Last week we walked through an overview of the numbers you need to understand as an entrepreneur.
Today, we’ll drill down to the first of our four categories: Sales and Marketing.
Sales and Marketing are often lumped together, but they are not the same.
To create a dashboard for your marketing, consider these metrics:
- How many people do you need to talk to before they walk into the store? This includes questions like: how many fliers do you need to pass out, how many ads, and how many trade shows must you attend?
- How many from the trade show qualify for follow-up?
- How often should you follow up with them?
- What is the total life cycle of that marketing cycle? If you text someone today, how many times do you have to touch them over how many, days weeks, or months before they walk in the store?
Now that you have them into the store or on the website — how long does it take to close a sale? How long does it take for the selling process? They are different.
This is Process: You go to a clothing store, look around, pick out things to try on, try them on, then make a decision. How long does that take?
This is Closing the Sale: You go to the register and wait for the clerk to ring up your purchase. How long does that take? The same questions apply online — you click around for a while, make your choices then click “check out.” How long does it take to check out? How many steps does the customer go through? What is your average ticket sale or sale per ticket, dollar-wise? What is the average number of items per ticket? Was there any up-selling or cross-selling? Did they buy pants to go with that jacket? Maybe two? Do you ask for referrals? Do you suggest loyalty programs or demo days, or trials of other products or services? How many customers does it take to support one sales person?
BEFORE YOU GO:
Answer one or all of these:
- What information do you need to track in order to be effective in your marketing?
- What comments or insights do you want to share?
- Tell us about a successful marketing campaign
Faris Alami is Founder and CEO of International Strategic Management, Inc. (ISM). He works internationally, presenting Exploring Entrepreneurship Workshops and other entrepreneurial ecosystem — related ventures.