Small business metrics demonstration
Small Business Metrics Demonstration- It has been said that if you can't measure it, it can not be managed. This is how metrics are used by Fortune 500 companies and small businesses. For instance, how many new customers did you have last month? Their are many successful ways to generate leads, but unfortunately, it's the follow through where most companies fail. Here is a small business metrics demonstration:
So if your company generates 100 leads a month, and only one new customer is the result, your success ratio is .01 (point zero one).
Now, add up the true cost of acquiring that customer - cost of generating the leads per month, man-hours for developing proposals and brochures, printing cost of brochures, mail, telephone calls, advertising costs, travel costs, etc. This cost is the customer acquisition cost.
Now you have two small business metrics for measuring lead generation:
- Number of new customers per month versus leads generated
- Acquisition cost for each customer
Monthly, you can review these two metrics to give you a snapshot on how well you are improving:
- the number of leads generated
- how many new customers you have
- how well your sales team is closing each lead
- how much each new customer costs
- and hopefully, that the sale generated is profitable in regards to the revenue generated from the new customer.
Now you have a numeric basis for measuring leads and customer acquisitions. The small business metrics demonstration above shows what small business metrics are all about: numerically measuring business practices.
Did you notice how many times we used the words "small business metrics demonstration?" This is known as keyword density, a measurement of how many times a particular phrase is used on a web page versus the total number of words. Keyword density is just one of the many ways you can help search engines realize that this web page is about the topic of small business metrics demonstration. It is not as important as it used to be, but it doesn't hurt! (In case your wondering: eight times, including this paragraph!)
Small business metrics demonstration by Cliff Koraska
