In the context of products and services, adoption is the act of beginning to use something new. Considering new features and new users, there are four types of user adoption: Internal adoption: When existing users begin using new features. For example, the percentage of existing Instagram users who adopt a new story feature within 1,…
The Gender Ratio metric gives viewers insight into a key facet of diversity in the workplace: the female to male employee ratio. As society, and subsequently the workplace, becomes more and more focused on the importance of diversified workforces with varying perspectives being offered, this metric is paramount in assuring that the gender ratio of your employees…
The debt-to-capital ratio (D/C ratio) measures the financial leverage of a company by comparing its total liabilities to total capital. In other words, the debt-to-capital ratio formula measures the proportion of debt that a business uses to fund its ongoing operations as compared with capital. This financial metric can help you understand a range of…
Quick Ratio measures the ability of your organization to meet any short-term financial obligations with assets that can be quickly converted into cash. This ratio offers a more conservative assessment of your fiscal health than the current ratio because it excludes inventories from your assets. Like your current ratio, a quick ratio greater than 1…
Current Ratio measures the ability of your organization to pay all of your financial obligations in one year. This ratio accounts for your current assets, such as account receivables, and your current liabilities, such as account payables, to help you understand the solvency of your business. Generally speaking, a ratio between 1.5 and 3 is preferable and indicates strong…
The Accounts Payable Turnover KPI measures the rate at which your company pays off suppliers and other expenses. This ratio is important for understanding the amount of cash that your business spends on suppliers during any given period. It shows how many times over the course of the year your business is able to pay off its…
Process Cycle Efficiency, also known as “Flow Efficiency” or “Value Add Ratio,” is a measurement of the amount of value-add time in any process, relative to lead time (the time between the initiation and completion of a production process). The higher the ratio, the more efficient your process. This metric quantifies waste throughout a system…
The Sales Opportunity metric organizes prospects based on opportunity value and the probability of closing the sale. Each prospect has an estimated purchase value associated with them to help your team prioritize their efforts. Prospects are sorted according to the likelihood of a win (stage) and the value of a win (estimated value). Each stage may have a…
The Timeliness of Issue Resolution metric helps your team gain insight into how effective and efficient they are at addressing and fixing reported issues. While issues are bound to happen, it is important that they are resolve within a suitable period of time. Formula(Issues raised by customers that are resolved within a given time period /…
Customer retention rate is the percentage of existing customers who remain customers after a given period. Your customer retention rate can help you better understand what keeps customers with your company, and can also signal opportunities to improve customer service. Once you understand how well or poorly your company retains customers, you can work to…