In our last post we discussed the KPIs product training teams may measure, however if you are operating a P&L, there are additional KPIs you should be familiar with which are outlined in this post. With the basic KPIs, you can omit metrics, such as TSAT, and still have a good measure of efficacy and training success. However, with the revenue metrics we recommend monitoring as they are indicators for the health of your profit center, so we recommend monitoring all of these using reports and dashboards and selecting key metrics for goal setting.
Hours, Seats, Subscriptions: depending on your revenue model and how you sell training, these are metrics which allow you to measure the health of your business removed from a volume perspective.
Revenue: Dollars in is the baseline, additional metrics will contextualize this - and specifically will tell you if you’re making money.
Margin: This simply the cost of operating your business / how much revenue you have generated or recognized in that period. If you have a fixed fee structure you should measure projected vs actual margin.
Opportunities & Upsells: Understanding the number of opportunities driven to you and tracking a positive trends is important for monitoring pipeline
Win Rate: How often do those opportunities convert to a closed won deal.
Churn: If you have the TaaS model in place, monitoring and understand churn is essential to improving your business.
Utilization: Utilization is the number of billable hours in a week, and should be measure [hours billed]/[expected total work hours]. This is a leading indicator to profitability and also a good way to ensure your team doesn’t have too much or too little on their plates. Generally utilization is set somewhere between 50-90% - I personally recommend 70% for mature organizations.
By combining basic and revenue specific KPIs you will be able to most effectively measure the success of your TaaS business. In the next post in this series we'll share some tips on choosing KPIs for your business.