There is an 80% chance that your SMB will do well in the first year. Meanwhile, 50% of businesses fail in the fifth year, and 70% in the 10th year. Most of us are so busy planning the start that we forget about the business continuity part. In this Campaign Monitor article, get to know the 5 metrics that ensure success continuity of your SMB.
Forecasting the SMB Future
SMB metrics measure business growth, employee and department performances, investment feasibility, and ROI. Following are the 5 metrics to ensure your SMB success continuity:
Customer Acquisition Costs: This will measure how your marketing campaigns and investments are performing. However, other parameters like business goals and strategies and industry type also factor in for ROI generation. Your customer acquisition costs should be low. If it is high but you have not launched any product or services, that is a warning for something going wrong.
Operating Cash Flow: An SMB can earn money by receiving profits, selling company stocks, and getting a loan. Monitor regularly how much you have earned, should reinvest, or save as profits.
Net Burn Rate: General burn rate (GBR) is the total cost of running the SMB. Net burn rate is the money you have spent in the process. Subtract GBR from total company profits to get the result.
Customer Churn Rate: This metric influences your SMB model and strategy and evaluates customer loyalty. You might have several viewers but they might not turn into loyal ones. You must then change the brand marketing strategy or product features.
Digital and Social Media Marketing: Online marketing has become imminent today. 60% of businesses depend on email marketing to gain better ROI. So, keep an eye out for click-through rates, open rates, conversion rates, unsubscription rate, growth rate, etc. Also, evaluate spam complaints, engagement rate, forwarded emails rate, and revenue per email. Update the landing pages and upload blog posts and videos on your SMB website. Check the website traffic, traffic sources, bounce rate, overall conversion rate, etc. Google Analytics, Statcounter, Moz, Crazy Egg, SEM Rush, Ahrefs, etc. are tools to help understand these digital metrics.
To view the original article in full, click on the following link: https://www.campaignmonitor.com/blog/email-marketing/2019/06/4-small-business-performance-metrics-every-owner-needs-to-know/