the 3 metrics you need to know for major success

The 3 Metrics You Need to

Know for Major Success

Numbers should always be a top priority for you and your business.

We’re all about metrics

-that’s sort of the same thing as numbers, in a cooler, more hip business-

speak sense-

and helping businesses better establish proper numbers so they can generate higher revenue.

Here are the 3 most critical numbers to your business and success. 

Your Cost Per Acquisition (CPA)

Your Average Order Value (AOV)

Your Customer Lifetime Value (CLV)

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These 3 little terms are the very LIFEBLOOD of what you do!

If your sales funnel is in place and you’re getting a significant amount of leads, but not making a profit, one of these numbers is most likely out of order.

It is usually the CPA vs the AOV.

Example - If you’re spending $2.00 to acquire a customer, but on average that customer is only spending a $1.00 with you, that’s a proven formula for going out of business fast.

You might be able to make up the difference over time in the CLV.

Most businesses are not set up to take a hit for a long period of time though. 

With the expenses of running a business they can’t keep their head above water while waiting for long-term revenue to come in.

Good, solid, thriving businesses leave money on the table because they simply do not know what the metrics are.

Or how to change them for the better.

Now you may be asking, “Conversion rate is what it’s all about, right?”

Actually, when it comes to these 3 metrics conversion rate is the least important.

Here’s a case study explaining why.

Here are some conversion numbers from a campaign we ran for a client.

(Name blurred for privacy)

As you can see, we only pulled a 2.5% conversion rate and that’s usually nothing to brag about.

HOWEVER…

This same campaign resulted in a whopping $111,000 in collected revenue and $300,000 of contracted income – all from a measly 2.5% conversion rate.

Even though the conversion rate was not spectacular, the return on investment (ROI) was more than satisfactory.

Why?

The metrics were known.  

When it comes to your business, it doesn’t matter if you’re converting at .02% or 2% or 20%.

If you’re metrics aren’t in line, you’re headed down a slippery slope that could end poorly.

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