What are Profitability metrics? Crafting the perfect Profitability metrics can feel overwhelming, particularly when you're juggling daily responsibilities. That's why we've put together a collection of examples to spark your inspiration.
Transfer these examples to your app of choice, or opt for Tability to help keep you on track.
Find Profitability 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 Profitability metrics and KPIs 1. Return on Investment (ROI) Measures the profitability of an investment relative to its cost, calculated as net profit divided by the cost of investment.
What good looks like for this metric: 10-15% annual ROI
Ideas to improve this metric Diversify investment portfolio Reduce operational costs Increase sales through marketing Optimise product pricing Enhance customer retention 2. Product Development Timeliness Tracks whether the development projects are completed within the projected timelines.
What good looks like for this metric: 80-90% projects on time
Ideas to improve this metric Implement project management software Set clear deadlines Enhance cross-department communication Allocate resources effectively Conduct regular progress reviews 3. Market Share Growth Indicates the increase or decrease in the company's product market share within the industry.
What good looks like for this metric: 1-2% annual growth
Ideas to improve this metric Explore new market segments Enhance marketing strategies Improve product quality Strengthen brand loyalty Collaborate with strategic partners 4. Customer Acquisition Cost (CAC) The cost associated with acquiring a new customer, calculated by dividing total acquisition expenses by the number of new customers.
What good looks like for this metric: $300-$500 per customer
Ideas to improve this metric Optimise marketing spend Utilise lower-cost marketing channels Improve conversion rates Leverage customer referrals Enhance customer targeting 5. Net Promoter Score (NPS) Measures customer loyalty by asking how likely they are to recommend the product to others.
What good looks like for this metric: 50-70 NPS score
Ideas to improve this metric Improve customer service Gather customer feedback Enhance product features Provide customer incentives Develop customer engagement strategies
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1. Return on Investment (ROI) Measures the profitability of a strategic program by comparing the returns to the costs. It is calculated as (Net Profit / Cost of Investment) * 100.
What good looks like for this metric: Typically, a good ROI is 15% or more
Ideas to improve this metric Enhance profitability through cost control Increase revenue from the program Extend program's lifecycle Improve marketing efforts Optimize resource allocation 2. Net Promoter Score (NPS) Evaluates customer or stakeholder satisfaction and loyalty by asking how likely they are to recommend the program to others. Scored from -100 to 100.
What good looks like for this metric: Scores above 50 are considered excellent
Ideas to improve this metric Improve customer service and support Enhance program quality Solicit and act on feedback Create engagement incentives Improve communication clarity 3. Stakeholder Engagement Measures the level of stakeholder participation and involvement in the strategic program.
What good looks like for this metric: Varies; should aim for more than 70% active engagement
Ideas to improve this metric Increase communication frequency Include stakeholders in decision-making Provide regular updates Use varied engagement channels Host interactive workshops 4. Cost-Benefit Analysis Compares the costs and benefits of the program to determine value. A higher ratio indicates a more beneficial program.
What good looks like for this metric: A ratio above 1 signifies positive value
Ideas to improve this metric Really evaluate benefits accurately Regularly review costs Negotiate supplier agreements Streamline operations Assess risk mitigation strategies 5. Goal Achievement Rate Measures the percentage of strategic targets met within a specific timeframe. Calculated as (Achieved Goals / Total Goals) * 100.
What good looks like for this metric: 70% or higher is desirable
Ideas to improve this metric Set realistic targets Continuously monitor progress Adjust strategies as needed Encourage team collaboration Provide necessary resources
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Tracking your Profitability metrics Having a plan is one thing, sticking to it is another.
Setting good strategies is only the first challenge. The hard part is to avoid distractions and make sure that you commit to the plan. A simple weekly ritual will greatly increase the chances of success.
A tool like Tability can also help you by combining AI and goal-setting to keep you on track.
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:
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