Growing a small business is extremely challenging. With all of the competition in the United States, small business owners have to be motivated and meticulous to accomplish their growth goals. Tracking your progress is crucial when trying to figure out what is working and what is not.
This is why monitoring certain business metrics is so important. Are you unsure about what metrics you need to track? If so, check out the useful information below.
1. Be Sure To Track Return to Ad Spend
One of the best ways to inform consumers about the products/services a business offers is by engaging in online marketing campaigns. As a business owner, you need to make sure the money you’re spending on advertising is actually paying off. This is why monitoring return on ad spend metrics is important.
Return on ad spend metrics can be assessed by documenting rising sales from the advertising and subtracting it from the total cost of these campaigns. If you find that certain marketing campaigns aren’t providing a solid return, you need to either alter or discontinue them.
Continually investing in marketing campaigns that aren’t producing results can be disastrous for your business. Rather than making this mistake, you need to track return on ad spend metrics closely.
2. Overall Sales Revenue
The amount of money that comes back to your business as income is referred to as sales revenue. Many view sales revenue as the easiest metric to monitor. Monitoring this metric is easy because all you need to do is add up the sales you have on a monthly basis.
Monitoring sales revenue will help you see how well you’re competing in your market. If you find that monthly sales revenue is shrinking, you have to pinpoint why. Addressing profitability issues quickly is the only way to avoid long-term damage to your business.
3. Consider Customer Retention
Nearly 99 percent of all businesses in the United States are considered small businesses. The profitability of a small business is solely dependent on the number of customers they have. If you’re constantly losing customers to competitors, it is only a matter of time before you have to close your doors.
Instead of allowing the loss of customers to come as a shock, you need to monitor customer retention metrics closely. Since the cost of acquiring new customers has grown substantially in the past few decades, it is important to keep current clients loyal.
4. Monitor Lead Response Time
One of the main goals you should have when engaging in online marketing campaigns is generating sales leads. As sales leads are created with the help of these campaigns, you have to make sure your team is responding quickly. When a person reaches out for information about your company, you need to make sure they get what they need in a timely manner.
This is why monitoring lead response time is so important. If you notice that lead response times are too slow, work with your team to make improvements. By increasing lead response time, you can convert interested consumers into actual customers.
5. Website Traffic
If you’re trying to use the power of online marketing to grow your business, then you have to monitor website traffic. This metric can give you a feel for how well your marketing campaigns are performing. The more website traffic you’re able to generate, the easier it will be to grow your business.
Using a mix of both organic and paid marketing campaigns is crucial. By utilizing the marketing tools at your disposal, you can reach a wider audience with your brand message.
If you are passionate about growing your business, then monitoring the business metrics covered above is imperative.