59 Metrics that MSPs Can Use to Become More Successful
Want to skyrocket your MSP’s growth and success? This list of 59 metrics will help you choose the data to do so:
Before we get started...
An Important Note: Just because we’ve listed 59 metrics in this list, doesn’t mean that you should monitor all of these metrics at once. Monitoring all 59 metrics at one time is guaranteed to result in analysis paralysis.
Instead, follow the rule of 3’s by assigning 3 metrics to each person in your leadership/management team. You can learn more about using the rule of 3’s when choosing metrics in this prior blog post.
With that said, let’s get started...
Financial Metrics for MSPs
- Cash On Hand
Keeping track of your cash flow will help you to stay out of financial trouble.
- Months of Cash
Another way of looking at cash on hand, months of cash goes a step further by letting you know how long that cash will last you.
- Accounts Receivable
Monitoring your receivables will allow you to see how much money is awaiting customer payment, which tells you how much money should be coming in during the next 30 days, and also alerts you as to which clients are not paying on time.
A no-brainer due to the popularity of the P&L statement, tracking your profit will enable you to see how well your business has performed and create a baseline for future data. Just note that this isn’t a real-time metric and only provides a look at the past performance of your business.
- Unpaid Invoices
Tracking unpaid invoices allows you quickly and easily identify which client’s services need to paused or canceled.
Your operating costs will provide insight into both how much revenue you need to bring in and whether you are operating with too little margins.
- Labor Costs
Breaking overhead down a little, your labor costs will help to identify whether you are hiring more personnel than you can afford.
- Debt/Asset Ratio
The Debt/Asset Ratio provides information on your business’s financial leverage.
Utilization measures the actual revenue earned by assets and helps you identify if you could be operating more efficiently.
- Client Concentration
More important for small to medium sized MSPs, client concentration is a powerful measurement that identifies the percent of profit that each client is responsible for.
- Revenue By Category
Breaking down revenue by category will allow you to identify whether you need to diversify your sources of revenue or not.
- Service Gross Margin
Services are a great business, but if you’re not monitoring your profit margin you could be making a big mistake! This allows you to ensure your business is performing as efficiently and successfully as possible.
- Service Team W2 Ratio
Similar to service gross margin, this metric allows you to ensure your business is operating at peak efficiency and profitability.
- EBITDA Margin
Standing for earnings before interest, taxes, depreciation, and amortization, EBITDA margin is a measure of your company’s profitability and financial health.
- Total Customers
Monitoring the number of total customers will give you a quick look at your MSPs health by allowing you to check for growth or loss.
- Customer Lifetime Value
Customer lifetime value will help you know when to look at raising your rates and how and when you should look to increase your total customers.
- Sales Expense as a % of Revenue
Your sales expenses as a percentage of revenue will help to identify how efficient your sales and marketing processes are and when to allocate more or less funds to sales and/or marketing.
Sales and Marketing Metrics for MSPs
- Sales Growth
Sales growth is one of the easiest ways to check if your business is growing, making it a popular metric for businesses to track.
- Sales Opportunities
Tracking your sales opportunities will allow you to predict the number of new customers that will come in and ensure that you’ve got enough potential customers for your sales reps to reach out to.
- Quote to Close
Your quote to close ratio is the average number of quotes that are sent before one is closed. It will help you identify potential issues with your quote, whether that’s price, timing, or some other factor.
- Age of Opportunity
Looking at the age of each opportunity will allow you to recognize patterns for identifying when the ideal time to prioritize an opportunity is, increasing your close rate.
- Response Time
Monitoring the response time of your sales reps will help you to ensure your sales cadence is being followed and doesn’t need to be changed or improved upon.
- Total Pipeline Dollars
Tracking the number of dollars in the pipeline can help you predict how much revenue will come in the next month.
- Website Visitors
While often considered a vanity metric, your website visitors can provide great value. For example, when combined with your average conversion rate you can use it to predict how many leads will be generated in the coming months.
- Bounce Rate
Your bounce rate will let you know if the people visiting your site are finding what they were looking for or if they are getting frustrated and exiting your site. This is particularly important for SEO and PPC ads.
- Leads from Website
The number of leads coming from your website will help to see its effectiveness in driving new customers to your MSP.
- Unique Blog Page Views
Many MSPs have now begun to blog in order to offer increased value to their clients and help capture new leads. Monitoring the number of people who visit your blog will help you see the worth of this channel.
- Newsletter Views & Clicks
If you send an email newsletter to your customers and/or a subscriber list, you can identify how much value it’s providing your company by analyzing how many people are viewing and clicking on your emails.
- Social Media Mentions
Having a presence on social media is necessary today, and it’s crucial for a business to monitor their engagement on social media by tracking social media mentions.
- Market Growth Rate
Monitoring market growth rate will allow you to predict whether there will be more customers for you to pursue or whether the market has reached its peak and it’s time to pivot towards a new customer base.
- Market Share
Tracking your market share will also help to let you know when it’s time to move towards a new customer base or to keep pursuing customers in your current market.
- Brand Equity
The measure of the value of your brand (not the company’s equity) is difficult to track but necessary for successful decision making. Imagine if the Ford Mustang was changed to be the Ford Fastback! The car’s sales would likely plummet. Track your brand equity to help drive brand growth and make better decisions.
- Cost per Lead
Cost per lead helps you to establish which platforms are viable and whether you need to be charging your customers more for your services.
Service Metrics for MSPs
- Technician Utilization
Technician utilization is an often overlooked metric, but it can directly contribute to your business’s bottom line! Monitoring it will help to ensure that your service team is operating as efficiently as possible.
- SLA Adherence
Complying with your SLAs is incredibly important for MSPs, and there’s no way to ensure you are doing so without measuring your SLA adherence!
- Customer Satisfaction
Customer Satisfaction (also abbreviated as CSAT) is a measure of how satisfied a customer was with their experience. Monitoring CSAT scores will let you identify how happy your service team is leaving your customers.
- Tickets Opened Today
Monitoring this metric will provide a quick look at what’s coming in and help you identify spikes in real time.
- Tickets Closed Today
Looking at your tickets closed today will give you an idea of whether your team is ahead or falling behind in real time.
- Assigned Tickets by Technician
Assigned tickets by technician will allow you to identify which technicians are your top performers and who could use a little coaching/training.
- In Progress Tickets
Tickets that are in progress will allow you to see if your technicians are falling behind or keeping up with their tickets.
- Resolved Tickets
Tracking the number of resolved tickets will allow you to see if your team is performing at the necessary levels to provide good customer service.
- Unassigned Tickets
Many MSPs triage their tickets and assign them to technicians based on severity and topic. If your tickets are not being assigned fast enough you may need to consider changing your triage process.
- Customer Responded Tickets
Another great metric to be tracking is the number of tickets in which a customer has responded but hasn’t yet received a response from your team. This allows you to identify whether your team is responding fast enough to tickets.
- Waiting on Customer Tickets
Tracking the number of tickets that are waiting for a response from your customer will allow you to identify a potential issue before it happens. You may need to follow up more often or explore different methods of communication with your customer.
- Tickets Past Due
Tickets past due will help you to ensure you are not falling behind on your ticket load.
- Tickets Opened By Client
If you’re familiar with the Pareto Principle, you’ll know that 20% of your clients will account for 80% of your tickets. Monitoring tickets open by client will allow you to identify those clients and either charge them more, notify them so they can better train their employees, or fire them as a client.
- Tickets Open by Type
By monitoring your tickets open by type, you can identify which category of tickets are responsible for the most open tickets and which are taking your team longest to resolve.
- Stale Tickets
Sometimes a ticket goes without an update for an extended period of time. Normally, these tickets are lost, but by monitoring the number of stale tickets you can ensure all tickets are being followed up on in a timely manner.
- Average Time to Response
Responsiveness is one of the key factors in determining whether a customer churns or becomes a promoter of your business. Tracking your average time to response will help you monitor and improve your responsiveness.
- Average Time to Acknowledgment
Average time to acknowledgment will help you monitor whether you are hitting your SLAs or not.
- Average Time to Resolution Plan
This is another metric to help track whether you’re reaching your SLAs.
- Average Time to Resolution
Yet another metric for monitoring SLAs.
- Tickets Opened and Closed in the Last 14 Days
Tracking the amount of tickets that have been opened and closed in the last 2 weeks will help you identify short term trends and see if your team is handling the number of tickets or is falling behind.
- Top Ticket Closers for the Week
Leaderboards used to identify the reps who are closing the most support tickets will help to provide a little healthy competition between your team members.
- Kill Rate
Identifying whether your team is closing more tickets than are being opened is crucial to ensure you’re not falling behind.
HR Metrics for MSPs
- Revenue per Employee
A powerful, but often overlooked metric, Revenue per Employee allows you to gauge how efficiently your company is using its employees.
- Employee Churn Rate
Monitoring your employee churn rate can help you make better hiring decisions and highlight areas where you can improve your company’s culture.
- Employee Satisfaction
Employee Satisfaction helps you understand how happy your employees are and by doing so will allow you to identify any potential problems.
- Employee Engagement
Measuring employee engagement will allow you to identify how much effort your employees are willing to put towards the job and its responsibilities.
Wow, that was a lot of metrics...
Here’s the thing: these aren’t all of the metrics you could be using to improve your MSP. There are likely hundreds of metrics to choose from, and we know of at least 20 more that we’re willing to share. To get this entire list along with the 20 extra metrics in a handy PDF, you can quickly download here:
As we mentioned at the beginning of this list, don’t think that you should be tracking all of these metrics at once. Instead, view this list as a resource for ideas when you need to improve a certain area of your business but don’t know exactly where to start.