“If you can’t measure it you can’t manage it.” If you want to have a sustainable business you need to have a strategic plan, which includes key goals and objectives, and a way to measure your progress.
Without these elements you are relying solely on luck.
What you measure is just as important as having a plan and executing it. There are many business measures and these vary based on the business. This could include everything from success of advertising campains to farming metholds. These should be tracked for obvious reasons in order to know what works and what doesn't work. Wouldn't you agree, however, that these are measurements of things that happened in the past. They will help you plan the future. But, only some may be predictive of the future but some might not. Make sure you know what predicts the future.
Predictive analytics is the best way to step in and create your business future. It is far better to rely on predictive measurements to make decisions than to rely solely on measurements of the past.
Let’s start with the measurement of customer loyalty. Customer loyalty is the measurement of how likely customers are to recommend your product or services to others. Customer loyalty has a direct correlation to future sales and profits.
Another forward-looking measurement is networking and lead development. What is the activity and frequency of activity that is required to have one conversion to a sale? It is important for you to measure the rate of activity that you need to get desired sales results. This rate of activity varies by industry, business, and business owner. It is important to track your sales development activities to determine the right level of activity to achieve acceptable results.
It is important to measure the results of your marketing and advertising activity. Business owners can waste substantial amounts of money on unfocused marketing and advertising. Before creating a marketing strategy make sure that there are measurements such as web site visits, converted sales, response to mailing, and the like.
If you have employees or a team of agents make sure you measure the effectiveness of your workforce. This is done through clear description of duties and then holding your employees accountable for achievement of goals. Also, you should measure your staff engagement which is the employee side of your customer loyalty measurement.
Organize all the measurements that matter into one area and create a “dashboard” to monitor overall results. This serves the same purpose as your car’s dashboard. It is an overview to let you know about any malfunctions. You keep a dashboard to measure your performance against the goals you have set. In addition, you use it to track trends and make necessary adjustments in activities as needed.
This process really works. History has shown that businesses that have written goals, and measure and track those goals will outperform the competition.
Are you ready to take your business to the next level?
For a similar post on our web site see PREDICTIVE MEASURES CAN CREATE BUSINESS SUCCESS.
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