In this four-part series we have explored strategies to maximize People and Education; Delivery and Distribution, Systems and Technology to grow your business results. What could possibly be left? Doesn’t it feel like you have all the areas covered? Not quite.
If you have implemented systematic processes and redefined procedure how do you know its working? If you are not testing and measuring you will not know which change or changes made the biggest impact. Follow this simple rule. Don’t make change unless you can measure it. Don’t make sweeping change without isolating the key variables that are driving the largest results. But what should you be measuring and testing to continually refine your business to achieve massive results? Here is list of metrics to consider.
- Complete and Keep to Monthly and Yearly Budgets
- Measure Conversion Rate for Each Sales Person
- Complete a Purchasing System for All Internal Purchases
- Always Complete a Marketing Campaign Profit Analysis
- Complete Petty Cash System
- Keep a Record of Your Profit Margins
- Continuously Measure Number and Origin of All Leads
- Measure Your Average Dollar Sale for Every Team Member
- Record the Number of Transactions for Each Customer
- Complete a Monthly Balance Sheet
- Measure Key Performance Indicators (KPIs) in All Areas of the Company
- Complete Weekly Bank Reconciliation
- Daily or Weekly Update Cash Flow Statements
- Establish Daily Banking System
- Complete Regular Stock Control Check Ups
Measuring continue as you apply new sales and marketing strategies and tactics. Understanding who visits your website, how they are finding you and what they interact with are all critical to maximizing results.
What are the key metrics you need to consider? Again, there is a list;
- Web traffic sources
- Brand awareness
- Cost per lead
- Website traffic leads
- Returning visitors
- Online conversion rates
- Lead conversion rates
- Click thru rate
- Customer lifetime value
- Social Media Platform specific insights and measures
Testing works best in the marketing of your business. Testing and measuring are nothing new. You’ve probably been doing it all your business life. Remember the social media advertising you tried that ‘didn’t work’, and the radio spots that ‘did OK’. That’s all testing is. It’s about finding out what produces results and what doesn’t, then making decisions based on that. You must start asking people where they found out about you and record it. If you don’t, you’ll be in the dark forever.
Customers usually come from so many sources, it’s impossible to judge how an ad is working on sales alone. Perhaps you got more referrals that week, or there was a festival in town. Every time someone buys, ask them this question – ‘By the way, can I just ask where you heard about my business’. No-one, and I mean no-one will have any problem telling you.
Be vigilant and disciplined. You can’t test and measure half the time – you must do it every hour of every day. It’s not difficult – just remember to mark down a record after every customer interaction. And make sure any employees do the same – stress the importance of it and absolutely DEMAND that they do. Also, tell them it’s essential that they are honest.
If you don’t know where your customers come from, you’re really stabbing around in the dark. You have no real idea which marketing campaigns are working, how well your salespeople are doing or even how much each sale is ‘costing you’. Once you know these things, you have the power to make decisions, and good ones. You know which marketing campaigns to stop, or improve, and which to spend more money on. You’ll also know where your ‘key leverage point is’ – that is, the thing that you most need to improve. Perhaps your conversion rate is high but your leads are few – maybe it’s the other way around. Maybe you’re doing well in both lead generation and conversion, but you’re not selling enough high-priced items. Once you know which area needs work, you can start to make some new, well-informed marketing decisions.
If it seems like a huge project. You aren’t wrong. It is. But with the help of a professional business coach you can breakdown the project in rational and logical steps. A business coach wouldn’t give you a laundry list of ills, they will work with you and your staff to make meaningful and last change to your organization. Their objective eye will help you see what you may have missed or have avoiding seeing for a long time.
Having a Business Coach isn’t a luxury you don’t need, it is a necessity your business must have…Accountability is one of the greatest strengths of working with a Business Coach. Remember, it’s difficult to get a truly objective answer from yourself about your business, but your Business Coach will always tell you the truth, even if you don’t want to hear it. A Business Coach is better than a consultant for many reasons. With years of successful experience that can provide valuable insight, your Business Coach will help you develop long-term and short-term goals and strategies, as well as improve your business in areas that you might have overlooked. You may be able to survive in business without the help of a Coach, but it’s almost impossible to thrive…
ActionCOACH® has been helping businesses for more than 25 years and focuses clients on implementing logical and easy to apply systems and processes to grow their enterprises. Unlike pricey consultants that hand you a list of what you are doing wrong, an ActionCOACH will help you make real change in your business that is lasting and transformational. We have more than 1,000 globally and in nearly 70 countries. To learn more about ActionCOACH or to schedule a complimentary