If you’ve ever watched TV show Dragon’s Den, you’ll have seen many a pitch for investment disintegrate when it comes to getting down to the numbers.
Numbers are the language of business and so as a business owner you must be fluent in the lingo.
To keep your business growing here are four numbers you must know to keep your success on the right curve.
1. Number of leads: lead generation is all about the number of enquiries that you receive, appointments you book, clicks to your product page and event places you fill.
If you’re not keeping count of your number of leads, then how do you expect to figure out how well your marketing and advertising are doing?
Compile a total each week, and I think be stunned at how helpful it is when it comes to placing your next advert or running your next marketing campaign.
2. Conversion ratio: it’s a fancy name, but all it means is what percentage of your leads become new customers. If I phone you up for some info, then the next day place an order, I have been converted from a lead into another paying customer.
It sounds obvious, yet so many businesses don’t record conversion of leads into actual sales. If you want to know how effective you and your team are at sales, then get measuring. It's the first step on your path to improving your conversion ratio.
3. Average order value: this one is pretty simple, the average amount a customer spends with you on each order. Keep a close eye on average order value by recording it each week. The higher you can drive your average and the more sales you make, the more revenue you will get. Simple!
4. Transaction frequency: this how often a customer buys from you in a given period. Let’s make it 12 months to keep things simple. Once you get deep into those numbers, you can spot patterns and repeat buyers. That’s where working the numbers becomes very exciting. Now you can target and tailor your services to really boost sales. Have you noticed how Amazon always has great recommendations for you? You already know they're doing this to get you to buy from them again. What’s your strategy for getting you customers to buy from you more often?
Once you get into the numbers, the options that open up to you really are huge. As a business coach, I have seen hundreds of businesses transformed within one year. Their secret was firstly in recording and knowing their numbers and secondly working those numbers to get on average 30% increase in profit.
If you’re interested in discussing what you would need to do to work your numbers to boost your business, then get in touch with me on 0208 634 5611 for a free no obligation 15 minute telephone consultation. If you prefer please drop me a line at firstname.lastname@example.org