Understanding Count, Measurement, and Flat Metrics
When setting up a Metric, you can track it in one of three ways:
1. Count Metrics
Count Metrics add up actual values from each interval, starting from zero and ending with your quarterly target.
Examples of Count Metrics:
- Revenue
- Number of New Clients
- Number of Qualified Leads
Example:
If you track New Clients, you start the quarter with zero and aim for a target number by the end of the quarter (e.g., signing 50 new clients).
2. Measurement Metrics
Measurement Metrics start from an existing value and do not add up between intervals. Instead, they provide a running target throughout the period.
Examples of Measurement Metrics:
- Operating Cash
- Total Subscriptions
Example:
If you track Operating Cash, you may start the quarter at $100,000 and have a goal of $150,000 by the end. Unlike Count Metrics, Measurement Metrics do not reset to zero each quarter.
Pro Tip: If you're unsure whether to use Count or Measurement, ask yourself:
- Does this Metric reset to zero each quarter? → Use Count
- Does this Metric carry over as a running balance? → Use Measurement
3. Flat Metrics
Flat Metrics have a constant value where progression isn’t the goal. Instead, they track whether the Metric stays at or above a set target.
Examples of Flat Metrics:
- Net Promoter Score (NPS)
- Any percentage-based Metric
Example:
If your NPS goal is to stay above 80%, any score below 80% signals a missed target. However, this does not affect the quarterly target, since it's not cumulative.
Each Metric type helps track progress differently, so choose the best fit for your business goals!