Top 5 KPIs Every Business Should Be Tracking — But Usually Don’t

In the rush to generate leads and close sales, many businesses overlook the metrics that actually drive sustainable growth. Sure, you’re probably tracking sales, website visitors, or ad spend — but are you measuring the metrics that expose hidden inefficiencies, untapped revenue, and long-term performance?

At Sutra Analytics, we’ve helped dozens of businesses—especially in real estate, services, and product-based industries—build smarter systems for tracking what actually matters.

Here are the 5 underrated KPIs every business should be measuring — but most don’t.


1. Customer Acquisition Cost (CAC)

What is CAC?

It’s the total cost involved in acquiring a single paying customer. This includes:

  • Ad spend

  • Marketing tools

  • Sales salaries

  • Agency fees

  • CRM tools

Formula:
CAC = Total Marketing & Sales Expenses / Number of New Customers

Why It’s Critical:

If you don’t know how much it costs to acquire a customer, you can’t tell if your business model is profitable.

Example:
A real estate agency spends ₹2,00,000 on ads and sales salaries in a month and gets 20 confirmed clients.
Their CAC = ₹10,000
If their average commission per client is ₹8,000 — they’re losing money without even realizing it.


2. Customer Lifetime Value (CLTV)

What is CLTV?

CLTV measures the total revenue you can expect from a customer throughout their relationship with your business.

Formula:
CLTV = (Average Purchase Value) × (Purchase Frequency) × (Customer Lifespan)

Why It’s Critical:

When you compare CLTV to CAC, you get your profitability ratio. If CLTV is less than CAC — you’re burning cash.

Example:
An eCommerce business with an average sale value of ₹2,000 and average customer repeat rate of 3 times/year for 3 years = ₹18,000 CLTV
If their CAC is ₹3,000 — that’s a 6:1 return.
Now that’s sustainable!


3. Lead-to-Customer Conversion Rate

What is it?

It tells you how many leads turn into paying customers.

Formula:
(Total Customers / Total Leads) × 100

Why It’s Critical:

You may be generating 1,000 leads a month — but if only 10 are converting, something’s broken in your funnel. This KPI reveals where leads drop off.

Use Case:
We helped a SaaS client identify that their lead-to-customer rate was just 1.8%.
After tightening their onboarding emails, improving demos, and reducing friction in checkout, it jumped to 6.5%, tripling their revenue with the same number of leads.


4. Customer Retention Rate

What is it?

The percentage of customers who return or continue to use your product/service over a period of time.

Formula:
Retention Rate = ((E - N) / S) × 100
Where:

  • E = Customers at end of period

  • N = New customers acquired during the period

  • S = Customers at start of period

Why It’s Critical:

Acquiring a new customer is 5 to 7 times more expensive than keeping an existing one. Retention increases brand trust, referral potential, and lifetime revenue.

Insight:
We worked with a subscription-based business where customer churn was nearly 30% every quarter. After implementing a feedback system + automation using Google Sheets & Apps Script, churn dropped to 12%.


5. Average Time to Conversion

What is it?

The average time it takes a lead to become a customer.

Why It’s Critical:

This metric helps you identify bottlenecks in your sales process.

  • Is your sales follow-up too slow?

  • Is your product demo delayed?

  • Are leads stuck in decision paralysis?

Real Example:
A service-based company had an average conversion time of 21 days. After analyzing touchpoints and reducing unnecessary steps, we brought it down to 9 days, boosting cash flow and shortening the sales cycle.


Why Most Businesses Don’t Track These

Because these KPIs require systems to collect, analyze, and interpret data. Most businesses either:

  • Rely on manual Excel sheets

  • Don’t centralize their data

  • Don’t know how to visualize insights

That’s where Sutra Analytics comes in.


What We Do at Sutra Analytics

We help businesses:

  • Automate data capture using Google Apps Script

  • Create live dashboards in Google Sheets or Data Studio

  • Integrate CRMs, websites, and spreadsheets to build real-time KPI systems

  • Provide custom solutions that work for your team — no fluff, no overengineering


Final Thoughts

These 5 KPIs may not appear in your monthly report — but they should. They’re not just metrics; they’re drivers of strategy, efficiency, and profitability.

Want to get a free audit of your business KPIs?

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