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What day do eggs hate most... Fry-day? Ok, ok, I know that was very cheesy, but welcome to the best day of the week. Happy Friday, my Community friends! I hope you are looking forward to a weekend of relaxation. Before you close up shop, I wanted to share an article by Forbes about three important metrics your business needs to track. Well, let's see what they had to say, shall we?
Marketing reach
Marketing reach helps you better understand your customers, for example, who will purchase your product, and who is your target market, to list a few. You can use followers on social media or people who have engaged with your website or email subscriptions for your metrics. This will let you know if you are marketing skills are paying off. An important thing to note is your conversion number. If it is too low, more planning and different strategies would need to be implemented. The author mentioned this example. If you reach 1 million and expect .01% conversion, this is equal to about 100 products sold, which is manageable. They are many marketing tools out there that you can use to do this, and some are free. Google Analytics is one of the tools my business primarily uses.
Operational output
The authors stress that you need to focus on quality control when you are mastering your product. It will be a waste of resources if you are creating multiple products that no one is purchasing. Nothing is more disappointing when you were all excited about a new product, and once you got it, it is defective. Most likely, you wouldn't even bother to buy from that company again. The operational output metrics show you the products' returns, the amount being sold, and the faulty products. With these numbers, you can analyze and see where you need to make changes. As the saying goes, quality over quantity.
Profit Margins
This metric acts as a guide to let you know if the product you are selling is worth it. To calculate this, you have to measure the selling price, the amount you make per unit and the cost of selling it. Having these numbers will allow you to determine if you need to adjust or continue how your business is operating. As the author rightfully said, "Business is about numbers. Know your business numbers."
Do you know any more metrics businesses should be monitoring? Please leave your comments. We love to read them. I hope you enjoy your weekend. Until then, continue to be safe and well, my Community comrades.
