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Generate Meaningful Metrics

This month I am writing a series of posts on “Your Next Best Three Steps for 2011″ – or a quick guide to help you put the systems or “habits” in place to support your business growth goals.  Click here to read prior posts on creating growth goals and assigning resources.

Step 3: Generate Meaningful Metrics.

Nothing is more motivating than seeing real progress toward your goals. But you cannot see how far you have gone without having gauges or metrics in place to measure your mileage. Sales are an obvious indicator, but this measure is usually too late in the sales cycle for adjustment.

Ideally you want to put in place metrics at each step along your sales funnel. In this way you have time to adjust or respond to real changes in customer demand, as well as improve on “conversion”. The following are examples of the most vital business measures:

• Inquiries/General Awareness: Website visits, Store Visits, Phone Inquiries, media placements
• Prospects (actions taken indicating interest in your company/products): Responses to Promotions or Offers, Newsletter sign-up, RSS feed sign-ups on blog
• Sales Conversions: Sales by product or service and by target market, % of contract wins
• Customer Base: Customer Retention, Number of new versus existing customers
• General Fuel: Cash flow, inventory turns, profit margins, expenses

Practically, start with a few key meaningful metrics that you will track at least monthly. Seek out automated processes (or assign a staff member) so you see these key performance indicators consistently. Over time, you can build with additional metrics.

And click here if you would like to hear a recording of our webinar on efficient, effective marketing and sales planning.

What are your plans for gaining or reallocating resources in the New Year?  Share in the Comments section below.

Jeanne Rossomme – President, RoadMap Marketing Jeanne uses her 20 years of marketing know-how to help small business owners reach their goals. Before becoming an entrepreneur, she held a variety of marketing positions with DuPont and General Electric. Jeanne regularly hosts online webinars and workshops in both English and Spanish. www.roadmapmarketing.com | @roadmapmarketin | More from Jeanne