Have you ever come home late at night only to find the power has gone out in your house?
You have to fumble with the keys using the flashlight from your phone which only has about 2% battery left. You walk in carefully and unsure.
It’s your house, you’ve lived here for a while, maybe even years, but there is something about the dark that makes us lose confidence even in the things that we are so familiar with.
Being in the dark means you have to careful where you step. You are not entirely sure there isn’t something there that can trip you up. Or perhaps something has been shifted without you being aware and the path you thought was clear, now has an obstruction.
Where am I going with all this?
Running your business and not tracking your key numbers is a little like running your business in the dark.
You put in so much effort, but it’s hard to see exactly what’s working and what’s not.
If that’s you, if you feel like you are running your business in the dark, fear not, because that’s where metrics come in. Tracking the right metrics can shed a whole lot of light on your business and help you make decisions that lead to success.
6 metrics every business should be tracking:
1. Revenue
Revenue is the heartbeat of your business. It’s the lifeblood that keeps everything moving and grooving. Just like how you track your own heartbeat to make sure you’re healthy, you need to keep an eye on your business’s revenue to make sure it’s in tip-top shape.
Tracking your revenue allows you to see where your money is coming from, how much you’re making, and what areas of your business need a little extra love. With this information, you can make smart decisions, invest in the right places, and grow your business like a boss.
2. Profit
Ok, let’s be honest, if we are not looking to make a profit in our business, then we are killing time (and money) with a really expensive hobby. That’s not me, and pretty sure that’s not you either. Much like revenue, profit is very important and knowing how much money you are taking home at the end of the month, is paramount to business survival.
3. Customer Acquisition Cost (CAC)
Think of CAC as the cost of finding your prince charming. This metric measures the cost of acquiring a new customer, including all sales and marketing expenses. By keeping tabs on your CAC, you can make sure you’re spending your marketing budget wisely and find the most effective ways to reach new customers.
4. Website Traffic and Engagement Metrics
Your website is your virtual storefront, and it’s important to know how visitors are interacting with it. Metrics such as page views, time on site, and bounce rate can help you see what’s working and what’s not. By tracking these metrics, you can make sure your website is doing its job of attracting and keeping customers.
5. Social Media Engagement
Similar to your website traffic, knowing how your audience is interacting with your social media content gives you a better idea of which posts convert and which are just wasting your time and money.
6. Net Promoter Score (NPS)
NPS is like a popularity contest, but for your business. This score measures customer satisfaction and loyalty by asking customers how likely they are to recommend your business to others. A high NPS score means happy customers and lots of word-of-mouth marketing, which is a recipe for success.
Why Metrics Matter
Now that you know what metrics to track, you might be wondering why it even matters. Here’s why.
- You can confidently make data-driven decisions: No more guesswork! With metrics, you can make informed decisions based on actual data.
- You can improve your planning: You’ll know exactly how to allocate your budget and plan your sales and marketing efforts.
- You can increase your visibility: Metrics give you a clear picture of your business’s performance, so you can see what’s working and what’s not.
- You get better customer experience: By tracking website engagement metrics, you can make sure your customers are having a great time on your site.
- You increase our customer loyalty: Happy customers are loyal customers. By tracking your NPS, you can make sure your customers are always happy.
So, to wrap up our discussion here, tracking the right metrics can help you make informed decisions, grow your business, and have a little fun along the way.
No more fumbling with dim flashlights, let’s light up the darkness and start tracking! To help with this I’ve created a basic business metrics dashboard that you can download by filling out the form below.
