Are you tracking and accessing metrics to improve you business? Here are 4 important metrics you should track to improve your business.
1. Total sales by time period
You should be tracking your sales by a time period that is relevant to your business (monthly, weekly, quarterly, annually). By tracking sales by time period, you know exactly how well you’re performing. You know if your sales are up or down versus the prior period, be it the prior day, week, month, quarter or year.
2. Sales by product or service
This metric tells you exactly what is performing (a.k.a. selling) and what’s not. This will help you to focus your business and marketing strategy. Declines in the sales of certain products might mean new product versions are required where as increases in sales means you need to support that product or service and make sure the capacity is there.
3. Revenue per sale
The easiest way to increase sales and profits for most companies is to increase the average revenue per sale. Tracking this metric will help you devise strategies to increase your revenue per sale and track the success.
4. Sales by lead source and activity
This metric will help you focus your marketing and advertising spend. The key here is to spend more on the advertising or “lead sources” that produce the most sales, and to stop wasting money on sources of leads that don’t. By tracking the lead sources for your sales, you can optimize your lead generation.
I also recommend trying to track sales by activity as well. This can include sales per click or impression (for digital marketing), sales per lead or phone call and networking or events. Most sales people say that sales is a numbers game. If you go to more events, speak to more prospects, and issue more proposals you’ll close more sales. It’s true. You need to track the results and effectiveness of each of these efforts to see what is working so you can do more of it. You also identify what’s not working, and can fix it right away.
5. Revenue per sale
The easiest way to increase sales and profits for most companies is to increase the average revenue per sale. Tracking this metric will help you devise strategies to increase your revenue per sale and track the success.
The goal of tracking metrics is to provide you with the information and ability to alter business and marketing strategies to increase your revenue.
