If you’ve ever wondered how tracking metrics in your business can increase your profit, you are in the right spot. People usually bristle when they think about tracking numbers, but it’s not that bad. You simply need to decide what you need to track, how often to record the numbers, and who will complete the task.
DECIDE WHAT YOU NEED TO TRACK
There are several different areas you need to track in your business if you want to grow. You want to focus on the KPIs (Key Performance Indicators) in each area to reach your goals. Consider the areas of your business that bring in revenue. These areas include marketing, which bring in leads, and sales, which is when someone purchases your service or product. By tracking your KPIs, you may discover areas in your business to modify or even adjust your goals.
Another important area to track is your finances. By tracking this area, you may realize you can unsubscribe to software tools that have overlapping features. Or, you may decide to increase you income goals.
When you choose which areas to track, ask yourself, “What can we improve?” Asking this question will help you determine the numbers you need to keep your eye on.
Marketing is the area of your business that provides visibility and brings in leads. There are various forms of marketing, but the most common in online business are social media, your website, and email marketing. As you track these areas, you will discover what works best to increase your businesses visibility and which things you need to work on. Time is limited so if you are going to create great content, you want to be sure that it will grow your audience.
Below are some suggestions for what you might consider tracking in each marketing platform so you can determine where your best leads are coming from.
- total followers/connections
- number of posts
- likes on posts
- engagement on post
- number of pins/repins
- total users
- new users
- return visitors
- traffic from each marketing platform (i.e. Facebook, Instagram, PInterest)
- top 3 pages that are visited
- top 3 blog posts (helps determine content your audience likes)
- total subscribers
- new subscribers
- number of unsubscribers
- number of campaigns sent
- open rate
- click rate
- sales from email marketing
The number of sales you get will be dependent on your number of leads. Therefore, once your marketing efforts have increased your visibility, you need to track your sales. After all, your sales is what keeps you in business. Some things to track include:
- total number of leads
- inquiries from website
- discovery calls booked
- number of invoices paid
If you find that the numbers are not good, you will know that you need to focus on your messaging on your website or packages that you offer. For every 100 leads you get, you want to have at least two sales calls. Likewise, you want to convert one out of every six sales calls that you have. If you find this isn’t happening, evaluate your content to determine if it is priming your audience or if you are telling your potential client how you will help them during the discovery call.
Of course, your finances are a huge part of running a business. You need to keep everything in order so you know the health of your business at a glance. There are many things you can track in this area. Some of the most important are listed below.
- total monthly revenue
- monthly recurring revenue
By monitoring these numbers, you may find that you can decrease your expenses and operating costs. Or you may decide to set a new income goal. It does take some time to track everything, but in the long run, it is worth it.
HOW OFTEN SHOULD YOU GATHER DATA
Depending on what you are tracking, you will want to pull numbers daily, weekly, monthly, or even quarterly.
Some numbers need to be looked at often because you want to make quick changes. This might be the number of likes on a social media post because you are trying to determine what image and copy resonates most with your ideal client. Those are numbers you will want to look at daily or weekly.
For other areas, it is okay to check monthly or even quarterly. If you track the number of sales for your coaching program that you hold four times a years, it is okay to pull those numbers quarterly.
Think about what changes you are trying to make and then determine how often you need to pull numbers.
ONE MORE THING TO CONSIDER WHEN TRACKING METRICS IN YOUR BUSINESS
Once you decide what you want to track and how often in your business, the last thing to decide is who will track the metrics. If there is a virtual assistant on the team, she should be the one to collect the information and run the reports. Once that team member collects the information, the business owner and OBM can analyze the data and make decisions about what can be done to improve that area of the business.
By putting a system in place to track various metrics in your business, you will discover areas that you can work on to improve your business. In addition, you will have a better idea of the goals you should set to grow your business.
P.S. If you’d like help figuring out which metrics you should be tracking in your business, I’d love to help you. Book a free discovery call with me today. We’ll chat about what you are needing and how I can help you. Then you will choose a time for a strategy call so we can take a deep dive into your business.
P.S.S If you need some help with setting goals that you can actually accomplish, check out my blog post on that topic.