What are Cost metrics?
Finding the right Cost metrics can be daunting, especially when you're busy working on your day-to-day tasks. This is why we've curated a list of examples for your inspiration.
Copy these examples into your preferred tool, or adopt Tability to ensure you remain accountable.
Find Cost metrics with AI
While we have some examples available, it's likely that you'll have specific scenarios that aren't covered here. You can use our free AI metrics generator below to generate your own strategies.
Examples of Cost metrics and KPIs
Metrics for Cost-Effective SEO Linkbuilding
1. Cost Per Link
The average amount spent to acquire a single backlink. Calculated by dividing total linkbuilding costs by the number of acquired links.
What good looks like for this metric: Between $100 and $500 USD
Ideas to improve this metric- Negotiate better rates with linkbuilding providers
- Utilise content marketing to attract natural links
- Focus on building relationships with niche influencers
- Leverage guest posting opportunities
- Optimise internal resources for linkbuilding efforts
2. Domain Authority of Acquired Links
The average domain authority (DA) of the websites providing backlinks. Higher DA indicates better quality links.
What good looks like for this metric: DA 40+
Ideas to improve this metric- Target websites with high domain authority
- Ensure content is highly relevant and valuable
- Use tools like Moz or Ahrefs to check DA before outreach
- Develop partnerships with authoritative sites
- Create shareable and informative content
3. Link Relevancy
The relevance of the acquired backlinks to your website's niche. Measured by analysing the thematic similarities between the linking site and your own.
What good looks like for this metric: 80%+ relevancy
Ideas to improve this metric- Identify niche-specific websites for linkbuilding
- Create content that aligns with your target niche
- Use outreach messages relevant to specific niches
- Collaborate with niche influencers
- Conduct detailed competitor backlink analysis
4. Referral Traffic
The quantity of traffic directed to your site from backlinks. Measured in terms of sessions or visits originating from referring sites.
What good looks like for this metric: 10% of total traffic
Ideas to improve this metric- Focus on high-traffic websites for backlinks
- Ensure backlinks are placed in high-visibility areas
- Track and analyse referral traffic patterns
- Optimise landing pages to convert referral traffic
- Promote content on social media
5. SERP Ranking Improvement
The impact of linkbuilding on your site's search engine results page (SERP) rankings. Measured by the change in position of target keywords.
What good looks like for this metric: 5+ position improvement
Ideas to improve this metric- Focus on acquiring high-quality backlinks
- Regularly update and optimise content
- Use keywords strategically in anchor texts
- Conduct periodic SERP analysis
- Disavow low-quality or spammy backlinks
Metrics for Business Performance Improvement
1. Revenue Growth Rate
The percentage increase in revenue over a specific period, indicating business expansion.
What good looks like for this metric: Typically 5% to 15% annually for stable industries
Ideas to improve this metric- Increase marketing efforts in high-potential areas
- Launch new products or services
- Improve pricing strategies
- Expand into new markets
- Enhance sales team's efficiency
2. Customer Acquisition Cost (CAC)
The total cost of acquiring a new customer, including marketing and sales expenses divided by the number of new customers.
What good looks like for this metric: $20 to $500 depending on the industry
Ideas to improve this metric- Optimise marketing spend
- Improve targeting in advertising
- Enhance conversion rate on sales funnel
- Leverage referrals and word-of-mouth
- Utilise partnerships and collaborations
3. Customer Retention Rate
The percentage of customers who continue to do business with a company over a given period.
What good looks like for this metric: 75% to 90% depending on the industry
Ideas to improve this metric- Enhance customer service and support
- Implement loyalty programs
- Regularly engage with customers via newsletters or updates
- Gather and act on customer feedback
- Strengthen community or brand connection
4. Net Revenue Retention (NRR)
The percentage of recurring revenue retained from existing customers over a set period, including upsells, cross-sells, and downgrades.
What good looks like for this metric: Above 100% is ideal
Ideas to improve this metric- Upsell and cross-sell to existing customers
- Implement personalised customer experiences
- Provide seamless customer onboarding and training
- Regularly review and address customer needs
- Maintain a competitive offering in the market
5. Profit Margin
The percentage of revenue that exceeds the costs of producing goods or services, indicating profitability.
What good looks like for this metric: 10% to 20% for most industries
Ideas to improve this metric- Reduce production or operational costs
- Streamline supply chain management
- Negotiate better supplier terms
- Focus on higher-margin products or services
- Improve financial management and budgeting
Metrics for Automate Billing Process
1. Process Time Reduction
Measures the reduction in time taken to complete the billing process after automation compared to before.
What good looks like for this metric: 30% reduction in process time
Ideas to improve this metric- Use programmable robotic process automation tools
- Integrate with existing accounting software
- Utilise cloud computing for scalability
- Streamline data entry with OCR technology
- Implement a database for template management
2. Error Rate in Billing
Assesses the percentage of billing errors post-automation compared to manual processes.
What good looks like for this metric: Under 2% error rate
Ideas to improve this metric- Implement validation checks
- Conduct regular training for software use
- Use automated reconciliation methods
- Regularly update software for accuracy
- Use real-time data error alerts
3. Cost Savings
Calculates the reduction in costs due to automating the billing process.
What good looks like for this metric: 20% cost reduction
Ideas to improve this metric- Optimise software licenses
- Reduce paper and printing expenses
- Automate repetitive tasks to reduce overtime
- Conduct a cost-benefit analysis regularly
- Invest in preventive maintenance
4. Employee Productivity
Measures the increase in productivity of employees as a result of reducing manual billing tasks.
What good looks like for this metric: 15% increase in productivity
Ideas to improve this metric- Reallocate time savings to skill development
- Schedule regular feedback sessions
- Use productivity tracking tools
- Encourage a culture of continuous improvement
- Provide resources for professional growth
5. Billing Accuracy Rate
Monitors the percentage of bills processed accurately after automation.
What good looks like for this metric: 98% accuracy rate
Ideas to improve this metric- Ensure comprehensive testing before full deployment
- Regular data audits
- Use machine learning for pattern recognition
- Integrate feedback loops for corrective action
- Keep detailed records of errors for analysis
Metrics for Hotel Performance Goals
1. Overall Experienced F&B
Measurement of guest satisfaction with food and beverage experience on a scale of 1 to 10
What good looks like for this metric: Above 8
Ideas to improve this metric- Collect regular guest feedback
- Enhance menu diversity
- Improve food presentation
- Train staff on customer service
- Conduct quality control checks
2. Brand Audit
Comprehensive review of brand standards and operational adherence resulting in a pass/fail
What good looks like for this metric: PASS
Ideas to improve this metric- Review brand standards regularly
- Conduct internal audits
- Invest in staff training
- Enhance guest interactions
- Implement corrective actions swiftly
3. Breakfast Food Quality
Assessment of guest satisfaction with breakfast food quality on a scale of 1 to 10
What good looks like for this metric: Above 7
Ideas to improve this metric- Source high-quality ingredients
- Update breakfast menu frequently
- Solicit guest feedback
- Train kitchen staff
- Implement regular taste testing
4. Cost per Cover
Average cost incurred per guest dining experience
What good looks like for this metric: Varies; targeted for reduction
Ideas to improve this metric- Analyse pricing models
- Reduce food waste
- Optimise purchasing strategies
- Streamline kitchen processes
- Monitor portion sizes
5. Revenue Growth
Percentage increase in revenue over a specified period
What good looks like for this metric: Industry average is around 5-10%
Ideas to improve this metric- Enhance upselling techniques
- Introduce new services or products
- Improve marketing strategies
- Strengthen customer loyalty programs
- Evaluate pricing strategies
Metrics for Automation in Business Units
1. Process Automation Rate
Percentage of business processes currently automated compared to the total processes possible
What good looks like for this metric: 20-30%
Ideas to improve this metric- Conduct a thorough process audit
- Identify repetitive manual tasks
- Leverage robotic process automation tools
- Invest in staff training for technology adoption
- Establish clear automation goals
2. Time Saved Through Automation
Amount of time saved as a result of implementing automation in business processes
What good looks like for this metric: 10-50% time reduction
Ideas to improve this metric- Analyse current process time expenditures
- Prioritise automation of most time-consuming tasks
- Collaborate with departments to streamline processes
- Continuously measure time savings
- Optimise processes post-automation
3. Cost Reduction Due to Automation
Financial savings accrued from reducing manual labour and errors via automation
What good looks like for this metric: 15-30% cost reduction
Ideas to improve this metric- Assess cost structures before automation
- Focus on high-cost processes for automation
- Use cost-effective automation solutions
- Regularly evaluate cost savings
- Scale successful automation projects
4. Error Reduction Rate
Decrease in errors in business processes as a result of automation
What good looks like for this metric: 30-70% reduction in errors
Ideas to improve this metric- Identify error-prone processes
- Use high-accuracy automation technologies
- Implement continuous error monitoring systems
- Train employees on new automated systems
- Review error rates regularly to refine processes
5. Employee Satisfaction with Automation
Degree to which employees are satisfied with the automation tools and their impact on work
What good looks like for this metric: 70-85% satisfaction rate
Ideas to improve this metric- Conduct employee satisfaction surveys
- Provide comprehensive training sessions
- Encourage employee feedback on automation tools
- Create a support system for employees
- Highlight benefits of automation to employees
Metrics for Facility Maintenance Planning
1. Preventive Maintenance Compliance
Ratio of completed scheduled maintenance tasks to the total scheduled maintenance tasks
What good looks like for this metric: 90% compliance rate
Ideas to improve this metric- Schedule regular training for maintenance staff
- Implement a comprehensive CMMS (Computerized Maintenance Management System)
- Regularly review and update maintenance schedules
- Assign dedicated staff to monitor maintenance compliance
- Conduct regular audits to ensure maintenance completion
2. Average Repair Time
The average time taken to complete repair tasks from the moment they are reported
What good looks like for this metric: 1-3 days depending on urgency
Ideas to improve this metric- Streamline the repair reporting process
- Ensure availability of necessary repair resources
- Conduct regular training on efficient repair techniques
- Assign priority levels to repair requests
- Utilise a CMMS to track repair times
3. Maintenance Cost Per Square Foot
Total maintenance costs divided by the facility's square footage
What good looks like for this metric: $0.50 - $2.00 per square foot annually
Ideas to improve this metric- Regularly review and optimise maintenance budgets
- Implement energy-efficient practices to reduce costs
- Schedule bulk purchases for discounted rates
- Reduce overtime by improving workforce scheduling
- Invest in preventive maintenance to reduce repair costs
4. Equipment Downtime
Total number of hours equipment is unavailable for use due to repairs or maintenance
What good looks like for this metric: Less than 5% of total operational time
Ideas to improve this metric- Implement a routine equipment inspection schedule
- Train staff to detect early signs of equipment failure
- Maintain a spare parts inventory for quick repairs
- Schedule preventive maintenance during off-peak hours
- Utilise condition-monitoring technology
5. First-Time Fix Rate
Percentage of repairs completed on the first visit or attempt
What good looks like for this metric: Over 70% first-time fix rate
Ideas to improve this metric- Ensure technicians are well-trained and qualified
- Provide detailed guidelines for common repairs
- Ensure repair kits are complete and readily available
- Use diagnostics tools to accurately assess problems
- Regularly update repair documentation
Metrics for Monthly Sales and Demand Analysis
1. Demand Orders Growth Rate
Measures the rate at which demand orders increase or decrease compared to previous months or quarters
What good looks like for this metric: 5-10% growth month-over-month
Ideas to improve this metric- Enhance marketing campaigns
- Improve customer service
- Offer discounts or promotions
- Expand product range
- Optimize supply chain efficiency
2. Sales Cost Percentage
The proportion of sales cost relative to total revenue, indicating efficiency in converting costs to sales
What good looks like for this metric: 20-30% of total revenue
Ideas to improve this metric- Negotiate better supplier contracts
- Reduce overhead costs
- Utilise scalable sales channels
- Implement efficient inventory management
- Automate sales operations to reduce expenses
3. Quarterly Revenue Comparison
Compares total revenue earned in each quarter to identify seasonal trends and sales performance
What good looks like for this metric: Consistent growth per quarter
Ideas to improve this metric- Boost marketing during high-sales periods
- Plan product launches in high-demand seasons
- Adjust pricing strategies based on seasonality
- Increase cross-selling activities
- Evaluate and pivot based on quarterly outcomes
4. Order Fulfillment Rate
Percentage of demand orders successfully fulfilled within the expected time
What good looks like for this metric: 95-98% fulfillment rate
Ideas to improve this metric- Streamline the order processing system
- Ensure adequate stock levels
- Enhance supplier relationships
- Implement real-time tracking systems
- Train staff on efficient order handling
5. Monthly Sales Variance
Tracks variations in sales month over month to identify fluctuations and trends
What good looks like for this metric: +/- 5% variance
Ideas to improve this metric- Analyse customer feedback for insights
- Invest in demand forecasting tools
- Strengthen seasonal product offerings
- Balance promotions to smoothen sales dips
- Regularly review and adjust sales strategies
Metrics for Work Performance Evaluation
1. Daily Call Logs
The number of calls made or received in a day logged for performance assessment
What good looks like for this metric: 100 calls per day
Ideas to improve this metric- Set daily or hourly call targets
- Use scheduling tools to manage call times
- Incorporate script templates to shorten call times
- Develop listening skills to enhance understanding
- Regularly review call outcomes for feedback
2. LinkedIn Reach Outs
The number of professional connections and messages sent over LinkedIn to potential clients or partners
What good looks like for this metric: 20 reach outs per day
Ideas to improve this metric- Create personalised messages for each connection
- Leverage mutual connections for introductions
- Join relevant LinkedIn groups for expanded reach
- Post relevant content regularly to increase visibility
- Set aside dedicated time each day for LinkedIn activities
3. Cost Effectiveness
The ratio of incentives offered to overall recruit expenses to ensure cost efficiency
What good looks like for this metric: Incentives below 30% of overall costs
Ideas to improve this metric- Review and adjust incentive plans regularly
- Seek alternatives like recognition programs instead of financial incentives
- Analyse cost-benefit of current incentive structures
- Negotiate better terms with vendors or service providers
- Implement performance-based incentives
4. Task Completion
The percentage of tasks completed on time, indicating productivity
What good looks like for this metric: 95% task completion rate
Ideas to improve this metric- Prioritise tasks using a ranking system
- Break larger tasks into smaller, manageable steps
- Utilise project management tools to track progress
- Set tight deadlines and adhere to them
- Delegate tasks where possible to ensure efficiency
5. Onboarded Recruits
The number of new hires successfully onboarded within a specified time frame
What good looks like for this metric: 5 new recruits onboarded per month
Ideas to improve this metric- Streamline onboarding documentation processes
- Provide detailed training sessions for recruits
- Ensure all team members are prepared to support new hires
- Offer feedback sessions to address recruit difficulties
- Regularly update onboarding procedures
Metrics for Measuring Image Performance
1. Latency
The time taken for the image to load from the server to the user's end
What good looks like for this metric: Typical benchmark value is under 100ms
Ideas to improve this metric- Optimize image sizes
- Use a Content Delivery Network (CDN)
- Implement lazy loading
- Enable browser caching
- Minimize HTTP requests
2. Cost Per Image Delivered
The total cost incurred for delivering each image to the user
What good looks like for this metric: A typical benchmark is under $0.01 per image
Ideas to improve this metric- Choose cost-effective hosting solutions
- Compress images to reduce size
- Utilise efficient caching strategies
- Optimise server infrastructure
- Leverage cost-effective CDNs
3. Image Load Time
The amount of time it takes for an image to be fully accessible on a user's screen
What good looks like for this metric: An ideal benchmark is under 2 seconds
Ideas to improve this metric- Reduce image dimensions
- Utilise responsive images
- Implement file format that loads faster
- Use asynchronous loading
- Optimise server response times
4. Scalability
The ability to handle increasing load of image delivery without performance degradation
What good looks like for this metric: Should smoothly handle a 100% increase in traffic
Ideas to improve this metric- Implement auto-scaling infrastructure
- Utilise robust load balancing solutions
- Optimise image storage options
- Conduct regular stress testing
- Use scalable databases
5. User Satisfaction
Measures how satisfied users are with image load times and quality
What good looks like for this metric: Typical satisfaction rate above 80%
Ideas to improve this metric- Conduct user feedback surveys
- Analyse user interaction data
- Regularly update images for relevance
- Ensure high-resolution options as needed
- Implement faster image formats
Metrics for Operations Efficiency
1. Operational Cost Ratio
The ratio of operational costs to total revenue, used to determine the cost-effectiveness of operations
What good looks like for this metric: 25-35%
Ideas to improve this metric- Automate manual processes
- Negotiate better supplier contracts
- Implement lean management techniques
- Regularly review and adjust budgets
- Reduce waste and inefficiencies
2. Average Order Fulfilment Time
The average time taken from receiving an order to its delivery, indicating the efficiency of the fulfilment process
What good looks like for this metric: 24-48 hours
Ideas to improve this metric- Streamline warehouse processes
- Enhance inventory management
- Use reliable shipping partners
- Adopt real-time tracking systems
- Train staff for faster processing
3. First Pass Yield
The percentage of products manufactured correctly without any need for rework, showing the efficiency of the production process
What good looks like for this metric: 95-99%
Ideas to improve this metric- Implement quality control measures
- Use advanced manufacturing techniques
- Provide ongoing employee training
- Conduct regular equipment maintenance
- Analyse and address defect trends
4. Inventory Turnover Ratio
The ratio of cost of goods sold to average inventory, indicating how efficiently inventory is managed
What good looks like for this metric: 6-12 times per year
Ideas to improve this metric- Optimise inventory levels
- Improve demand forecasting
- Enhance supplier relationships
- Implement just-in-time inventory systems
- Increase marketing and sales efforts
5. Customer Satisfaction Score (CSAT)
A measure of customer satisfaction with the operational aspects of the company, usually gathered through surveys
What good looks like for this metric: 80-90%
Ideas to improve this metric- Improve customer service training
- Collect and act on customer feedback
- Enhance product quality
- Ensure timely delivery
- Streamline return processes
Metrics for API Partnership Status
1. Number of Active Partners
The total count of partners currently integrated and actively using the API
What good looks like for this metric: 75-80% of total partners
Ideas to improve this metric- Strengthen partner support and engagement
- Implement regular check-ins
- Develop partner loyalty programs
- Enhance technical support resources
- Utilise feedback for improvements
2. Churn Rate
Percentage of partners that stop using the API over a set period
What good looks like for this metric: Below 5% annually
Ideas to improve this metric- Identify reasons for churn
- Improve troubleshooting and issue resolution
- Regularly update partners about new features
- Provide personalised support
- Analyse competition to improve offerings
3. Number of Potential Partners
The count of partners identified as potential candidates for API integration
What good looks like for this metric: Increase by 15% annually
Ideas to improve this metric- Expand target market research
- Enhance marketing strategies
- Attend industry networking events
- Offer incentives for referrals
- Create tailored outreach campaigns
4. Go-Live Success Rate
Percentage of potential partners who successfully go live within the expected timeframe
What good looks like for this metric: 90% successful go-live within agreed timeline
Ideas to improve this metric- Streamline onboarding process
- Enhance technical onboarding support
- Break down integration process into clear steps
- Use project management tools for tracking
- Conduct pre-launch reviews and tests
5. Time to Market
Average number of days taken for a partner to go from initial contact to full integration
What good looks like for this metric: 45 days or less
Ideas to improve this metric- Improve the efficiency of the approval process
- Offer comprehensive technical documentation
- Accelerate internal decision-making
- Implement faster testing cycles
- Provide dedicated onboarding facilitators
Metrics for Business Development Performance
1. Revenue Growth Rate
Percentage increase in revenue over a specified period, calculated as (Current Period Revenue - Previous Period Revenue) / Previous Period Revenue * 100
What good looks like for this metric: 5-10% annually for stable growth
Ideas to improve this metric- Enhance sales team training
- Expand product/service offerings
- Improve market analysis for new opportunities
- Increase customer referrals and testimonials
- Implement targeted marketing strategies
2. Customer Acquisition Cost (CAC)
Total cost of acquiring a new customer, calculated as total sales and marketing expense / number of new customers acquired
What good looks like for this metric: Typically $1 to $300 per customer
Ideas to improve this metric- Optimize marketing channels for efficiency
- Improve targeting of ideal customer profiles
- Enhance website conversion rates
- Leverage partnerships and collaborations
- Increase use of digital marketing tools
3. Customer Retention Rate
Percentage of customers retained over a given period, calculated as ((End of Period Customers - New Customers) / Start of Period Customers) * 100
What good looks like for this metric: 70-90% depending on the industry
Ideas to improve this metric- Improve product/service quality
- Enhance customer support experience
- Develop customer loyalty programmes
- Regularly gather and act on customer feedback
- Create engaging communication and content
4. Net Revenue Retention (NRR)
Percentage of recurring revenue retained from existing customers, including upgrades/downgrades, calculated as (Starting Revenue + Expansion Revenue - Churn) / Starting Revenue * 100
What good looks like for this metric: Over 100% indicates good growth
Ideas to improve this metric- Upsell existing customers to higher-tier plans
- Introduce new features to drive value
- Regularly communicate new offerings to customers
- Reduce churn by addressing common concerns
- Conduct regular account reviews with key clients
5. Profit Margin
Percentage of revenue that exceeds total costs, calculated as (Net Income / Revenue) * 100
What good looks like for this metric: 10-20% is common in the industry
Ideas to improve this metric- Reduce operational and production costs
- Negotiate better supplier contracts
- Optimize pricing strategies
- Increase operational efficiency
- Enhance financial management and reporting
Tracking your Cost metrics
Having a plan is one thing, sticking to it is another.
Don't fall into the set-and-forget trap. It is important to adopt a weekly check-in process to keep your strategy agile – otherwise this is nothing more than a reporting exercise.
A tool like Tability can also help you by combining AI and goal-setting to keep you on track.
Tability's check-ins will save you hours and increase transparencyMore metrics recently published
We have more examples to help you below.
The best metrics for Recruitment Performance Review- The best metrics for Process Improvement
- The best metrics for Community Care Impact
- The best metrics for Quality Assurance Performance
- The best metrics for Organic Reach for Social Media
- The best metrics for Measuring Image Performance
Planning resources
OKRs are a great way to translate strategies into measurable goals. Here are a list of resources to help you adopt the OKR framework:
- To learn: What are OKRs? The complete 2024 guide
- Blog posts: ODT Blog
- Success metrics: KPIs examples