In business, one of the best ways to measure success is via numbers. After all, numbers never lie and ‘if you can count something, you can manage it’.
But what exactly should you be measuring? Here we look at counting to improve the efficiency of your business, including:
- The importance of knowing your numbers
- What exactly to measure
- How to determine the story those numbers tell
The Power of Knowing Your Numbers
You might have heard the old saying, “If you can’t count it, you can’t manage it.” This age-old wisdom rings truer than ever, especially when it comes to improving efficiency and driving business growth.
The key? Learning to quantify what you do so you can manage and enhance it effectively.
Understanding Key Performance Indicators (KPIs)
Let’s start with a fundamental concept: Key Performance Indicators (KPIs), or as I like to call them, critical points of interaction.
These are the crucial moments in your interactions with customers or potential clients that can lead to different outcomes.
Picture yourself at a T or Y intersection, facing choices that can take you down different paths. The goal is to guide these interactions towards the desired path. But how do we do that? By counting every interaction.
Counting Every Interaction
To begin with, identify and start counting the simple things you do in your business.
These could be phone calls, emails, or face-to-face conversations. Each interaction is an opportunity to influence the direction of your business.
It’s vital to count both the positive and negative outcomes of these interactions to gain insights into what works and what doesn’t.
For instance, when you answer a call, consider the outcome: Does the caller become a customer, or are they put off by the conversation?
Counting these instances gives you a clearer picture of your strengths and weaknesses, and more importantly, how you can improve.
Communication is Key
Think about how you communicate with your customers. Are you engaging directly, via phone, email, or social media?
It’s important to count the number of contacts you make in each mode. Whether you’re speaking to one person a day or reaching out to 30 people, the key is to analyse what happens as a result of each interaction.
The Importance of the Story
In addition to counting contacts, tally how often you share your story and how it impacts your audience.
This involves counting the number of times you share what you do and how often you suggest your product or service. If there’s a gap between sharing your story and asking for a purchase, it might indicate a lack of confidence or clarity in your message.
Count the instances when you complete your story and ask for action, then track how many people actually buy from you. This will help identify potential mismatches between your story and customer responses.
Analysing the Outcomes
As you count, start analysing the outcomes. If you’re reaching out to many people but aren’t telling your story, you may be talking to the wrong audience or hesitating to share your business purpose.
On the other hand, if you’re telling your story and people aren’t buying, it might be a sign to reevaluate how you communicate your value.
Improving Through Analysis and Adjustment
By identifying and analysing these critical points of interaction, your business can begin to operate more fluidly.
You can pinpoint behaviours or activities that lead to successful interactions and implement them more broadly. Conversely, identify what isn’t working and make necessary adjustments.
The Numbers Tell the Story
In business, the answers are often found in the numbers. But it’s crucial to ensure you’re counting the right things and analysing them effectively.
Numbers alone don’t tell the story; it’s how you interpret and act upon them that drives change.
As the old adage goes, “In business, there are many things to count, and many things that count”.
Understanding and utilising your business’s numbers can lead to a more prosperous and efficient operation.
Highlights
- [00:32] The Importance of Counting in Business
- [00:45] Understanding Key Performance Indicators (KPIs)
- [01:39] Analysing Customer Interactions
- [03:13] Effective Communication Strategies
- [04:17] Tracking Sales and Outcomes
- [06:35] Interpreting Business Data
- [07:36] The Story that Your Numbers Tell
