It’s all very well to start a business and say you’re aiming for the stars. It’s a fine intention to shoot for success, but unless you know what success looks like, you won’t know what to do. Is success for your business merely remaining open for another year or is it doubling your revenue, tripling it or even more.
If you don’t have a clearly defined picture of what success is for you, then you’ll have no way of prioritising where to spend your resources, how to respond to problems or what opportunities to pursue. Today we’re taking a look at a few different ways you can measure success to help you approach your business with clarity and understanding, and make the best decisions for it possible.
Nothing else you do will matter if you’re not achieving the basic task of pleasing your customers. Your aim might be more sophisticated than simply having them like you. You might be trying to project an image of respectability or trustworthiness – qualities which become more important when you’re selling services rather than running a conventional retail operation.
Tracking your NPS – your net promoter score – is a simple but effective way to measure if your company is building loyalty. It’s a straightforward survey that asks your customer to rank on a scale of one to ten how likely they are to recommend your brand to friends. Responders giving a nine or ten score are ranked as promoters, and the growth of your promoters proportionally is a great measure of success in this arena.
The watchword in the world of business now is ‘growth’ – growing your business is the ultimate goal and demonstrating to your investors that you’ve grown year on year is the key to a happy relationship with them, and the release of additional funding when you need it!
Defining growth is the key to success. Growing revenue is the ultimate aim, but it’s not always easy to do on demand, so you need to pick a version of ‘growth’ that contributes to your company while also being something you can reliably measure and gives you useful results.
Growing footfall is something it’s relatively easy to measure in retail and digitally, and gives you access to other metrics like conversion – how many of those browsers convert to a paying customer? Footfall is a great thing to measure in the early years of your business as you need to get people through the doors to sell to them. As footfall increases you can start to look at how and why people convert and why they don’t and set new targets for growth on conversion that will contribute to your bottom line and your eventual long term success.