Quantifying the success of your business should never be a guessing game. No matter what type of business you are in, you should know that measuring business success is a must! Use numbers to your advantage and get the most out of the work you do.
Listen, we don’t all love math. But measuring business success with important metrics is a piece of cake once you get the hang of it.
Why Is Measuring Business Success Important?
Properly measuring your business success (versus acting on a hunch or an assumption) could mean the difference between your business thriving or crumbling. Using proper measurements to steer your advertising efforts and website layout saves you a ton of work fixing the mistakes that come when you work without them.
Have a look at these reasons to start measuring metrics to guide your business.
You’ll Understand Your Strengths and Weaknesses
For starters, measuring business success gives you the clearest picture of what you are doing well at and what needs the most work (at least for the time being). Numbers don’t lie, so it will be hard to unsee the truth once you digest it.
For example, even if your social media pages were drawing loads of attention in the beginning of your business adventures, careful measurements might reveal that they are no longer doing that. Measuring business success in this scenario could completely flip the switch on your priorities.
You Get a Better Picture of Where You Are Financially
Rather than viewing your financial statements piece by piece, take the time to analyze how money fluctuates within your business or your client’s business. All metrics have a story to tell if you take the time to understand where the numbers are coming from.
Your financial health can be broken down into a few important statements:
- Balance sheets keep you up to date on the money you need to pay
- Income statements are where you can find your profits (and losses)
- Cash flow statements indicate the moola you have for immediate purchases
It may help you to break your financial paperwork into smaller categories and represent them separately so you aren’t getting confused month after month. After a while, you might come to enjoy measuring business success or failure in this black-and-white way.
Measuring Business Success Help You Shift Marketing Strategies as Needed
Measuring business success is how top businesses know what to do next to draw in the most attention and bring in the most money. A glimpse at a properly formatted metrics dashboard gives great insights about unexpected trends, website troubles, or big wins on a marketing campaign.
Say for instance that you were preparing to invest thousands of dollars on a billboard to promote new business, but realize that your Instagram page tripled your website traffic in the last quarter! An observation like that might inspire you to pour money back into your social media ads instead of splurging for the roadside ad.
You Can Identify What Is Drawing In New Clients
Another advantage to measuring business success is that you can uncover how many new users or new consumers are interacting with you each week. Some types of businesses rely on a steady influx of new buyers, while other types of businesses have long-term relationships with existing clients.
No matter what type of business you are working with, measuring how and when new clients come up is important. You don’t want to wake up one day and realize that your business is struggling because you don’t have enough leads.
How To Start Measuring Business Success With Metrics
So, you want to start measuring business success? Have a look at these valuable tips to help get you started off on the right foot.
Set Goals For Your Business
Before you can identify which business metrics matter for your business, you have to outline your business goals.
- Do you want to increase web traffic by 10% this quarter?
- Are you trying to hit a certain profit dollar mark?
- Do you hope to take on more client referrals?
The list goes on and on. No matter what the finish line looks like for you, paint a clear picture of it before you begin measuring business success.
Select Your Priority KPIs
The goals that you set will dictate which key performance indicators matter the most for you. For example, if your goals are to improve the flow of web traffic on your website, your KPIs should relate to which web pages get the most clicks and where your users (or your client’s users) wind up in the end.
Some businesses need data from their social media pages while others are strictly looking at dollar figures to reach their goals. Do what makes sense for you.
Measure Quantitative Metrics
All businesses speak the language of money money money! Even if your goal is to help people on a more personal level, you still need to consider your income to afford technology, a team, and their time.
When measuring business success, keep an eye on the money you are making (or not making) regularly. Make sure that the money you are spending is justified and doesn’t exceed the money you bring in.
Consider Adding In Qualitative Success Metrics
Are your customers or clients happy? Since you’re putting in so much effort to find your people, you should also take a pause to hear about their experience with your brand.
You can find out a lot about a business through brief surveys, for example. Listen to what your customers have to say—you need them to stay afloat!
When it comes to measuring business success, staying relaxed and focused is key. No matter how much you love (or don’t love) working with numbers and graphs, you will soon find how valuable it is to make data analysis a part of your regular working routine.
Ready to make measuring business success way easier? Our Measure and Maximize program makes it so simple to keep tabs on all of the numbers that matter. You’ll be able to set up custom Google Analytics dashboards that give you an at-a-glance or in-depth look at your business metrics in a snap, depending on your needs (in an easy-to-understand, visually-oriented format)!
Ready to move the needle forward in your business? Start here:
- How To Determine A Client’s Lifetime Customer Value (& Why You Should)
- Why Measuring Marketing Effectiveness Is Important (& How To Get Started)
- How To Use Data To Skyrocket Your Business Growth This Year
- 8 Business Mistakes To Avoid In Order To Be More Successful