How to measure your progress

3 minute read • Last published: 25 February 2025

Setting up a performance measurement system can help play an important role within your business plan and overall strategy.

Measuring progress regularly can help you gain key insights into how well your business is performing overall. It can help highlight areas for improvement on profitability, sustainability and growth.

Find out more information on different growth strategies your business can use to set out clear targets.

Key benefits of customer growth

Increased revenue
The more sales, the higher the income for the business to look at key areas for growth.
Improved brand reputation
Satisfied customers are more likely to recommend your business through word of mouth to friends or family. In the long-term this could help generate repeat visitors.
Reliable data-driven insights
Analysing customer behaviour and feedback can help you determine how to improve your product offering through marketing strategies and excellent customer service.

How to track business growth

Set SMART goals and KPIs
Once you’ve identified key metrics, the next step is to define your business goals through SMART goals and Key Performance Indicators (KPIs).
Setting KPIs is a strategy to help your business focus on areas which are important. For example, helping to identify peak seasons, adjusting room rates, tracking the percentage of enquiries that result into bookings etc.
SMART goals provide the direction and focus for your actions on what your business wants to achieve, while KPIs provides feedback and measurable data on whether these goals are being met.
Use analytics tools
Use platforms including Google Analytics and CRM (Customer Relationship Management) systems to gather data on your key metrics.
Compare data
Allow time by comparing current and previous performance. This can be monthly, quarterly and yearly and can help identify emerging trends that could be relevant to your business needs.
Regular monitoring
Review your data to identify any room for adjustments to your overall business/products.

What is a SMART goal?

SMART stands for specific, measurable, achievable, relevant and time-bound. These goals set out clear attainable, goals to help create key milestones and metrics for your business.

Specific
Define what sales you want to achieve eg increase visitor numbers by 10%.
Measurable
Establish metrics to track progress, eg increase the booking value £30 per guest.
Achievable
Set realistic goals to reach targets, this is vital for smaller businesses who are just getting started. For example, launch a new history and culture tour and attract 80 participants per month.
Relevant
Allows you to think about the bigger picture for your business. Is the goal worthwhile and does it fit with your immediate and long-term plans? For example, grow online audience by 1,000 users and deliver two social media campaigns to help drive revenue.
Time-bound
When will you achieve your goal? Set out a timeframe for your business to achieve this goal. For example, post each day on Instagram using company-specific hashtags and popular hashtags to help generate 1,000 new followers on Instagram by 31st August.

Key industry metrics

These are some suggested measurements for a tourism or events business based in Scotland.

Financial metrics
- How much revenue are businesses generating weekly, monthly or yearly?
- What is the percentage of revenue which translates into profits?
- How much are visitors spending on average?
Visitor metrics
- Visitor numbers
- The number of reservations made for tours and accommodation
- Duration of stay
Accommodation metrics
- Available rooms booked
- Average price per room per night
Customer satisfaction metrics
- Gathering customer feedback
- Customer loyalty – are visitors likely to recommend you to friends or family?
Market share analysis
- Comparing your business performance with other businesses within the same sector.
Sustainability metrics
- Energy consumption
- Waste produced and recycled
- Transport emissions

Important factors to consider when analysing growth

When you come to analyse your results, make sure to consider how much these factors could have impacted your performance.

Seasonality

Remember businesses often experience fluctuations between seasons especially in terms of revenue. In winter, some businesses often close or open at reduced hours.

Market trends

Keep up to date with the latest market trends and adapt your products accordingly to customer behaviours.

Destination factors

How easy is it to reach via public transport? What is the average cost of accommodation? Are there key events taking place that will interest your markets?

Find more information from Business Gateway on measuring business performance.

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How to measure your progress

Key benefits of customer growth

Increased revenue

Improved brand reputation

Reliable data-driven insights

How to track business growth

Set SMART goals and KPIs

Use analytics tools

Compare data

Regular monitoring

What is a SMART goal?

Specific

Measurable

Achievable

Relevant

Time-bound

Key industry metrics

Financial metrics

Visitor metrics

Accommodation metrics

Customer satisfaction metrics

Market share analysis

Sustainability metrics