I’m not going to ask you to answer that question. Let’s save that for another time. But what I’m getting to is the activity of measurement. Too many business owners (especially small business ones) have no measurement system in place. Do you? Let’s find out.
Can you answer these questions about your business?
- How much does it cost to bring in each new customer?
- How much are you spending currently to do so?
- On average, how much does each customer spend with you?
- How long do your customers stay with you?
- What is your lifetime customer value?
There are several other important metrics that business owners should use, but let’s focus on the above four first.
Before we do that though, let me tell you why these metrics are so significant to your business. Without these, you’re business is like a boat in the middle of the ocean with no radar or compass. You will do what you can to survive, but you really have no idea which way to go, when to go, and how to best get there.
When you know these key metrics, the haze surrounding your business will clear. You’re business eyesight will sharpen and your profits will soar.