PART 4 – Test & Measure
Now that you’ve implemented systematic processes and redefined your procedures, how do you know its working? If you’re not testing and measuring you will not know which change (or changes) made the biggest impact. Here is a simple rule: Don’t make changes unless you can measure it. What does that mean? Don’t make sweeping change without isolating the key variables that are driving the largest results. But what are the things I should be measuring and testing to achieve great results? Here is list of some key metrics to consider including in your scorecard:
- Complete and Keep to Monthly and Yearly Budgets
- Always Complete a Marketing Campaign Profit Analysis
- Measure Conversion Rate for Each Sales Person
- Keep a Record of Your Profit Margins
- Complete Petty Cash System
- Complete a Purchasing System for All Internal Purchases
- Continuously Measure Number and Origin of All Leads
- Measure Your Average Dollar Sale for Every Team Member
- Record the Number of Transactions for Each Customer
- Complete a Monthly Balance Sheet
- Measure Key Performance Indicators (KPIs) in All Areas of the Company
- Complete Weekly Bank Reconciliation
- Daily or Weekly Update Cash Flow Statements
- Establish Daily Banking System
- Complete Regular Stock Control Check Ups
The measuring process should continue as you apply new sales and marketing strategies and tactics. Understanding who visits your website, how they are finding you and what they interact with are all critical to maximizing results.
What are the key metrics you need to consider? Again, here are some great examples –
- Web traffic sources
- Brand awareness
- Returning visitors
- Website traffic leads
- Cost per lead
- Lead conversion rates
- Customer lifetime value
- Online conversion rates
- Click thru rate
- Social Media Platform specific insights and measures
Testing works best in the marketing of your business. And if you think about the process of testing and measuring, it should not be a new concept. In fact you’ve probably been doing it all your business life. Remember the social media advertising you tried that ‘didn’t work’, or the print advertising that just did ‘OK’? That’s all testing really is. It’s about finding out what produces results and what doesn’t, then making decisions based on that. You must start asking people where they found out about you and record it. If you don’t, you’ll be in the dark forever.
Be vigilant and disciplined, as well as your team. You can’t test and measure half the time – you must do it every hour of every day. It’s not difficult – just remember to mark down a record after every customer interaction. And make sure any employees do the same – stress the importance of it and absolutely DEMAND that they do. Also, tell them it’s essential that they are honest.
Customers usually come from many sources, it’s impossible to judge how an ad is working on sales alone. Perhaps you got more referrals that week, or there was a conference in town. Every time someone buys, ask them this question – ‘By the way, can I just ask where you heard about my business’. No-one, and I mean no-one will have any problem telling you.
If you don’t know where your customers come from, you’re really stabbing around in the dark. You have no real idea which marketing campaigns are working, how well your salespeople are doing or even how much each sale is ‘costing you’. Once you know these things, you have the power to make better decisions. You will know which marketing campaigns to stop, or improve, and which to spend more money on. You’ll also know where your ‘key leverage point is’ – that is, the thing that you most need to improve. Perhaps your conversion rate is high but your leads are few – maybe it’s the other way around. Maybe you’re doing well in both lead generation and conversion, but you’re not selling enough high-priced items. Once you know which area needs work, you can start to make some new, well-informed marketing decisions.
This may seem like a huge project. And you aren’t wrong. It is. But with the help of a professional business coach you can break down the project into rational and logical steps. A business coach wouldn’t give you a laundry list of problems and walk away, they will work with you and your staff to make meaningful and lasting changes to your organization. Their objective eye will help you see what you may have missed or have avoided seeing for a long time.
Having a Business Coach isn’t a luxury you don’t need, it is a necessity your business must have…Accountability is one of the greatest strengths of working with a Business Coach. Remember, it’s difficult to get a truly objective answer from yourself about your business, but your Business Coach will always tell you the truth, even if you don’t want to hear it. If you’ve ever heard the quote: “You can’t see the painting when you’re the one in it” – that holds true for most business owners.
Also a Business Coach is more effective than a consultant for many reasons. With years of successful experience that can provide valuable insight, your Business Coach will help you develop long-term and short-term goals and strategies, as well as improve your business in areas that you might have overlooked. You may be able to survive in business without the help of a Coach, but it’s almost impossible to thrive…
Review of the 4-Ways To Build Business Success
PART 1 – TEAM & EDUCATION
PART 2 – DELIVERY & DISTRIBUTION
PART 3 – SYSTEMS & TECHNOLOGY
PART 4 – TEST & MEASURE
Click here to learn more about ActionCOACH and our business coaching and education programs. You can also schedule a 15-minute discovery call with one of our certified business coaches, or contact me directly at firstname.lastname@example.org.
I look forward to working with you and your business!