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What Key Marketing Metrics Should Small Business Owners Focus On?

What Key Marketing Metrics Should Small Business Owners Focus On?

Update: 2019-08-21
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At first glance, tracking the key metrics of your small business can often seem like a challenging and unnecessary task. However, for business owners who take the time to master this skill, the rewards can be tremendous. From attracting new customers to gaging the satisfaction of your existing client base, the data collected from a business metrics analysis will not only help you assess the effectiveness of your current practices, but will also show you which aspects need improvement. In episode #163, Gene Marks and special guest Kathy Bromage discuss which key metrics your small business should focus on.





Executive Summary





0:32 —Today's Topic: Can Tracking Specific Key Metrics Help Improve My Small Business?



2:55 —Tracking key metrics or business metrics is essentially using quantifiable data to measure the success of a specific practice, such as advertising or pricing. Small businesses can use his information to adjust their existing practices accordingly.



3:38 —The most successful advertising campaigns are data driven. In these instances, advertising companies will typically buy their customers' information so that they can understand how their clients think; they can then design a campaign around these preferences.



5:18 —In order to gage how well the public perceives your small business, you need to find out your Net Promoter Score (NPS). This data can be obtained by surveying your distributors and customers about their interactions with your company.



6:48 —Your NPS not only measures customer satisfaction, but also allows you to identify which specific factors are helping or hurting your business. Once identified, you can adjust these factors to drive more business.



8:39 —Some of the metrics used to evaluate your business's success among new customers, as opposed to existing ones, include the rate of customer conversion and the retention average of these converted clients.



10:02 —If your campaigns or practices are not generating a 20% response rate from your target audience, it's time to reevaluate them.



11:10 —Small businesses that deal with distributors will typically spend 15-16% of their revenues on marketing; for direct businesses, this average can vary according to the market as well as their personal goals and budgets.



15:51 —Although acquisition used to be the primary metric for measuring success, sentiment and retention factors have been proven to be more accurate predictors of customer satisfaction.





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Transcript

Gene: Hi everybody and welcome to the Small Biz Ahead podcast, my name is Gene Marks. I'm here with Kathy Bromage, who is the Chief Marketing Officer, Communications Officer, here at The Hartford. And we're going to talk about metrics. We're going to talk about marketing and numbers and data, to hopefully help you figure out what metrics you can use to run your marketing programs in your business. But before we get started on that, we're going to take a quick break and hear from our sponsor.

Our Sponsor

This podcast is brought to you by The Hartford. When the unexpected strikes, The Hartford strikes back for over 1 million small business customers with property, liability and worker's compensation insurance, check out The Hartford's <a href="https://www.thehartford.
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What Key Marketing Metrics Should Small Business Owners Focus On?

What Key Marketing Metrics Should Small Business Owners Focus On?

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