If you want to effectively manage your business, consider key indicators!
This is not only a way to identify the true effectiveness of the business, but also the opportunity to fix everything if the company loses momentum.
- How much is your customer?
I ask this question to entrepreneurs who turned to me for consulting services, and I meet with a puzzled look:
- Yes, somehow did not consider ...
"How can I find out?"
- Why do you need this?
Here are a series of usual answers. In the last year of work, only ONE business leader was able to bring the necessary statistics.
Meanwhile, we all well understand: It is impossible to manage what is not counted. If we do not track the conversion of each advertising source, then most of the budget merges into a void. If we do not have information about how attracting a new customer is more valuable than keeping an old one, we will not strive to improve the service, the quality of the product, train the personnel, and build a customer-oriented system in the company. Clients in the bulk will be "one-time", not permanent, forcing the head of business and the marketer to come up with more and more ideas to attract customers to the business.
First, with what I start work in consulting,These are measurements of key indicators. The entire management structure of the company with interest and a bit of malice observes this process, but how does the expression of the faces of these people change when we get specific numbers! Often it turns out that the cost of a new client is almost equal to the amount of the purchase made by him, after which, as I said above, he leaves the company forever. Is it any wonder that business is running at almost zero, from time to time rolling down into a minus?
Meanwhile, to bring in a good plus company,Balancing in the break-even point, is not at all difficult. For this, three components should be analyzed and adjusted: the quality of the product or service, the work of the staff and the effectiveness of advertising. Qualitative work on these three "pillars" is guaranteed to increase business incomes by 30-50%. In my practice, it is not uncommon for the above measures, reinforced by the introduction of the "wow service" and post-sales support of clients, double the company's profits.
So, what are the indicators that should be considered constantly in your business?
· The number of customers who responded to the advertisement (potential customers) -
· The number of customers who made a purchase due to this advertisement-
· Average check for purchases for the day, week, month, quarter, year-
· Number of purchases (transactions) -
Knowing at least this minimum number of indicators, you will be able to take timely measures to increase the "sagging zones" and not allow your business to lose momentum.