Use KPIs to Drive Your Business
Wondering if your business is cruising in the right direction? If you’re like most savvy small business owners, you’ve got a good grip on your financials – from statements and sales to expenses and receivables. These numbers give you a snapshot of where you’ve been and where you stand at any given moment. However, relying solely on these figures to steer your business is a bit like driving by staring into the rearview mirror. Sure, you know where you’ve been, but what about the road ahead?
That’s where KPIs (Key Performance Indicators) come into play – those crucial metrics that go beyond the financials. To predict the future, you need to broaden your scope and pay attention to numbers specific to your business. Think about the steps potential customers take before making a purchase. Measure pre-buying behavior, set goals for actions like website visits, webinar attendance, newsletter sign-ups, and proposal requests. If any of these metrics fall short of the goal, it’s a signal that adjustments are needed.
For instance, consider web traffic and search position. A dip in overall traffic might not be a big deal, but a sustained decline indicates something’s off. Changes in traffic patterns often foreshadow shifts in proposal requests a month or two down the line. It’s like peering into a cloudy crystal ball of the future.
Webinar attendance is another indicator, especially for firms using training programs as lead generators. Keep an eye on registrations and adapt strategies if attendance starts to wane – add more classes, send reminders, or run targeted ads.
Conversions and email responses matter too. While website traffic is nice, it doesn’t pay the bills. Track downloads, newsletter subscriptions, and email click-through rates. When interest starts to dwindle, mix things up, switch formats, personalize content, and clean up your email list to gauge genuine interest.
Proposals and closing rates are crucial KPIs. Know how many new projects you need monthly and track the time from initial conversation to a signed contract. If the number of proposals falls below your KPI goal, it’s a heads-up to boost sales activity now.
Remember, KPIs should be directly tied to your business objectives, easily measurable, and action-oriented. Choose metrics that align with your goals, collect data regularly, and set specific actions to improve performance. After all, it’s hard to reach a goal if you’re not sure how to get there.
A Few Tips to Create Your KPI's
READY TO WORK ON YOUR KPIs?
You can’t measure everything, so choose wisely to focus on metrics which indicate you are moving toward your goals.
Use this workbook to get started.