Key Metrics To Track Performance
In our last issue of Letts Talk, I shared guidelines for building a Key Performance Indicator tracking system. Many of you wanted to learn more about the actual metrics that chambers of commerce use. Here’s an outline of some for you to consider:
What metrics will you measure?
A balanced KPI tracking system will ensure chamber progress in account growth, engagement, advocacy impact and financial sustainability.
Membership Sales Metrics:
Lead Generation: Number of new leads generated, lead sources, and conversion rates.
Churn Rate: Percentage of members who cancel their membership within a given time period.
Retention Rate: Percentage of members who renew their membership.
Membership Growth Rate: Rate of growth in total membership numbers.
Sales Cycle Length: Average time taken to convert a lead into a member.
Average Membership Duration: Average length of time a member stays with the chamber.
ARPU: Average revenue per user. This is an important indicator of each member’s revenue value.
Cost Per Acquisition (CPA): Total cost of acquiring a new member.
Lifetime Value (LTV): Total revenue expected from a member over their lifetime with the chamber.
Engagement Metrics:
Event Participation: Attendance rates, repeat participation, and engagement levels.
Content Engagement: Metrics on engagement with newsletters, webinars, and social media posts. Open rates, click-throughs, Likes/Follows, webinar attendance.
Website Behavior: Tracking user journeys on the website, bounce rates, and time spent on site.
Financial Metrics:
Revenue Analysis: Detailed breakdown of revenue streams and trends over time, including receivables for example.
Expense Tracking: Monitoring operational and project-specific expenses.
Surplus Margins: Gross and net surplus margins by revenue stream.
4. Advocacy Impact Metrics:
Policy Influence: Success rates of advocacy efforts, including passed legislation and policy changes.
Stakeholder Engagement: Number of meetings and communications with key stakeholders.
Community Impact: Coalitions formed, joint ventures and campaigns and the many associated meetings, forums etc. to build community capacity.
Tools and Systems to Get Started
What tools, resources and platforms can best support your Performance Tracking System? Progressive chamber leaders look at five areas:
Advanced CRM Systems: Invest in sophisticated CRM systems for comprehensive data tracking and analysis. Many, such as, Growth Zone/ChamberMaster, come with built in dashboards.
Data Analytics Software: Use advanced analytics tools such as Google Analytics to process and interpret data effectively.
Training Programs: Provide staff with training on data analysis and KPI management.
Dedicated KPI Team: Establish a dedicated team responsible for monitoring and reporting KPIs. Make it each team lead’s responsibility to track a handful of metrics and share openly with other teams.
Benchmarking Tools: Use benchmarking tools to compare performance against industry standards and competitors.
Benchmarking Component
To ensure continuous improvement and competitive advantage, chamber leaders should regularly benchmark their KPIs against:
Industry Standards: Compare KPIs with industry averages and best practices. The ACCE annual survey for example.
Peer Chambers: Analyze the performance of similar chambers of commerce to identify strengths and areas for improvement. The Business Development Network at Chamber Executives of Ontario for example.
Historical Data: Evaluate current performance against historical data to track progress and trends.
Global Best Practices: Incorporate global best practices and innovations in KPI tracking and management.
Tracking systems will vary from chamber to chamber. It is important that you use metrics that are meaningful to your team and directly relevant to improving the member experience. Keep in mind that you don’t have to track everything. Focus on a handful in each strategic area and adjust upon quarterly review.
