Get Tability: OKRs that don't suck | Learn more →

5 examples of Cost metrics and KPIs

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 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 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 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

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 Insights DashboardTability's check-ins will save you hours and increase transparency

More metrics recently published

We have more examples to help you below.

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:

Table of contents