Business Analytics (BA) refers to the skills, technologies, practices for continuous exploration of past business performance to gain insight and drive business planning. Business analytics are used by companies that are committed to making data-driven decisions.
When you first started your business, you set out to improve the lives of your family.
You wanted to provide for your children, take care of your parents and build the life that you promised you would with your spouse.
Along the way, you’ve encountered speed bumps that may have slowed down progress. Maybe you’ve lost a little enthusiasm because of them.
There is a difference between dreamers and those who have plans that allow them to leverage their success in order to build a thriving business.
The truth is, knowing your numbers is the most important factor to growing your business and keeping your entrepreneurial dream alive.
BUSINESS ANALYTICS: TRACK EVERYTHING!
From the moment you start your business, your online journey or your building your team, there are things to measure.
Clicks, conversions, leads, sales, ROAS, EPC, CPA, views etc…..every aspect of your business model should be monitored and reviewed often.
Whether you are running an offline or online business, there are a few crucial figures that must be measured.
Expenses, revenue, cost per acquisition, lifetime value of a customer and list size to name a few.
Business Analytics 101 – Expenses
How much are you spending? How much have you spent?
Even if you have set aside a sizable war chest to start your business, it won’t last long if you don’t keep track of your spending.
Good entrepreneurs know what they have spent on. Whether they have spent too much and whether they still have a budget to spend on growth initiatives.
Business Analytics 101 – Revenue
It seems obvious that having money come in to your business is a positive. But you need to know more than that to run a profitable business.
Too many times we have seen companies close down even though they have large revenue streams. You need to take account of your revenue in relation to other factors.
Having a clear picture of how much money you are generating vs. how much you are spending, will help you understand your cash flow liquidity.
These numbers guide you to tighten expenses or increase asset spending in order to maximize profit.
Business Analytics 101 – Cost Per Acquisition (CPA)
Also known as customer acquisition cost refers to how much it costs for you to acquire a buying customer.
This number requires you to know how much you have spent on sales & marketing for the month as well as the number of new customers you have served during that time.
Did the amount spent by the average customer justify the cost of your advertisements, the time for content creation or the amount you spent hiring a designer for your website?
Business Analytics 101 – LTCV
LTCV means Lifetime Customer Value.
It measures how much your customer buys from you before he/she moves on.
How long is that average lifetime?
Can you prolong the duration of your relationship with the customer?
Can you increase the value of your average customer?
LTCV helps answer such questions.
Business Analytics 101 – List Size
How many leads are you introducing into your funnel daily?
Knowing the number of fresh leads you expect daily will help you better organize your prospecting activities. List size matters in all businesses and a business without a growing list will soon exhaust what they already have and end up in crisis.
All good TRADITIONAL BUSINESSES measure the basic numbers mentioned above. You are taking a great risk if you haven’t done so and have been basing your decision on assumptions and guess work.
Tracking is crucial to expanding your business, selling your product or growing your team using a data driven approach.
- How would you know whether you are on track to achieve your targets or whether your strategy is working unless you measure your progress?
- How much advertising budget would you need to generate enough leads for you to reach your income goals within a specified time frame?
- If your advertising costs exceed your revenue, you would want to identify why your traffic is not converting.
- Have you been counting the important things?
- Are you measuring daily?
- Do you know your numbers?
Success is a numbers game.
Get the business analytics SUPPORT you need to create the strategies required to see those numbers GROW.
Don’t neglect tracking because you are too busy building other aspects of your business. Your strategy must be based on hard facts and not luck.
They are your GPS that tells you where you are and how to get to where you want to go in your business journey.
Once you do, you will see your business as it actually is and will be able to devise a strategy to move it forward.
Are you ready to (or ready to learn how to) DOUBLE, TRIPLE or 10X your results this year? Blazing Conversions is ready to help you.