One of the main concerns that a company that offers its services over the Internet has is knowing their numbers. They say that numbers are the language of business, but the Internet is a binary business, its numbers are 0 and 1, in the end this is what determines your success many times, what do you want to be 0 or 1?
However, there are a number of metrics that are balanced in one direction or another, never forget in every business that boasts no matter how good it is or how much you like it, everything is based on selling. I share with you seven metrics so you can measure and manage your sales to be able to make more correct decisions.
1#. The lifetime value of a customer
What is the value of each of your clients? Some will be better or worse for you, but do you know which of them brings more economic value to your company?
Imagine that your company sells a product and you have a client who buys that product once a month, we value that purchase at € 100 / month, the time that this client is buying in our business determines the value of our client's life. If this is a year buying, that is, 12 months, the formula is simple 12 months x € 100 / month = € 1200.
This is the value of the customer, in relation to this value you have to determine the resources you need to achieve and retain it.
2#. How much does it cost to get a client?
Technically, this metric is called " Customer Acquisition Cost " and it determines how much we spend on our sales actions, be it press, adwords, banners, etc.
Let's take the example of the type of company that offers its services through adwords with a monthly cost of € 500. With this investment 70 customers and 4 sales are obtained, its formula to calculate the cost is (investment / sales = customer cost) that is € 500/4 sales = € 125.
This means that with this example it tells me that getting a customer to buy costs me € 125 of investment in marketing / advertising. If my profit from sales is higher than € 125 then the campaign has been effective, but if on the contrary I have spending and no profit then our strategy is wrong, you have to stop and think many times there is the key to success.
3#. Conversion rate
This in boxing would indicate the amount of blows that you would have to give to knock down your opponent, in soccer the number of shots a team shoots to score a goal because in sales it is something similar.
Imagine that I carried out an email marketing campaign and sent 1000 to potential clients, that is, we have 1000 leads. After launching our campaign 10 of them acquire our services (1000 leads / 10 new clients = 10% conversion rate)
" In e-marketing, when a user after a search on the Internet comes to a web page and fills in an information request form, we call this lead."
If we consider 10% as a low conversion rate, we should make changes in the sales process.
4#. Average ticket sale
Some tricks allow you to increase the value of the sale. For example, companies offer mobile phones and provide insurance for it at a low price. This considerably increases the sale thanks to the security it provides. In other words, we increase the sales average by offering an added service to it.
5#. The response rate
As we are practically basing our metrics on Internet businesses, the response rates for e-mails for example are generally 1%. This presents us with a scenario in which to obtain 10 responses to our emails we will need to make at least 1000 shipments with a good offer, with the addition that of the 10 responses received, not all of them will end up for sale “even more difficult”.
6 #. The rate of leads to close sales
If your Internet business is based on providing professional services or the sales cycles are long-term, the rate of leads to close sales gives us an idea of the amount of audience we will need to sell.
Let's put a strategy if we are an Internet company that offers services to SMEs, for example web page programming, and we create 10 prospects and generate five meetings and produce a client. To get a thousand clients we would need to reach 10,000 people.
7 #. Contacts for sale
How many contacts does your strategy need? The general rule is:
Two percent of sales are made on first contact
Three percent of sales are made on the second contact
Five percent of sales are made on the third contact
10 percent of sales are made on the fourth contact
80 percent of sales are made on the fifth contact
It is commonly accepted that on average you need between four and seven contacts to sell.
Basically these seven Metrics can be applied to everything in general or to something in particular, I hope they will help you.
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