These principles of measuring what matters date back to 1992. But they hold as true as ever now. The only thing that has changed is the technology to have your data available in real time, in dashboards.
Without focus you can find yourself chasing the small stuff. Learn how to sift the wheat from the chaff – know what’s important and how to distinguish between trends and anomalies. The 80:20 rule applies!
Obviously, you need to keep an eye on your basic financial health by tracking key data such as revenue, operating expenses and cash flow. Other data such as sales funnel conversion rates and customer churn are also telling.
Monitoring your business’ vital data helps ensure you stay in the black, but the key metric that determines your long-term success might be something more difficult to measure such as customer lifetime profitability.
Understanding who are your most valuable customers, and whether you’re doing the right things to attract and retain them, is the kind of valuable insight which can take your business to the next level. Listening to this data can help drive all your business decisions and focus your efforts in the right areas in order to improve the bottom line by working smarter rather than simply working harder.
Once you know how to interpret your business data you can use it to refocus your marketing spend, customise your special offers, realign your customer retention efforts and even change your mix of products and services in order to improve the metrics you’ve determined are the key to success.
If you would like to see how you can monitor what matters in your business, in real-time and in easy to read, easy to share dashboards, contact us.