If you're running a business and not taking the time to track and review your key metrics, you're leaving a ton of opportunities on the table. Worse yet, you're probably wasting valuable time, money, and energy that you could be using to actually grow your business.
Now, I get it—numbers aren't everyone's favorite topic. Not everyone loves spreadsheets, and that's totally fine. In fact, when I first started out, I could add some things in Excel, but that was about it. However, once I worked at a Big 4 accounting firm, I realized how crucial tracking and analyzing data really is.
Here's the thing—you don’t need to be a spreadsheet expert to understand what’s happening in your business. You just need to track the right metrics. Let’s dive into why business metrics matter and how they can help you stop guessing and start growing.
The Power of Consistently Tracking Your Metrics
One of the most important habits you can develop as a business owner is regularly checking your key business metrics. I’ve made this part of my weekly routine. Every Friday morning, I spend 20 to 30 minutes reviewing my business numbers. I analyze what’s changed from the previous week and—most importantly—why those changes happened. Did something increase? Why? Did something decrease? Why?
If you aren’t looking at your numbers regularly, you’re essentially flying blind. You’re basing decisions on gut feelings rather than actual data. And let me tell you, data doesn’t lie.
Vanity Metrics vs. The Metrics That Actually Matter
Let’s talk about vanity metrics. These are the numbers that look good but don’t necessarily tell you anything about the health of your business. Things like:
Number of followers
Likes on social media posts
Podcast downloads
Now, don’t get me wrong—these metrics can be interesting, and they definitely boost your ego. But they don’t necessarily correlate with how much money your business is making.
For example, I know plenty of entrepreneurs with fewer than 5,000 Instagram followers who are absolutely crushing it in their businesses. Why? Because sales aren’t done on Instagram.
Social media might help with visibility, but the real magic happens when you move people off social and into spaces where you can sell to them more effectively—like your website, email list, or sales funnels.
So, what should you be tracking? Let’s break it down.
Key Metric #1: New vs. Returning Users
One of the first things I look at every week is how many of my website visitors are new versus how many are returning. New users mean that I’m reaching fresh eyes, which is great. But returning users tell me that people are finding enough value to come back again and again. This can be a key indicator of how well I’m maintaining relationships with my audience.
I’ll often correlate new users with any recent marketing efforts, like guesting on a podcast or posting something viral on social media. It helps me see what’s working and gives me clues on where I can improve.
Key Metric #2: Website Traffic Sources
I also like to track where my website traffic is coming from. Did most of my visitors find me through Google, Pinterest, Instagram, or some other source? Knowing where your traffic is coming from helps you figure out where you should focus your marketing efforts.
If you’re running ads, you’ll likely see most of your traffic come from there. But if you’re not, knowing whether traffic is coming from organic searches, social media links, or referrals can help you see what’s working and what’s not. If I notice a spike in traffic from Pinterest, I’ll put more energy into creating engaging pins. If Instagram’s bringing in more people, I know my content strategy is hitting the mark.
Key Metric #3: Average Engagement Time
It’s one thing to get people to visit your website, but how long are they sticking around? The longer someone spends on your site, the more likely they are to take an action you want—whether it’s signing up for your email list, downloading a freebie, or making a purchase.
If I notice my engagement time dropping, it could mean that people aren’t finding what they expected or that my site isn’t engaging them. Higher engagement times generally mean you’re providing the right value. Low engagement? Time to make some changes.
Key Metric #4: Engagement Rate
One of my favorite metrics is engagement rate, which is the percentage of sessions where someone spends more than 10 seconds on my site, views multiple pages, or takes a conversion action. If this number starts dropping, I know something’s wrong—whether it’s a technical issue on the site or simply that my content isn’t hitting the mark.
A high engagement rate is a sign that your site is providing value and keeping visitors interested. Anything above 50% is solid, and anything below that might mean you have some optimizing to do.
Key Metric #5: Revenue and Expenses
This one’s a no-brainer, but you’d be surprised how many entrepreneurs I meet who don’t have a clear idea of how much money they’re making or spending every month. Tracking your revenue and expenses is critical if you want to scale your business.
If you aren’t tracking these numbers, how do you know if you’re profitable? How do you know if you can afford to invest in new tools, services, or marketing efforts? Every week, I look at my revenue streams, analyze any spikes, and cut unnecessary expenses. You might be paying for a tool you’re not even using anymore—if it’s not helping your business, cut it and redirect those funds to something that is.
What’s the Point of Tracking Metrics?
So, what’s the big deal? Why bother tracking all these numbers?
Because metrics tell you the story of your business. They give you clear, actionable insights into what’s working and what’s not. And if you’re not tracking these metrics regularly, you’re going to end up wasting time, energy, and resources on things that don’t actually move the needle.
Let’s say your website traffic spikes one week, but you don’t stop to analyze why. Maybe you were featured in a blog post or a popular Instagram account mentioned you. If you don’t look into it, you’ll miss the opportunity to replicate that success.
The key is to look for patterns over time. If your website traffic is consistently growing when you post on Pinterest, for example, that tells you where to put your focus. If your engagement rate is dropping, that tells you it’s time to make adjustments.
Don’t Forget User Behavior
One of the most insightful things I track but isn't based on a number is user behavior. I use a tool that anonymously records how people navigate my website—what they click on, how long they spend on each page, and where they might get stuck. This helps me identify broken links, confusing flows, and areas that need improvement.
You can also use tools like heatmaps to see where visitors are spending the most time. This data is invaluable because it shows you not just what people are doing, but why they’re doing it. It’s like having a front-row seat to your audience’s experience on your site.
Wrapping It Up: Focus on What Matters
At the end of the day, tracking your business metrics is all about focusing on what actually matters. It’s about making data-driven decisions that move your business forward instead of relying on guesswork.
Start small. Pick a few key metrics to track, like website traffic or engagement rate. As you get more comfortable, you can expand and track more data points. The goal is to develop a clear picture of what’s working in your business so you can do more of that—and stop wasting time on the stuff that isn’t moving the needle.
Thrive in 5
Alright, now it’s time for your Thrive in 5—the action steps you can take today to start seeing real results in your business:
Set up a system to track your metrics. Whether it’s a spreadsheet, Google Analytics, or a simple notebook, start tracking key data points every week. You can’t improve what you don’t measure, so make this a habit.
Download my free guide on the 5 key metrics you’re probably not tracking but should be. This guide will walk you through exactly which numbers to track and how to find them. The link is in the comments or at the bottom of this post.
By focusing on the right metrics, you’ll be able to make smarter decisions that drive growth. So go out there, track your data, and watch your business thrive!