Business Management

Test and Measure to Make Informed Business Decisions

It’s a basic business principle that the more you know, the easier it is to make decisions about what’s working and what’s not. If you are not Testing & Measuring the critical areas of your company’s performance, it is likely you are allowing money to escape from your company and therefore your wallet.

For example, lead generation is a key driver in every company, but few businesses know how many leads they get each week. Even fewer know where those leads came from. Information such as lead source, dollars spent, revenue generated, etc. is invaluable when making decisions regarding marketing and advertising.

The most effective method of tracking lead generation strategies is to develop a database that includes details such lead source (networking event, Strategic Alliance, referral, marketing campaign(s), etc.), first contact date and last communication details, sales stage, revenue generated, and next steps. These details, and more, are vital in making informed decisions regarding marketing campaigns. Through this Test & Measure system, if you see more revenue generating leads coming in from a particular marketing campaign, you know you will want to continue with it. If a marketing campaign isn’t generating leads, you need to rethink your campaign. The point is, you’ll never know unless you are continuously measuring the number and source of the leads you get. So…Keep meticulous records of where all leads are coming from and how much they spend once you’ve converted them to customers.

Testing & Measuring doesn’t stop with lead generation. There are many other areas within every business where well tracked and documented data is invaluable, even critical, for making good, sound, profitable business decisions.

The areas we should be Testing & Measuring:

  • Conversion Rates – converting leads to customers
  • Quality Control – delivery of service or product
  • Customer Satisfaction
  • Referrals
  • Communication within the company
  • Adherence to the Rules of the Game
  • Collection Process
  • On-time delivery/shipping
  • Invoicing accuracy
  • Etc…

Identify the key drivers in your company and ensure that you take the time and effort to put Test & Measure systems in place for the long-term. The information you gather will be vital to making good business decisions and growing both your business and especially your profits.

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