Are you tracking how your customers are helping your business grow?
October 26, 2014
Sales is a big deal for all businesses. After all, without money coming into the company, there is no way it can survive, no matter how long it has been in the market. Finding a good sales force is difficult. Keeping one is even more so. With dwindling sales resources, how does a business keep up the sales momentum so as to make the business not just survive, but also thrive? Well, one very effective way is to get your customers to sell for you and there is a whole host of different strategies to do that. In this article, we will not be looking at these strategies; instead, we are looking at our customer metrics, and from there, discern what needs to be done.
While many people look at revenue-per-customer, or value-per-customer, as growth metrics, you might like to look at a simpler metric of how many customers you are adding per month. Each customer brings with them a direct value to your business. However, they can also impact significantly on your sales through their referral activities. So the more customers you add to your business, the more you can use their network to increase your business.
The next metric you would like to look at is your customer retention rate. You can track them through rebuys, through membership, through product use. It is important to ensure that your customers remain engaged with your products or services so that they continue to lead to increased revenue growth.
This is perhaps the most important metric. The referral rate not only shows how much each customer is adding to your customer growth, but it also demonstrates his or her satisfaction. After all, no one would refer or recommend a product or service about which they are not satisfied.
These are basic and simple metrics to track. Yet a surprising few businesses, especially SME businesses, track customer growth (they usually focus on revenue growth). But perhaps looking at customer growth may lead to better customer care, and ultimately, better revenue growth.
So if you have not been measuring your customer numbers, start with these three.
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