Find the numbers and measure relentlesly
In any business there are three core activities that it’s very very important that you understand and understand not just the activities but the numbers that sit behind them those activities are.
Firstly marketing, secondly sales and thirdly how you service and keep your customers. If you think about marketing there are activities that you will undertake, in terms of marketing,these are lead generation activities. They create opportunities for you to sell to new customers. When you think about sales there are activities and people who sell whatever it is that you do, and then when you think about customer service, again there are activities and people who look after that function as well. Where it’s really important that you get to is an understanding of if I spend X I get Y.
Now you may be joining us from anywhere in the world but let’s just use dollars to make the point here. If you spend $100 on a marketing activity, what will the result be if you can guarantee, because you’ve studied this, that it would generate 20 new leads and that following a sales process your team could close, let’s say eight new customers, and those customers bring in five hundred dollars on average every year, and let’s say you spend $100 to service those customers, then that would be a good investment. But until you know those numbers you really have no idea what you can spend on marketing with any sort of justifiable return on investment. If you don’t know those numbers it’s time to find them out and your accountant can help you do just that.
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One half of the Anywhere Business Team