Quick, but relevant Sunday post today. One of the things I consistently work with my clients on is tracking “their key business revenue numbers.” Now, I’m not talking about tracking things like “clicks” and “likes” that may turn into sales. I’m talking about figuring out, and tracking the most important metrics in your business. AKA, the ONLY metrics that matter- Those that directly lead to revenue and income growth.
For example, in my digital consulting business, I only need to keep track of 4 metrics each week. At this point in my business, if I hit my core four sales and marketing activity metrics, I can almost guarantee exactly how many new clients (and therefore revenue) that I’ll bring in that week.
Here are the only four metrics I track in my Digital Consulting Business:
- Number Of Direct Mail Pieces Sent- Every week, my goal is to send out 100 personalized direct mail pieces to my ideal potential customer list (or 20 mail pieces per business day).
- Number Of Follow Up Videos Sent- Every week, my goal is to send 100 personalized video email follow ups to every potential client that received a direct mail piece the previous week (again 20 personalized videos per day).
- Number Of Digital Strategy Sessions Scheduled & Conducted- Every week, if I send out my 100 mailers and 100 videos I know for a fact that I will have roughly 10-15 Strategy Sessions scheduled and will speak to about 40% of those potential prospects each week. So, if I send out my 100 letters and 100 follow up videos I will speak to between 4 and 7 potential new clients.
- Number Of New Consulting Clients- For the past two years I’ve logged the results of every Strategy Session call that I’ve conducted. Even though every call and client has a different situation, my call to client percentage always ends up right around 50%. Meaning, if I do 100 Strategy Sessions in a year, I can safely predict that I’ll then have 50 new clients for my business. Every week the buck stops here. Literally nothing else matters.
And……that’s it. So, now that you know exactly what simple and easy to track metrics I target in my digital consulting business, here’s how my last week looked.
- Number Of Direct Mail Pieces Sent- 100
- Number Of Follow Up Videos Sent- 100
- Number Of Strategy Sessions Scheduled & Conducted- 9 Scheduled 4 Conducted (44%)
- Number Of New Digital Consulting Clients- 2 New Digital Consulting Clients @ $1,500.00 per month
= $3,000.00 dollars in new business revenue brought for the week of January 18th, 2016.
Simple, right? Yup, that’s how I like it, and how it needs to be for my business to be successful. I just laid out the exact game plan (with hard numbers) that you can use to plan, track and build your digital consulting business. Take these metrics to heart, and start tracking them in your business and you’ll soon see that you can predict (sometimes to the dollar) exactly how much revenue you’ll bring in the upcoming week.