What are Financial Manager metrics? Identifying the optimal Financial Manager metrics can be challenging, especially when everyday tasks consume your time. To help you, we've assembled a list of examples to ignite your creativity.
Copy these examples into your preferred app, or you can also use Tability to keep yourself accountable.
Find Financial Manager 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 Financial Manager metrics and KPIs 1. Net Profit Margin Calculated by dividing net profit by total revenue, expressed as a percentage. It shows how much profit a company makes for each dollar of revenue.
What good looks like for this metric: 10-20%
Ideas to improve this metric Reduce operational costs Increase product prices Enhance sales volume Improve customer retention Optimise supply chain 2. Return on Investment (ROI) Determines profitability by comparing the gain from an investment to its cost, calculated as (Net Profit / Cost of Investment) x 100.
What good looks like for this metric: 15-25%
Ideas to improve this metric Choose higher-yield investments Reduce investment costs Increase revenue from investments Enhance marketing strategies Improve financial forecasting 3. Gross Profit Margin Calculated by subtracting cost of goods sold (COGS) from revenue and dividing by revenue, expressed as a percentage, indicating the efficiency of production and pricing.
What good looks like for this metric: 20-40%
Ideas to improve this metric Negotiate better supplier terms Increase production efficiency Enhance sales and pricing strategy Reduce waste in production Control direct labour costs 4. Operating Profit Margin Measures what proportion of revenue is left as profit after accounting for operating expenses, calculated by dividing operating profit by total revenue.
What good looks like for this metric: 10-15%
Ideas to improve this metric Streamline operational processes Reduce administrative expenses Enhance revenue streams Focus on core business activities Minimise utility and overhead costs 5. Expense Ratio Expresses the percentage of total expenses to total revenue, highlighting cost management efficiency.
What good looks like for this metric: 60-80%
Ideas to improve this metric Implement cost-cutting measures Monitor expenses regularly Automate routine tasks Negotiate better vendor contracts Outsource non-core processes
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1. Customer Acquisition Cost (CAC) The cost of acquiring a new customer, calculated by dividing total marketing expenses by the number of new customers acquired.
What good looks like for this metric: Varies greatly, often between $5-$100
Ideas to improve this metric Optimise marketing campaigns Leverage social media and word of mouth Increase conversion rates on landing pages Experiment with cost-effective advertising channels Focus on customer referrals and discount programs 2. Monthly Recurring Revenue (MRR) The predictable revenue expected every month from subscription services or regular sales.
What good looks like for this metric: $0 in month one, with rapid growth expected
Ideas to improve this metric Introduce subscription-based services Enhance product features to retain users Upsell to existing customers Expand market to new customers Regularly assess pricing strategy 3. Customer Retention Rate The percentage of customers a company retains over a specific period.
What good looks like for this metric: 60-70%
Ideas to improve this metric Offer excellent customer service Maintain high-quality products Engage customers through regular communication Implement a loyalty or rewards program Regularly collect feedback and adapt 4. Net Promoter Score (NPS) A metric to gauge customer satisfaction and loyalty on a scale from -100 to 100 based on likelihood to recommend.
What good looks like for this metric: Above 20 is considered good
Ideas to improve this metric Regularly survey customers about their experience Implement customer feedback quickly Enhance product offerings based on feedback Improve customer support processes Build a community around your brand 5. Burn Rate The rate at which a company is spending its capital before generating positive cash flow.
What good looks like for this metric: Typically 1-2 years runway
Ideas to improve this metric Optimise operational efficiency Prioritise spending on revenue-generating activities Regularly review and adjust budget Seek additional funding if necessary Monitor cash flow closely
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1. Monthly Recurring Revenue (MRR) MRR is the monthly revenue your startup can reliably anticipate based on subscriptions or recurring contracts
What good looks like for this metric: $1,500 - $10,000 for early-stage startups
Ideas to improve this metric Develop new pricing tiers Upsell existing customers Reduce churn rate Implement referral programs Expand market reach 2. Customer Acquisition Cost (CAC) CAC is the total cost of acquiring a new customer, including marketing and sales expenses
What good looks like for this metric: Typically between $100 - $400
Ideas to improve this metric Optimise marketing campaigns Enhance sales team efficiency Utilise cost-effective channels Improve customer targeting Negotiate better ad rates 3. Customer Lifetime Value (CLTV) CLTV is the total revenue expected from a customer during their entire relationship with your company
What good looks like for this metric: 3-5 times CAC
Ideas to improve this metric Enhance customer experience Implement loyalty programs Increase product range Upsell and cross-sell effectively Provide consistent value 4. User Growth Rate The percentage increase in the number of users or customers over a specific period
What good looks like for this metric: 5-7% monthly for early-stage startups
Ideas to improve this metric Launch marketing campaigns Enhance product features Engage with users on social media Implement referral incentives Offer limited-time promotions 5. Churn Rate The percentage of customers who stop using your product or service over a given period
What good looks like for this metric: 5-7% monthly is often considered standard
Ideas to improve this metric Improve customer service Gather feedback to understand issues Regularly update and improve the product Offer personalised experiences Create re-engagement campaigns
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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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1. On-time delivery Percentage of project milestones completed on schedule
What good looks like for this metric: 85-95%
Ideas to improve this metric Create realistic timelines Use project management tools Monitor progress regularly Identify and mitigate risks Communicate effectively with the team 2. Budget adherence Percentage of project milestones completed within the allocated budget
What good looks like for this metric: 90-100%
Ideas to improve this metric Develop a detailed budget plan Monitor expenses regularly Utilise cost management software Negotiate better rates with vendors Implement a cost control strategy 3. Scope compliance Percentage of project deliverables that meet the defined scope
What good looks like for this metric: 90-100%
Ideas to improve this metric Clearly define project scope Use change control processes Regularly review project requirements Engage stakeholders throughout the project Maintain detailed documentation 4. Stakeholder satisfaction Average satisfaction rating from project stakeholders
What good looks like for this metric: 4-5 out of 5
Ideas to improve this metric Conduct regular feedback sessions Address stakeholder concerns promptly Maintain transparent communication Set realistic expectations Deliver high-quality work 5. Quality of deliverables Percentage of project deliverables that meet quality standards
What good looks like for this metric: 95-100%
Ideas to improve this metric Implement quality assurance processes Use regular testing and reviews Set clear quality criteria Provide adequate training Encourage continuous improvement
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1. Revenue Growth Rate Measures the rate at which a company's revenue is increasing over a specified period of time
What good looks like for this metric: 20%-40% annual growth
Ideas to improve this metric Enhance marketing strategies Expand into new markets Introduce new product lines Increase sales efforts Optimize pricing models 2. Customer Acquisition Cost (CAC) Calculates the total cost of acquiring a new customer, including all marketing and sales expenses
What good looks like for this metric: $1 to $3 per customer
Ideas to improve this metric Streamline marketing campaigns Utilise referral programs Optimise ad targeting Improve sales funnel efficiency Negotiate better rates with vendors 3. Customer Lifetime Value (CLTV) Estimates the total revenue a business can reasonably expect from a single customer account throughout their relationship
What good looks like for this metric: $200 to $1000 per customer
Ideas to improve this metric Increase average order value Improve customer retention Enhance customer support Upsell additional products or services Create loyalty programs 4. Monthly Recurring Revenue (MRR) Measures the amount of predictable revenue a company can expect each month
What good looks like for this metric: $10,000 to $50,000 for early scaleups
Ideas to improve this metric Increase subscription prices Offer annual payment plans Launch new subscription tiers Reduce churn rate Expand customer base 5. Churn Rate Indicates the percentage of customers who stop using a product or service during a given period
What good looks like for this metric: 2%-5% monthly churn
Ideas to improve this metric Improve product features Enhance user onboarding Engage with customers regularly Offer discounts or incentives Provide excellent customer support
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1. Investor Lead Conversion Rate The percentage of investor leads that become actual investors
What good looks like for this metric: 5-10%
Ideas to improve this metric Refine your target investor profile Enhance the quality of investor pitch deck Utilise personalised communication strategies Provide attractive investment incentives Follow-up consistently with leads 2. Average Investment Amount The average amount of money invested by investors
What good looks like for this metric: $10,000 - $50,000
Ideas to improve this metric Highlight potential high returns on investment Showcase successful case studies Enhance stakeholder engagement activities Offer exclusive opportunities for larger investors Improve clarity and transparency of financial reports 3. Investor Engagement Rate The level of interaction and engagement from potential investors during the investment process
What good looks like for this metric: 40-60%
Ideas to improve this metric Host investor networking events Create engaging investor newsletters Utilise social media for investor engagement Offer behind-the-scenes access to the team Conduct regular investor update meetings 4. Investment Proposal Acceptance Rate The percentage of investment proposals that are accepted by investors
What good looks like for this metric: 10-20%
Ideas to improve this metric Craft compelling investment proposals Provide clear risk and benefit analyses Strengthen team and management capabilities Show a proven track record of success Negotiate favourable terms and conditions 5. Funding Goal Achievement Rate The percentage of the funding goal that is achieved from investor contributions
What good looks like for this metric: 70-90%
Ideas to improve this metric Set realistic and achievable funding goals Utilise a tiered funding approach Engage a broad spectrum of potential investors Provide alternative funding mechanisms Regularly communicate the progress towards goals
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1. Monthly Recurring Revenue (MRR) The total revenue generated from all active subscriptions in a month. Calculated as the sum of all subscription values per month.
What good looks like for this metric: $10,000 - $500,000 depending on industry
Ideas to improve this metric Increase the price of your subscription plans Upsell existing customers to higher-tier plans Acquire new subscribers through marketing campaigns Improve product offerings to reduce churn Implement annual or semi-annual billing cycles 2. Customer Lifetime Value (CLTV) The total revenue a business can reasonably expect from a single customer account throughout their relationship. Calculated as average revenue per account multiplied by average customer lifespan.
What good looks like for this metric: $100 - $1,500 depending on industry
Ideas to improve this metric Enhance customer support to increase retention Develop loyalty programs Segment customers for personalized marketing Offer cross-sell and upsell opportunities Collect and act on customer feedback 3. Customer Churn Rate The percentage of customers who cancel their subscriptions over a given period. Calculated as the number of customers who left divided by the total number of customers at the start of the period.
What good looks like for this metric: 2-8% per month
Ideas to improve this metric Improve customer onboarding experience Regularly engage with customers through communication channels Offer limited-time promotions to retain wavering customers Analyse reasons for cancellation and address common issues Introduce long-term subscription discounts 4. Average Revenue Per User (ARPU) The average amount of money earned from each active user or subscriber. Calculated by dividing total revenue by the number of active users.
What good looks like for this metric: $10 - $200 per month
Ideas to improve this metric Encourage customers to upgrade their plans Introduce add-ons and premium features Bundle products and services Improve user experience to enhance perceived value Use targeted pricing strategies 5. Subscriber Growth Rate The rate at which new subscribers are acquired over a given period. Calculated as the percentage increase in subscribers from one period to the next.
What good looks like for this metric: 5-10% per month for growing businesses
Ideas to improve this metric Invest in digital marketing campaigns Offer referral incentives Enhance presence on social media platforms Partner with influencers or other businesses Continuously optimize your website for conversions
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1. Planned vs Actual Delivery Dates This metric compares the initially planned delivery dates to the actual delivery dates to assess the team's ability to meet deadlines
What good looks like for this metric: 80% of projects delivered on time
Ideas to improve this metric Conduct detailed planning sessions Implement regular progress reviews Improve risk management practices Enhance communication within the team Optimise resource allocation 2. Scope Creep Measures the changes and additions in the project scope after the project has commenced, indicating how often the team deviates from the original plan
What good looks like for this metric: Less than 5% increase in scope
Ideas to improve this metric Establish clear project requirements Implement strict change control processes Engage stakeholders early and often Document all changes meticulously Maintain a project scope baseline 3. Budget Variance This metric tracks the difference between the budgeted costs and the actual costs incurred, indicating financial planning accuracy
What good looks like for this metric: Less than 10% budget overrun
Ideas to improve this metric Conduct thorough budget forecasting Monitor expenditures closely Implement cost control measures Review financial reports regularly Optimise purchasing processes 4. Defect Density Measures the number of defects identified within a certain timeframe or phase of the project, reflecting product quality
What good looks like for this metric: Fewer than 1 defect per 1000 lines of code
Ideas to improve this metric Enhance testing processes Implement automated testing tools Provide training on quality standards Review code regularly Incorporate quality assurance in each phase 5. Customer Satisfaction Assesses the stakeholders' and customers' satisfaction with the delivered project through surveys and feedback mechanisms
What good looks like for this metric: Customer satisfaction score above 8 out of 10
Ideas to improve this metric Gather customer feedback regularly Act on the feedback received Improve stakeholder communication Deliver regular project updates Ensure project deliverables meet expectations
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1. Investor Meeting Attendance Rate The percentage of investors who attend scheduled meetings out of the total invited
What good looks like for this metric: 70-80%
Ideas to improve this metric Increase meeting reminders and follow-ups Offer multiple time slots to accommodate different time zones Incorporate engaging presentation materials Provide clear and concise meeting agendas Utilise feedback to improve future meetings 2. Post-Meeting Investor Follow-Up Rate The percentage of investors who engage in follow-up communication after a meeting
What good looks like for this metric: 50-60%
Ideas to improve this metric Personalise follow-up emails Highlight key takeaways from meetings Offer additional data or insights discussed in meetings Address any investor queries promptly Schedule subsequent touchpoints in advance 3. Investor Email Open Rate The percentage of investor-targeted emails that are opened by recipients
What good looks like for this metric: 15-25%
Ideas to improve this metric Craft compelling subject lines Send emails at optimal times Segment audience to target messaging Reduce email frequency to avoid saturation Ensure emails are mobile-friendly 4. Investor Engagement Index A composite score determining the overall engagement level based on various interactions
What good looks like for this metric: 60-75
Ideas to improve this metric Foster personal relationships Enhance content relevancy Regularly update investors on progress Invite feedback and suggestions Utilise investor-exclusive updates 5. Investor Response Time The average time taken by investors to respond to a communication
What good looks like for this metric: 24-48 hours
Ideas to improve this metric Implement a clearer call-to-action Utilise CRM tools to track and enhance interactions Ensure prompt internal communication for quick responses Provide immediate value in communications Follow up on non-respondents
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Tracking your Financial Manager 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.
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