Know Your Business Metrics | Platform Building Tip 3

Know Your Business Metrics | Platform Building Tip 3

Sometimes when we talk about business metrics or numbers, you might have the tendency to tune out, but it is important you understand these key numbers.

No need to fear the numbers

There is no need to fear the numbers, you don't have to be a mechanic to understand if your car needs fuel, because you can read the gauge.  The same applies to your business metrics.

Why you need to understand your business metrics

The reason you need to understand the basic important metrics is that while building your platform, these metrics will help you avoid bad strategies while also understanding the strategies that work for your business as a whole.

What are metrics you need to know.

These can be broken up into 5 categories.  Each one has a particular purpose, but if you understand the previous 2 videos on Business Models and Client Journey, you will see how they actually interlink.

1.  Reach / Views

While these are great "vanity" metrics, they help to see if your advertising is working or if people are actually seeing your content, these are relatively useless on their own.  

2.  Engagement

This is how you can make meaning of your Reach / Views metric.  This is how many people "engaged" with the content via a reaction or a heart.  The Facebook page insights offer engagement stats as a percentage which is helpful.  

This will enable you to understand if your content is appealing to your audience, and also helps you see what content they resonate with.

3.  Action

While engagement is an action, this is more a call to action.  This includes visits to your website or a particular landing page.  This is separate to number 2 because this is a real gauge of the value of your content - for example - if you are putting a blog post out on Facebook or Linkedin you will know people like it or the Headline is compelling if you get a good click through to your blog article.

4.  Commitment

Getting someone to make a micro-commitment is the first key to monetizing your business.  It is also a great way to know if you can get people to click to your site, should you have a monetization plan.   My favourite metric here is email signups.  Whether it be to a newsletter or a specific "lead magnet", this is a great way to see if people are motivated to connect with you from the copy on your page or social media.   You can include joining a Facebook Group here for the moment, until Facebook change their algorithm, but for now Groups are a great way to reach and market to people.

5.  Customers

The ultimate stop on your client journey is a person becoming a paying client.  This means that all of the metrics above leading here are working for you, and your messaging is on target and reaching your people.   The reason this is important is because it gives meaning to the other 4 metrics, however it also helps you identify if your targeting or platform building is hitting the right audiences.

These key metrics, reviewed weekly will highlight many areas of your business that are working or need help.

If you need 1-2-1 help on getting this sort of reporting setup, book an Online Breakthrough Session to discuss how we can help you.

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