Every entrepreneur has one thing in common: they want their business to be success.
It does not matter in what industry they work, in what products they sell, or what problems they solve. Every entrepreneur wants to be the best.
Most people know what success is … but what is success?
Contrary to popular belief, it does not have to be complicated. Because while success may seem slightly different depending on what you do, almost every business can pursue success with one thing in mind: the right metrics.
This is a growth measurement method that Monique Morrison, co-founder of Jeronimo Digital Solutions and DigitalMarketer ELITE Coach, uses every day for her clients. In his recent DigitalMarketer workshop, he talked about the power of metrics and how you can use them to protect your business growth.
Why high-level success statistics are important
Using the right metrics to monitor the performance of your business is a surefire way to determine if you are expanding your business. It is traceable, concrete, easy to understand, and eliminates the assumptions of the process.
You can keep track of where you are now and how it compares to this time of last month or last year. Most importantly, you can use these numbers to project the success you will achieve a year later.
If we map out what went right and what went wrong in our company, it’s good to look back. But it does not matter if we do not understand how we can apply what we have learned in the past to the future. If you keep the statistics correct, the milestones and references you need to achieve are listed to help you identify exactly what you could have done in the past.
Reliable ways to quantify success should not be underestimated. In an ever-changing business world, where you always want to be one step ahead of the competition, it’s better to look inward than outward. By tracking the success statistics, you can concretely follow, discover what really works and what does not work well.
The important thing is that you do not have to spend a penny to keep track of your stats. It just takes time and a little effort.
Which statistics are important?
To be honest, there are many criteria that may interest your business.
However, there are general statistics that can be checked by any company. But it also depends a lot on whether you are a project / service-oriented business or an e-commerce/retailer.
Companies related to projects and services must follow the following:
• Monthly turnover
• Monthly sales
• Lead conversion rate
• Participation/cancellation fee
• Landing Page Conversion Rate
• Average cost-per-click and click-through rate
E-commerce and retail activities should follow:
• Monthly turnover
• Monthly sales
• Unique visitors per month
• Average cost-per-click and clickthrough rate for ads
These are the most important criteria for your business because you can see when things are going well. These statistics are very broad and represent the highlight of all your work. This means that everyone translates money or puts it in the bank account of your business.
Let’s take a closer look at why these statistics are important.
Monthly sales are the yardstick every business, regardless of sector or niche, must follow to measure and plant growth. It is literally the number that indicates how much money is flowing into your business and what you will definitely pay attention to. Without doing something about it, you are not prepared to do even a basic analysis.
There is only one part of this statistic that can be explained: expensive. Some companies choose to formally assess their earnings annually, but the monthly assessment is more effective. This way, you can see how your earnings vary with different promotions or marketing strategies and learn how to analyze and adjust those strategies in a timely manner.
If you try to monitor it weekly, you run the risk of responding to insignificant changes. And the last thing you want is to go crazy.
Monthly monitoring is the right way. Look at your books or statements to find these numbers. Ask if you have a designated accountant. It’s that simple, but it’s very important.
Count your monthly sales
As with turnover, it is important that all companies keep up. Your sales allow you to see how much you are selling and how much money you are generating, but it also adds important context to your earnings.
This is because this measure takes into account the number of sales, not the amount of money. It allows you to analyze your income and understand whether you are converting very small sales or some sales into very high dollars. This allows you to analyze the type of audience you need to optimize your marketing plan.
You can also use it to find customers who offer a lot of sales so you can send them an exclusive offer as a little thank you.
To find this number, go to your eCommerce platforms or check if you are a physical sector.
Average advertising cost per click
With these two metrics, you can determine the effectiveness of your online advertisements. It not only determines the amount you pay to view it but also how often people click and interact with it. This is important because digital advertising is one of the pillars of any good marketing strategy and essential for growth by optimizing your ads.
To find these numbers, you just need to look at the platforms you advertise on. Facebook and Google, as well as any other platform you are on, will provide these statistics. All you need to know is what it means.
Unique visitors per month
Finding unique visitors is an important task for e-commerce companies as their business is completely online. This is the same reason brick-and-mortar businesses like to control how many people enter and exit the store. If you can’t get people through the (virtual) door, you never have the chance to sell anything.
Knowing how many unique visitors there are can help you determine the effectiveness of your ads and SEO, as well as the ability to convince your landing pages and products. If people aren’t visiting your site, you know that changes can happen to drive more traffic and, in turn, increase sales. If your visitors are high but your sales are low, you know your ads and snippets aren’t the problems.
You can find these statistics on your web dashboard, as well as through Google Analytics and even on some of your advertising platforms.
Lead conversion rate and delivery/cancellation fees
While these statistics differ, they are the same, mainly because they can easily be verified at the same time.
For industries based on projects and services, a large part of their work is lead generation. Your goal is to create clues and turn them into customers, and these metrics will help you determine exactly. Do you turn clues into customers?
Of course, you want your conversion rate to be high and your cancellation rate low. But it’s important to keep track of both, as this will give the most complete picture.