I’m in hour five of a six hour plane ride to San Fran and for some reason I’ve been overwhelmed with the urge to bust out a quick blog about tracking and understanding your core business metrics….LOL.
If you know me or read this blog this shouldn’t surprise you, as these strange business compulsions consistently and constantly come across my gourd.
We got fifty minutes till I touch down so let’s go!
If you’ve been around business for more than a couple of minutes you know that it’s extremely important to be tracking your business metrics and understanding “your numbers” at all times.
This seems to have become such an obvious piece of advice, that, it usually just gets said, heard and then never thought about or acted on again.
“Know your numbers” they tell you; you’re sunk without them!
That’s all well and good but what numbers and business metrics are we tracking here??
Usually, when I speak to potential clients they are not tracking the correct metrics in their business marketing and advertising.
Most, are focusing so hard on the “front end metrics” that they completely lose track on the couple “back end metrics” that truly drive business and ROI.
The only two metrics that matter in your consulting, coaching or high value services business are 1) Your Cost To Get A Qualified Potential Client On The Phone and 2) Your Cost To Bring On A New Client.
That’s it, just those two.
Every other metric is really just noise and distracts from the bigger picture of focusing relentlessly on what matters most.
In your business, at all times, you need to always know exactly how much you pay to get someone on the phone, and how much you pay to enroll someone into your programs.
For example, in my business in January, it cost me $153 to get a potential PCED student on a Strategy Session phone call and it cost me $487 to enroll a new client in my program.
What led up to these numbers were a ton of clicks, a bunch of signups and good amount of scheduled sessions…. but, none of those metrics really matter.
The only thing that mattered to my business in January were the two metrics in bold two sentences above.
Don’t be distracted by numbers that don’t matter, and focus incredibly hard on the couple that do matter, and you’ll quickly separate yourself from all of the business owners who aren’t looking at the right things, and are losing hard dollars because of it.
Summary: The only two metrics that matter in my business are- cost per new conversation and cost per new enrolled client.
Action Steps:
- Put together a coaching and consulting business model based around getting potential clients on the phone.
- Track exactly how much it costs you to speak with someone about working with you.
- Track exactly how much it costs to bring a new client onboard.
- Focus relentlessly on scaling and decreasing your costs on those two metrics.
- Grow the type of business that 99.9% of people won’t.
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