Not all metrics are the right metrics
Posted: Mon Dec 23, 2024 6:57 am
Also read: Lean is difficult, what is the role of leadership?
An important part is how to formulate the right marketing message. We still struggle with that and we don't think we're there yet. For our website, the concept of employee advocacy still needs a lot of explanation. It would have helped if we had started the conversations with our target group earlier. Based on those insights , we could have formulated the right message better.
Once you have started your market development, it is important to start measuring. As in the Lean Startup method (aff.) by Eric Ries, it is explained that not all metrics are the right metrics. For example, it is common to measure the number of unique visitors, reactions and likes (so-called vanity metrics ), while the final conversion such as sales, turnover, costs are the actual figures you should be steering on.
Of course profit is an important figure (primary hospital cio email list figures), but also think about sales per product, conversion rate per sales page and average cost per visitor per advertising channel. These are the secondary figures on which you can indirectly work on the profit and growth of your company.
From my own company, we should be able to steer much better on these figures. Since our development went with fits and starts, it did not seem the time to be working on this yet. Now that sales are starting to take off, we have to tackle this as one of the first things, because otherwise we do not have a good view of the development and growth of our company. A good tip is to rate bottlenecks in your company , as well as the goals of your website. The higher the rating, the more important it is to solve and pay attention to.
Don't start with a website
Many entrepreneurs, including us, start building a website right away because this seems like the most logical product. However, starting with a website is an expensive start and does not immediately give the best chance of success. It is better to keep to the order mentioned above.
If you are going to start a site and invest, start with a minimum viable website. What are the minimum requirements needed to be able to sell via a website? Our company has such a minimal site. Unfortunately, our priorities always go to the back-end of the tool and the current front-end is in dire need of replacement. Fortunately, when you read this, the go-live is already in the planning, because the site has been a thorn in our side for a long time.
An important part is how to formulate the right marketing message. We still struggle with that and we don't think we're there yet. For our website, the concept of employee advocacy still needs a lot of explanation. It would have helped if we had started the conversations with our target group earlier. Based on those insights , we could have formulated the right message better.
Once you have started your market development, it is important to start measuring. As in the Lean Startup method (aff.) by Eric Ries, it is explained that not all metrics are the right metrics. For example, it is common to measure the number of unique visitors, reactions and likes (so-called vanity metrics ), while the final conversion such as sales, turnover, costs are the actual figures you should be steering on.
Of course profit is an important figure (primary hospital cio email list figures), but also think about sales per product, conversion rate per sales page and average cost per visitor per advertising channel. These are the secondary figures on which you can indirectly work on the profit and growth of your company.
From my own company, we should be able to steer much better on these figures. Since our development went with fits and starts, it did not seem the time to be working on this yet. Now that sales are starting to take off, we have to tackle this as one of the first things, because otherwise we do not have a good view of the development and growth of our company. A good tip is to rate bottlenecks in your company , as well as the goals of your website. The higher the rating, the more important it is to solve and pay attention to.
Don't start with a website
Many entrepreneurs, including us, start building a website right away because this seems like the most logical product. However, starting with a website is an expensive start and does not immediately give the best chance of success. It is better to keep to the order mentioned above.
If you are going to start a site and invest, start with a minimum viable website. What are the minimum requirements needed to be able to sell via a website? Our company has such a minimal site. Unfortunately, our priorities always go to the back-end of the tool and the current front-end is in dire need of replacement. Fortunately, when you read this, the go-live is already in the planning, because the site has been a thorn in our side for a long time.