Start monitoring the growth of 4 types of business data

Start monitoring the growth of 4 types of business data

Start monitoring the growth of 4 types of business data

When you run a business, intuition and experience are valuable assets, but they are not enough to achieve impressive growth-you also need data.Checking your business figures and measuring your performance is the key to solving problems, making more informed decisions, and keeping yourself stable Grow.

Why is data important?

When you collect and evaluate company data on a regular basis, you can gain a deeper understanding of how your business looks at the big picture and The level of granularity. More information at your fingertips means you can be more strategic and proactive as a business owner.

Viewing the data can make it easier to:

  • Determine your business model and blind spots
  • Identify your company’s strengths and weaknesses
  • Increase revenue/sales
  • Interact with customers
  • Development is more effective Marketing strategy
  • Maintain cash flow
  • Set realistic goals

4 types of business data need attention

As a business owner, you can measure countless indicators, but most of them can be grouped into four key areas: marketing, finance, customer experience, and sales.

1. Marketing data

Without consistent strategic marketing, your business growth will stall. This is why it is important to check your marketing metrics regularly to understand what you are doing right and where you can improve. The following are three areas to focus on:

Website analysis: Your business website is full of valuable information about your marketing strategy. When you look at the analysis, please pay attention to the total number of visits per month, the number of pages visited, and the bounce rate of the website, which indicates how quickly visitors leave your website.Analyzing yours is also very smart Website traffic Sources (e.g. email, organic search, and social channels), so you can see which distribution channels bring the most traffic.

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Social media analysis: Staying active on social media is a great way to build a corporate brand and attract new customers. On each of your business accounts, make sure to record the number of followers you have and the number of likes, comments, clicks, and shares your content has received on each platform. The higher your content engagement, the higher your visibility and post coverage.

Email analysis: Creating tailored email marketing campaigns is one of the most effective ways to attract current and potential customers.Whether your business sends email newsletters, promotions, or transaction messages (or all three), keep track of your Email open rate. Knowing how often subscribers open your messages is the first step in figuring out how to adjust your email to get better engagement. You should also look at your email list growth rate and click-through rate, which show how often new users subscribe and click on links in emails.

2. Financial data

Your financial situation is the foundation of your entire operation. Familiarity with financial data will not only give you a better understanding of the company’s overall profitability, it will also make it easier for you to budget correctly, maintain a healthy cash flow, and achieve sales and revenue goals.

You and your business accountant should take time out every month to review your income statement, balance sheet, and Cash flow statement, But it’s also worth tracking the following:

spend: Your business expenses can reveal a lot about your company’s operating efficiency and cash flow. Fixed costs, Which includes costs such as rent, employee salaries, and insurance, which remain the same every month, while variable expenses fluctuate. Examples of variable costs include inventory, utilities, marketing, and advertising. Summarizing your fixed and variable expenses will tell you the cost of running your business.

Net profit rate: Your net profit margin shows how much of your business income is converted into profit. To calculate it, first calculate your net income using the following formula: Net Income = Sales/Income-Cost of Sales-ExpensesFrom there, you can calculate your net profit margin percentage: Net profit rate = (net income / total sales) x 100If your net profit margin is low, you may need to consider increasing your revenue by increasing sales, raising prices, or cutting expenses.

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Revenue growth: Revenue growth is a good indicator of how stable your business growth is. Seeing how your income changes from month to month or quarter to quarter can help you make more accurate sales forecasts. To calculate your revenue growth, use the following formula: Income growth rate = (income in the current period-income in the previous period) / (income in the previous period × 100).

3. Customer experience data

Maintaining competitiveness boils down to improving the company’s customer experience.Analyzing customer experience data is the key Attract new customers and Satisfy what you already have. Here are some indicators to consider:

Customer retention rate: The retention rate shows how many customers you have maintained, and the churn rate shows how many customers you have lost. Rather than looking at your retention and churn rates in isolation, consider the normal situation in your industry and then look at how your rates have changed over a period of time. If you keep losing customers, you may need to check your products, adjust your pricing, or evaluate your customer service.

Customer reviews: Customer reviews on sites such as Google and Yelp provide valuable qualitative data about customer likes and dislikes. Pay attention to your total customer reviews, your average rating, and the number of positive, negative, and neutral sentiments in the feedback you get.

Net Promoter Value: Net Promoter Score (NPS) is a simple and effective way to measure customer satisfaction with your business. You can send an email survey to determine your company’s NPS, or install a website pop-up window that asks customers to rank their experience on a scale of 1 to 10.

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4. Sales data

You need to understand your sales indicators and results in order to improve your sales strategy and reach your quota. First check the following:

Qualified potential customers: Qualified potential customers are the ones most likely to become your customers. Tracking the number of qualified leads your business has is a good way to determine whether you are targeting the right market. You can evaluate qualified potential customers by counting the number of people who visit your website, add products to a shopping cart, or click a link in one of your emails.

Lead to conversion rate: Lead to conversion rate, display frequency Qualified potential customers become paying customers, Can tell you how effective your sales strategy is. You can use the following formula to calculate the conversion rate: Conversion rate = (total number of new customers/total number of potential customers) x 100From there, you can increase the conversion rate by retraining your sales team or adjusting your sales channels.

Annual sales growth rate: Viewing your annual sales growth rate can give you a better understanding of how your business is progressing year by year and what steps you can take to improve it. The formula is: Annual sales growth rate = (current year sales-last year sales) / (last year sales x 100).

Lead with data

Evaluating data is an effective way to gain insight into the future of your business, but you need the right method tool go a head. Website analysis platforms, customer relationship management software, and accounting software can easily track a large number of different business indicators. In addition, certain platforms and tools generate weekly and monthly data reports.

However, no matter which method you choose, it is important to track various metrics over a long period of time. One data point does not tell many stories, but data from a few different fields can provide a more comprehensive understanding of your business’s health and growth potential.

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