When it comes to growing your business, there are a few metrics you absolutely must know, constantly track and improve.
The reason why is simple: You cannot grow and improve your business if you are not tracking your numbers. If you try something new (a new campaign for example), how are you going to know if it´s getting you BETTER results than what you´ve done before, if you don’t know exactly what results you´ve gotten before, because you´ve never tracked your numbers?
So, here is what you should track in order to be able to grow your business.
Obviously, you need to know your Return On Investment, both in terms on invested money and invested time! It´s not only vital to know how much money it´s costing you to get a new client but also how much time you need to invest to get a client.
Depending on your client acquisition strategies and traffic sources you need to know the metrics of each step.
For example: Let´s assume that you have 1 traffic sources: Google Adwords. Ideally, for a healthy business you should have at least 3 traffic sources, but for this example we´ll work with just one.
Let´s say the Adwords strategy works like that: people find you on Google, click your ad, go to your website, call your number, get a one-on-one meeting and become your clients.
Now, it this case you need to know:
- How many of those who do a search on Google actually click your ad,
- How many of those who click your ad actually call you,
- How many of those who call you come to a one-on-one meeting and
- How many of those that came to a one on one meeting actually become clients.
And of course you need to know the costs (for the ads), the time you spent (for creating the ads and for the one-on-one meeting) and the return you get from those who became clients.
Ideally, you should now those metrics as percentages. Let´s say that from 100 people who click your ad, 40 % call you, 30% come to a meeting and 10% become your clients. Those are the numbers you must know, constantly track and try to optimize and improve.
And if you have more than 1 traffic sources, which you absolutely should, you´ll need to track those numbers for each traffic source, so that you can see, if all the traffic sources still make sense or if you should drop some of them an try some new traffic sources.
Hope this helps!
To your success