choosing the right platform for KPI analysis

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Maintaining and tracking KPIs can make a clear difference in the way that you run your business. While there are plenty of KPIs that you can take into account, it is essential that you understand what each of the KPIs means and whether they are the right KPIs for your business. Each KPI should have a benchmark based on past data and industry standards. Look for patterns, opportunities, and deviations, so you are in a better position to take the right course of action. 

Zomentum helps you transcend silos of disparate information and centralize business insights across your sales funnel. With our reporting module, you can get insights on pipeline health and take the right action to increase sales and grow revenue goals. You can also benchmark your business growth with peers in the Industry and track revenue goals weekly, monthly, and every quarter. 

Aggregating all the sales-related data in the same platform makes it easier to make decisions that will drive your growth. In the short term, you improve your sales pitches by reviewing data on successful proposals and uncovering the right moves that helped you win deals. In the long run, you keep track of overall business progress by staying updated on long-term revenue goals and previously achieved sales targets. 

Not just sales data, our license reconciliation application keeps track of your customer’s service utilization and your company's invoices. Once activated, it can also send you license usage updates on a regular basis, whether you prefer weekly glimpses or daily details. 

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Try out Zomentum’s revenue management platform and keep track of your revenue goals. Book a Demo.