Why does a business need to track business metrics?
Posted: Thu Dec 26, 2024 10:11 am
Let's look at the example of companies that collect customer data for further sending of notifications. For small business owners, it is important not only to which customers to send mailings, but also how to do it in the most optimal way, that is, with the minimum cost of marketing expenses.
Passteam collects a high-quality customer database by legal means. RFM analysis is used to segment customers by various parameters, based on data on the frequency of purchases, their recency and the average check amount. Based on the analysis results, you can prepare different advertising campaigns for different categories of customers, for example, a reactivation mailing with a promo code for dormant customers, and a message with an invitation to the salon's birthday for loyal customers.
Below we talk about 8 key indicators that are universal for any field of activity. These are the ones you should rely on to track progress.
1. Sales Revenue
Sales results by month show people's interest lithuania mobile phone number list in purchasing your product or service, whether your marketing costs will pay off, and your competitiveness.
This indicator is influenced by many factors, such as: changes in the market, previous marketing strategies, etc.
How to calculate:
Revenue = Cost of goods (purchase price) + Added value
How to improve the indicator:
The most obvious way to increase sales revenue is to increase their number . For example, to increase sales in the restaurant business, it is more profitable to focus on the existing customer base than to attract new guests of the establishment. A customer loyalty program will help with this. Participants in loyalty programs have a higher average bill. They will also visit the restaurant more often to use the accumulated bonuses. Another undoubted advantage of loyalty programs is an increase in the number of guests, since customers go to restaurants in the company of friends, colleagues or relatives.
Passteam collects a high-quality customer database by legal means. RFM analysis is used to segment customers by various parameters, based on data on the frequency of purchases, their recency and the average check amount. Based on the analysis results, you can prepare different advertising campaigns for different categories of customers, for example, a reactivation mailing with a promo code for dormant customers, and a message with an invitation to the salon's birthday for loyal customers.
Below we talk about 8 key indicators that are universal for any field of activity. These are the ones you should rely on to track progress.
1. Sales Revenue
Sales results by month show people's interest lithuania mobile phone number list in purchasing your product or service, whether your marketing costs will pay off, and your competitiveness.
This indicator is influenced by many factors, such as: changes in the market, previous marketing strategies, etc.
How to calculate:
Revenue = Cost of goods (purchase price) + Added value
How to improve the indicator:
The most obvious way to increase sales revenue is to increase their number . For example, to increase sales in the restaurant business, it is more profitable to focus on the existing customer base than to attract new guests of the establishment. A customer loyalty program will help with this. Participants in loyalty programs have a higher average bill. They will also visit the restaurant more often to use the accumulated bonuses. Another undoubted advantage of loyalty programs is an increase in the number of guests, since customers go to restaurants in the company of friends, colleagues or relatives.