If you want to effectively manage your business, count the key indicators! This is not only a way to identify the true performance of a business, but also an opportunity to fix everything if the company loses momentum.
- How much is your client worth?
I ask this question to entrepreneurs who have turned to me for consulting services, and I meet only a bewildered look:
- Who knows!
- Yes, somehow they didn’t count …
- How to find out?
- Why do you need this?
Here is a series of familiar responses. Over the last year of work, only ONE business leader was able to provide the necessary statistics.
Meanwhile, we all well understand: it is impossible to manage what is not counted. If we do not track the conversion of each ad source, then most of the budget is being lost. If we do not have information about how much it costs more to attract a new client than retaining an old one, we will not strive to improve service, product quality, train staff, or build a customer-centric system in the company. Customers in the bulk will be "one-time", and not permanent, forcing the head of the business and the marketer to come up with more and more new ideas to attract buyers to the business.
The first thing I start with in consulting is the measurement of the main indicators. The entire management staff of the company is watching this process with interest and a share of malice, but how the expressions on the faces of these people change when we receive specific numbers! It often turns out that the cost of a new client is practically equal to the amount of the purchase made by him, after which, as I said above, he leaves the company forever. Is it any wonder that the business is working almost at zero, from time to time slipping into a minus?
Meanwhile, it is not at all difficult to bring a company balancing at the break-even point to a good plus. To do this, three components should be analyzed and adjusted: the quality of the product or service, the work of the staff, and the effectiveness of advertising. High-quality work on these three "pillars" is guaranteed to increase business income by 30-50%. In my practice, there are often cases when the above measures, reinforced by the introduction of "Wow - service" and post - sale customer support, doubled the company's profits.
So, what indicators should be considered constantly in your business?
· The number of customers who responded to the advertisement (potential customers);
· The number of customers who made a purchase through this advertisement;
· Average check of purchases per day, week, month, quarter, year;
· The number of purchases (transactions);
· Margin.
Knowing at least this minimum number of indicators, you will be able to take timely measures to increase the "sagging zones" and prevent your business from losing momentum.
Elena Trigub.
