How to understand ratios that measure performance on your accounts

How to understand ratios that measure performance on your business accounts? Measuring the performance on your accounts is easily done when you look at the different ratios that come into play.

There are several different types of ratios that a business can measure. Here are some examples.

#1 A call center can measure incoming calls, calls on hold, and calls answered. These ratios can help to understand what level of performance they are running at.

#2 A shipping business can measure the ratio of calls coming in for orders, orders completed, and orders shipped out.

#3 A manufacturing business can measure the ratios of bikes that needed to be built, the bikes that were built, and the bikes that had problems with completion, and the ones that were just right.

Each of these different scenarios is a way of looking at how ratios work within a business. This is how a business will be able to see what is happening with the performance of their business.

A ratio can help to show areas that need training and improvement. It will also show areas of great success and when rewards and kudos will be called for.

Looking at example #1 the call center, you will see that in order for a call center to be successful, thee needs to be some balance. There will need to be enough calls coming in. Then the calls will need to be answered in a timely manner. There will need to be low hold times for customer satisfaction to be at the higher levels. So a ratio that would be looked at would look like this.

500 calls incoming
1-minute average hold time
480 calls answered before abandoned

With this you will say that in that day, there were 96% of all the calls that came in answered. Then you will see that on average all of those calls where answered with a 1 minute hold time or less. This is a good ratio for many call centers.

Using these same ideas you can look at what ratios of performance matter for your business. Then you can use those ratios, to track your success, performance, and training needs.

For different accounts in your business, you will find different ratios that will matter more than others. In some accounts, call times matter more than the actual hold times. Or the quality of the bikes created, is more important than the volume of bikes that are created. The same holds for boxes shipped. If it is more important that a package goes out on time, than those will be the ratios you will be more interested in.

You may track other performance ratios for your accounts; however, there will be some ratios that matter more than others. This can work for employees attendance, on time employees, and employees that leave early.

Any performance stat can be measured in ratios, if you gather the data ahead of time. The key is getting as accurate data as possible. There are many programs available that can help track the performance. The different options will be dependant on the type of business you run.

This is how to understand the ratios that measure performance on your accounts. With this in mind, you will be able to look at the performance of the different accounts in your business, and then look at where improvement can take place.