Understanding and evaluating your metrics is essential for providing superior customer service and generating more monthly recurring revenue (MRR) at the right price. You create a foundation for improvement and growth by gaining insight into your current performance.
In the new year, dedicating yourself to a deeper comprehension of business metrics is critical to advancing your goals. This progress is achievable through thoughtful reflection and a commitment to learning about your strengths and areas for development in your business practices.
Explore these TruMethods blog posts to elevate your understanding of metrics and key performance indicators (KPIs) in 2024.
Metrics play a pivotal role in driving the success of any business, encompassing various functions and roles within the organization. For those familiar with TruMethods, you’ll recognize my deep-seated enthusiasm for data and accountability. My experience has consistently shown that focusing on metrics — ensuring visibility and accountability — can significantly impact performance. I often refer to this approach as “instrumenting the business,” a strategy emphasizing the importance of measurement and data-driven decision-making at every level.
A concerning trend observed across MSPs, regardless of their size and scale, is a decline in a crucial metric: the number of tickets closed per support technician. This poses a significant issue. In a scenario where all other factors remain constant, a decrease in the daily ticket closure rate per team member leads to an increase in support costs. It’s key to monitor and address this trend to maintain operational efficiency and cost-effectiveness.
A key performance indicator for MSPs is average MRR. This metric influences several crucial aspects of business operations, including scalability, profitability, sales efficiency, and the cost of acquiring new customers. Additionally, it plays a vital role in determining the overall value of your business. To positively influence the average MRR, you must first establish a minimum MRR threshold. By doing this, you can have an immediate and beneficial impact on the metric, helping to steer your business toward greater financial health and stability.