Systems and Measures
At the end of the year it’s inevitable that someone will approach you and ask, “How did your business end up for the year?” Your answer, flippant and narrow for the conversation, is usually a simple, “Great. We ended on a high note.” or “There’s always room for improvement”. But, do you really know?
Before you can talk about or understand what ‘success’ is for your company you need to define how you measure success. Profit and loss are an easy way to look at it but there is a time in your business when you need to go deeper.
- How many leads did you get per month?
- What is your conversion rate on those leads?
- What was the cost per lead?
- What is the longevity of a customer?
Once you decide what defines success you need to put systems in place that help you collect the data needed so you can measure. Data is your friend. The more you have and understand the intricacies of it, the more you will be able to adapt and make changes for greater growth going forward.
Compiling and collecting data is a great tool. But you need to be able to read the data and use it to strategize a plan. For example, let’s say your efforts are bringing in 50 leads per month and you are spending $1000 to get those leads. But of those 50 leads only 5 are becoming customers. Your cost per lead may be $20 but your cost per conversion is $200. Then of those 5 new customers none of them purchased again.
This information says the leads you are getting aren’t the right people. Either your target audience or your messaging may not be connecting. The fact that the new customers didn’t become repeat customers says that your nurturing process needs developed.
The next question you will ask is ‘how’? You may find that having someone to consult with on your data and help you develop a strategy is the life line you need for your business. Getting a new perspective or another set of eyes to help you see the growth you want in your business is a necessity that should not be denied.
Having a goal without a plan – is just a dream. And dreams don’t pay the bills.
