Gut feelings and good luck are not what achieves results in a fiercely competitive business environment. Data and information are the currency of good business strategy. Selecting a handful of indicators that can quickly take a temperature check on your business in real time gives piece of mind and if needed, an ability to respond and pivot. Grant Doyle from Exec Force shares his 5 fundamental principles for business growth:
- Lead generation, product mix and optimisation: Knowing the impact your product and people are having on buying decisions is more important than having the best marketing plan or website. Analyse what triggered the sale, what product was purchased and how they found you.
- Conversion rate that is mapped, test and measured and given as a percentage of Leads: Gaining a customer is not a transaction that ends with the sale. It is the beginning of a relationship. Seek to build on that relationship to secure the next sale, more leads and increased revenue.
- Average Dollar of Sale. This is your return on investment. We recommend the dollar value of the average sale be compared to past sales, industry modelling and client appetite. When you have a deep understanding of this metric, then you are better positioned to focus on elevating the perceived value of your brand.
- Number of transactions: Less is NOT more when it comes to business growth. The number of transactions is directly related to whether clients know you exist. If they know you exist, why are they not choosing your business? If they are buying, WHY AREN’T THEY BUYING MORE?
- Margin management: Businesses do not thrive on thin air and good will. There is rent, wages, marketing, operational support and more that needs to be factored into any business growth strategy. Consider the overhead growth needed to support your goals for business growth. Also consider the overhead impacts from heavy price discounting.
There is no one size fits all for business metrics. For advice on the most relevant markers for your business, Verity Consulting partners would be happy to assist.
(inspired by Exec Force)