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Sales Metrics or Sales Balanced Scorecard is just another one of those words that does not need to be explained to anyone in the Business world, for them, it can be as simple as saying the word 'chair'. But, for the layman, or the untrained ear, the term SALES METRICS may not make much sense at all. Sure, a basic definition can be made just by defining Sales and Metrics separately, but does it go any deeper than that? Mostly yes, but most of the time Sales Metrics is just what its name means. It is a way by which the Sales performance of a company or organization is measured. Sales Metrics is otherwise known as business metrics. It is defined as a measurement of any type that is used to determine the progress of some components of an organization or company. Most of time, these 'components' are often in measurable form. By 'measurable' it means that it can be quantified or is in the form of numbers. Business or Sales Metrics are used in a discipline called Business Intelligence which is the monitoring of how a business is performing. Perhaps the most important feature of Sales Metrics is the fact that it provides an illustrated look into how a company is doing. This is done because the data collected can easily be translated into charts and graphs that give a viewer a quick and in depth look into how a company has fared without digging into months and years worth of data. Examples of Sales Metrics include: Employee and Customer turnover rates - this type of gauge is helpful if the company relates it success to the number of clients it has catered to or to the number of employees that have stayed on with company because they have found working for such company favorable. Most companies who go by such metrics as customer turnovers include: retail stores, restaurants and other customer oriented institutions. Companies that gauge their success on the rate of employee turnovers are those companies that tend to pride themselves on employee satisfaction. Another example of sales metrics is revenue. Revenue is probably one of the most common values to measure a company's success by. It follows that the rate of a company's revenue is directly proportional to the success of the company: the bigger the revenue, the happier a company is. Other examples include: the rate of ROI (return of investment) and the EBITDA or the Earnings before interest, taxes, depreciation and authorization. The data provided by sales metrics are important to a company because it gives the company a look into how they are doing and what their standing is. It can be a gauge of the company's effectiveness and also to see how it has improved over a period of time. These gauges are also important when the company is looking at which areas they can improve their performance. It can also indicate how a company can maintain their level of performance, especially if they are already doing well.
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