How to grow your business with Pluvo drivers and metrics

Unlock financial insights and drive strategic growth with Pluvo’s customizable metrics and drivers – tailored to elevate your business performance.

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Tracking and optimizing your key business metrics improves financial visibility and makes profitability far more achievable.

Pluvo enables you to create custom metrics and drivers that align perfectly with your business goals. Whether you’re a seasoned financial professional or a small business owner, leveraging these tools can seamlessly and effortlessly transform your decision-making process.

Read on to learn how!

Review and Customize Existing Metrics

Pluvo simplifies the initial setup by automatically creating essential metrics based on your QuickBooks integration, and this is only the beginning.

Exploring Pre-Built Metrics
Metrics like Cost of Goods Sold (COGS), Revenue, Gross Profit, and Net Income are pre-built, providing a solid foundation for your financial tracking.

Customize if Necessary
Adjust these metrics to better fit your needs. Whether adding variables for more detailed tracking or removing irrelevant data, Pluvo’s flexibility ensures your metrics are as precise as possible.

Set Up Operational Drivers and Metrics

To truly unlock Pluvo’s potential, dive into creating custom drivers and metrics tailored to your unique business operations.

Example → Customer Acquisition Cost (CAC):
Tracking how much you spend to acquire each new customer is crucial for optimizing your marketing efforts.

1. Create a Driver for Marketing and Sales Costs:
   Start by creating a driver named “Marketing and Sales Costs.” Use Pluvo’s custom formula feature, denoted by the # symbol, to pull in relevant expense accounts from QuickBooks.
2. Create a Driver for New Clients:
   Create another driver named “New Clients” and input the number of new clients gained in the period.

Set Up the CAC Metric:
Combine these drivers in a custom formula to calculate your Customer Acquisition Cost by dividing “Marketing and Sales Costs” by “New Clients.”

Example → Revenue by Service Line:
Understanding which services drive the most revenue can guide your business strategy.

1. Create Drivers for Each Service Line:
   For each service you offer, create a corresponding driver (e.g., “Revenue from SEO”) and use the # symbol to link it to the appropriate revenue account in QuickBooks.
2. Create the Revenue by Service Line Metric:
   Sum these drivers to track total revenue by each service line, giving you clear insights into which areas are performing best.

Example → Gross Profit Margin:
Profitability is key, and tracking your Gross Profit Margin helps ensure you’re staying in the black.

1. Verify the Existing COGS Metric:
   Ensure that the Cost of Goods Sold metric, auto-generated by your QuickBooks data, is accurate.
2. Create the Gross Profit Margin Metric:
   Use a custom formula to subtract COGS from Revenue and then divide by Revenue to calculate your Gross Profit Margin, providing a clear view of your profitability.

Example → Client Retention Rate:
Keeping your clients is just as important as acquiring new ones. Your retention rate is a strong indicator of your business’s health.

1. Create Drivers for Client Numbers:
   Set up two drivers: “Total Clients at Start of Period” and “Total Clients at End of Period,” inputting the relevant numbers manually.

Create the Retention Rate Metric:
Calculate your retention rate by dividing “Total Clients at End of Period” by “Total Clients at Start of Period” to assess how well you’re retaining clients over time.

Example → Utilization Rate:
Measuring how effectively your team uses their time is crucial for operational efficiency.

1. Create Drivers for Total and Billable Hours:
   Set up drivers for “Total Hours Worked” and “Billable Hours,” manually inputting the data as needed.

Create the Utilization Rate Metric:
Use a custom formula to divide “Billable Hours” by “Total Hours Worked,” helping you assess your team’s efficiency.

Use Custom Metrics and Drivers to Build and Customize Dashboards

Once your metrics and drivers are set up, it’s time to organize them into dashboards.

1. Create Dashboards:
Organize your key financial and operational metrics into dashboards, providing you with a real-time overview of your business’s performance.

2. Review & Generate Reports:
Use your dashboards to monitor critical metrics regularly. Generate reports to keep your team informed and guide your strategic decisions.

Regularly Review and Adjust Your Metrics

To stay ahead, regularly review your metrics and adjust as needed.

Monitor Metrics: Consistently review your dashboards to ensure everything is on track. If something seems off, adjust your drivers or metrics accordingly.

Optimize Based on Insights: Use the insights gained from your metrics to make informed business decisions. Whether it’s reallocating resources to more profitable service lines or tweaking your marketing strategy to lower CAC, Pluvo empowers you to take action.

Get Started with Pluvo Today!

Discover how Pluvo’s easy-to-use, easy-to-create Business Metrics can drastically improve your financial visibility. Book a demo today! 🌧️

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