It’s easy when you’re running a business to focus heavily on your profits and losses, but there are several other vital areas you should focus on too so that it remains healthy in the long term.
The following KPIs highlight just how important it is to keep an eye on all areas of your business and the costs of ignoring them:
Average Customer Value
What is your average customer value? You’re not alone if the answer is “I don’t know”. Yet often what stops a business growing is the over reliance on gaining new customers rather than making the most of the ones you have. It can be much harder to win new customers than to put together a marketing plan that will have your customers returning for repeat business or to provide you with more work.
Leads Conversion Rates
If you keep a careful track of how your leads are being transformed into sales – or not as the case may be, this can either help you to make your sales team more efficient or build on good performance.
Company Growth and Customer Acquisition
Wishing for more business is one thing, handling it is another. Companies that grow too fast too soon without having the capability to handle the workload can end up ill-equipped to handle the extra workload. This can lead to a range of problems including missed deadlines and unhappy customers.