Metrics. KPIs. Spreadsheets. Tracking.
You snoozing yet? Eyes glazing over? Bueller?
Take this as a big old klaxon in your ear.
Because, as boring as it might sound, tracking the key metrics in your business is actually one of the most important things you can do if you’re looking to scale.
Especially if you’re hovering at the multiple 6-figure level and have been trying (and failing) to break 7 figures for a while.
Not so snooze-worthy now, eh?
If you’ve been avoiding tracking key metrics until now, you might not be too sure where to start. Which is why we’re going to walk you through the 3 key things to track if you’re trying to scale.
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Metric 1: Does your marketing pay for itself?
Making our marketing pay for itself was the biggest game changer that helped us scale to 7 figures — and we’ve discovered it’s a crucial step for our clients too, when implemented in the right way at the right time.
In fact, it’s pretty much become our mantra for the business.
As far as tracking goes, you’re going to want to look at how much you’re spending on things like ads over a specific time period (daily isn’t the best metric just because of how things fluctuate. Weekly/monthly is better) and how much revenue you’re bringing in from the self-liquidating offers and downsells you’ve put in place.
Ideally, you’ll find that the revenue your ads are bringing in covers the money you’ve spent 100%, if not a little bit more so that you can scale up your marketing.
But even if you cover 80% of your marketing spend straight out the gate (and that’s possibly a more realistic figure depending on your niche and your offer), you’re still going to have scope for growth.
Metric 2: Your dream client’s journey.
The second key metric to track is how long your dream client needs before they buy from you.
Here’s an example of why you need to know:
Say you look at your numbers and discover 80% of your sales come from people who have been on your email list for less than seven days.
What you learn from this is that you’re tapping into a very real pain point and the price you’re charging and the value you’re offering are working for your people.
Or…you might find that the majority of your clients have been on your email list for six months or more.
If that’s the case, you might look at your initial funnel and think that because your sales are quite low, it isn’t working for you.
But actually, it is working. It is going to convert that 10 – 20% of people who are ready to buy now (and that is going to help you pay for more marketing — yay!) And the real lesson is that you need to provide more touchpoints to build up more trust among the other 80% who need a bit more reassurance before they buy.
Another similar metric to consider: how much contact do your people need before they buy?
Again, you’re trying to map out your dream client’s perfect marketing journey and make it as systemized and streamlined as possible.
Knowing that your clients typically need multiple touchpoints can help you decide how many automated webinars you’re going to offer or how many launches you’re going to create. It will also help you set your expectations if you know that the purpose of a particular webinar, for example, isn’t to actually convert clients right now but to add an extra tick in the trust box so that they’re ready to buy when you launch in a month’s time.
Key takeaway here: don’t just chase the strategies that convert on day one because, depending on what your metrics reveal, that might not be the best strategy for your growth.
Metric 3: Your budget.
A final metric to track: your budget.
This one is a little boring, and if you have someone on your team that you trust, go ahead and outsource it to them!
But if you’re doing it yourself, know that it doesn’t have to be hugely complicated.
It really is just about making sure you’re giving yourself the space and resources you need to invest in your growth. And this is super important because one of the biggest mistakes people make when trying to grow is giving in to the fear of investing and thinking they’ll wait until they up their profit before they start spending more.
In reality, you do usually have to spend more to get to the next income level so it’s worth knowing your numbers well enough to know how much you safely spend on increasing your marketing, growing your team, or whatever else you need to do to scale, without pushing yourself into debt.
If you want to know what that investment ratio might look like, head on over to the pod episode where we share a breakdown of how we set our growth budget. You’ll also find more information on the first two metrics too, so be sure to give it a listen.
And if you want to learn even more about what it takes to scale your business, check out our brand new program, eCourse Elite. This is a high-touch, 12-month mentorship program for 6-figure course creators who are looking to scale to 7 figures and beyond in a way that’s reliable, sustainable, intentional, profitable — and preferably as automated as possible. Doors have only just opened and we’d love to see you in there! Click here to secure your space.