Setting short and long term objectives for your business is important. We establish a set of objectives every year and build a plan around them. Measuring your actual performance in a timely and consistent fashion is critical. We must constantly measure the important aspects of our businesses using various performance metrics. Finally, understanding how we are trending over time is important.
Are we on plan?
Are we trending upwards or downwards in key areas of the business?
Are we signing up and retaining the desired number of new customers?
Are people responding in a positive way to our advertising?
Sometimes it is difficult to identify the important metrics and eliminate the non-essential noise that distracts us. Be thoughtful. We must ask the right questions and measure the right things over time.
The following is a list of metrics to start with.
Overall sales (counts and amounts)?
Min, Max, and Average order size?
Average order margin?
Time between orders?
Engagement via Social Media, Live Help, Email, or Phone?
Reviews (quantity, quality, sentiment)?
Marketing and Advertising