Do you wonder what metrics to measure to determine the overall health of your business? If you measure these metrics, do you know what to do or how to use the results?
Unfortunately, the metrics are not useful unless you track the proper ones and put what you learn into action. When you look at the information at face value, metrics for your business’s development are just individuals, chunks of data. In some situations, you may review the information and take a step back to see what will happen. In the best-case scenarios, you may take action to devise smart strategies to improve your business, create a sales forecast, improve the sales skills of workers, and more.
You must consider the difference in monitoring what is going on and acting on it. There are a few popular TV commercials that describe this situation. For example, you are not just going to a dentist to fix your cavity, you are receiving service from a dental monitor who will let you know what is going on with your oral health. He is not a security guard but rather a security monitor. They will not stop the burglar, just point out they are there.
While this is true, there are specific business metrics you must track and monitor. However, you also need to turn the results into an action that will impact your business. Keep reading to learn what those metrics are.
The Lead-to-Client Conversion Rate
If you have done the work to attract new leads, you may be satisfied; however, this is just part of the job. The final step is to convert these leads to happy customers. This is also what matters the most. When you track customer conversion rates, you can gain insights into how effective your CTAs, sales team, and landing pages are.
To determine your conversion rate, divide your new leads by your new customers. If the numbers are not what you thought they would be, try to decide on your next move, regardless of whether the sales team needs additional training or a landing page that requires optimization.
Your Sales Revenue
One of the most obvious factors that indicate if your business is healthy is your revenue. There are so many different parts of your business that are reflected in your sales revenue. You have to consider a few questions, such as are your products or services targeted to the right market? If so, do they need a quality alteration? Have you considered your marketing campaigns? Does the message that you use to resonate with your target audience? Are you capturing leads at the proper time and driving them further toward conversion?
If your revenue does not meet your expectations, you have several options. You can increase your sales offerings, provide strategic discounts or sales, or get the word out through your marketing campaigns or even fine-tune your team.
Customer Acquisition Cost
The cost to acquire a new customer is a metric that is generated from a few others, depending on how far down you want to go. The good news is, you may be able to find a snag if there is one offered at a higher level. The deeper metrics should be reserved for times when business is good, but you want it to be amazing.
It is up to you to decide what acquisition expense, like advertising and marketing, to include. A healthy customer acquisition cost trend will be progressively lower over time as your acquisition efforts first take hold, take root, and then begin to grow.
Tracking the Right Business Metrics
If you want to ensure your business is growing and that it is healthy, use the metrics found here. Doing so will pay off and ensure you get the desired results from your business. Being informed is the best way to track your business health and its success now and in the future.
