training. » what- what are the most important metrics to be watching? and how frequently? » why?...
TRANSCRIPT
![Page 1: Training. » What- What are the most important metrics to be watching? And how frequently? » Why? Running your business blind is a bad idea! » How? Where](https://reader036.vdocuments.site/reader036/viewer/2022062322/56649ea95503460f94bada5a/html5/thumbnails/1.jpg)
Using Critical Metrics to Maximize Your Business
Training
![Page 2: Training. » What- What are the most important metrics to be watching? And how frequently? » Why? Running your business blind is a bad idea! » How? Where](https://reader036.vdocuments.site/reader036/viewer/2022062322/56649ea95503460f94bada5a/html5/thumbnails/2.jpg)
» What- What are the most important metrics to be watching? And how frequently?
» Why? Running your business blind is a bad idea!» How? Where can this information be obtained?
![Page 3: Training. » What- What are the most important metrics to be watching? And how frequently? » Why? Running your business blind is a bad idea! » How? Where](https://reader036.vdocuments.site/reader036/viewer/2022062322/56649ea95503460f94bada5a/html5/thumbnails/3.jpg)
» We live in an information driven society.» Knowledge Economy- Billion $ Economy» Companies like Google, Intel, & Ericsson value their
data as much as service/product they provide.» AT&T
![Page 4: Training. » What- What are the most important metrics to be watching? And how frequently? » Why? Running your business blind is a bad idea! » How? Where](https://reader036.vdocuments.site/reader036/viewer/2022062322/56649ea95503460f94bada5a/html5/thumbnails/4.jpg)
» Data is Valuable For These Reasons˃ Data Aggregation˃ Risk Management˃ Digital Experience˃ Operational Agility˃ Cross Selling
![Page 5: Training. » What- What are the most important metrics to be watching? And how frequently? » Why? Running your business blind is a bad idea! » How? Where](https://reader036.vdocuments.site/reader036/viewer/2022062322/56649ea95503460f94bada5a/html5/thumbnails/5.jpg)
Christmas Decor’s Key Indicators (Metrics)» Marketing ROI» Retention Rates» Sales Closing Percentage» Average Sale» Gross Profit» Average Daily Production
What
![Page 6: Training. » What- What are the most important metrics to be watching? And how frequently? » Why? Running your business blind is a bad idea! » How? Where](https://reader036.vdocuments.site/reader036/viewer/2022062322/56649ea95503460f94bada5a/html5/thumbnails/6.jpg)
Christmas Decor’s Key Indicators (Metrics)» Marketing ROI
˃ Measures how effective your marketing campaigns are+ Individually+ Collectively
˃ Provides intel for future campaigns+ Content+ Timing+ Targets
» System Avg is $10:$1
What
![Page 7: Training. » What- What are the most important metrics to be watching? And how frequently? » Why? Running your business blind is a bad idea! » How? Where](https://reader036.vdocuments.site/reader036/viewer/2022062322/56649ea95503460f94bada5a/html5/thumbnails/7.jpg)
» Retention Rates˃ Identifies rate of returning business- LIFEBLOOD of Christmas Decor
+ Year Over Year+ Can be measured by count+ Or by dollars
˃ Provides info for budgeting˃ System Average is 73%
What
![Page 8: Training. » What- What are the most important metrics to be watching? And how frequently? » Why? Running your business blind is a bad idea! » How? Where](https://reader036.vdocuments.site/reader036/viewer/2022062322/56649ea95503460f94bada5a/html5/thumbnails/8.jpg)
» Sales Closing Rate˃ Measures how efficient your sales efforts are
+ Are you missing too many opportunities+ Gauge of sales cycle+ Identifies top/low performers+ Allows for adjustments
– Marketing Target– Presentation– Pricing
+ System Average is 52%
What
![Page 9: Training. » What- What are the most important metrics to be watching? And how frequently? » Why? Running your business blind is a bad idea! » How? Where](https://reader036.vdocuments.site/reader036/viewer/2022062322/56649ea95503460f94bada5a/html5/thumbnails/9.jpg)
» Average Sale Amount ˃ Average of all sales to date
+ Useful for budgeting going forward+ Useful in conjunction with sales closing rate
– Hi Closing + Low Avg Sale= Poor Outcomes+ Creates Standards
˃ System Average= $1389
What
![Page 10: Training. » What- What are the most important metrics to be watching? And how frequently? » Why? Running your business blind is a bad idea! » How? Where](https://reader036.vdocuments.site/reader036/viewer/2022062322/56649ea95503460f94bada5a/html5/thumbnails/10.jpg)
» Gross Profit˃ Revenue less materials and labor (our standard definition)
+ Adjust ratio of these 2 components˃ Foundation for profitability˃ 55%
What
![Page 11: Training. » What- What are the most important metrics to be watching? And how frequently? » Why? Running your business blind is a bad idea! » How? Where](https://reader036.vdocuments.site/reader036/viewer/2022062322/56649ea95503460f94bada5a/html5/thumbnails/11.jpg)
» Average Daily Production˃ Revenue installed per day per crew˃ Indicator of productivity˃ Directly correlates to profitability˃ Improves use of limited operation time˃ System Average= $2339 (blended average)
What
![Page 12: Training. » What- What are the most important metrics to be watching? And how frequently? » Why? Running your business blind is a bad idea! » How? Where](https://reader036.vdocuments.site/reader036/viewer/2022062322/56649ea95503460f94bada5a/html5/thumbnails/12.jpg)
» Lessens decision cycle» Increases revenue» Lowers operating costs» The bottom line IS the bottom line- Leads to
profitability
Why
![Page 13: Training. » What- What are the most important metrics to be watching? And how frequently? » Why? Running your business blind is a bad idea! » How? Where](https://reader036.vdocuments.site/reader036/viewer/2022062322/56649ea95503460f94bada5a/html5/thumbnails/13.jpg)
» Marketing ROI˃ As a ratio: Total Revenue/ Total Cost
+ EX: $10,000 Sales/ $1,000 Marketing Cost= 10:1 ratio˃ Must track every campaign/tool and service˃ Track Lead Origination & Record
+ Train Staff to ask+ Use campaign identifiers
How
![Page 14: Training. » What- What are the most important metrics to be watching? And how frequently? » Why? Running your business blind is a bad idea! » How? Where](https://reader036.vdocuments.site/reader036/viewer/2022062322/56649ea95503460f94bada5a/html5/thumbnails/14.jpg)
» Marketing Campaign Report˃ Quantifies campaign results for you˃ Exportable for further analysis˃ Requires front end work, but yields HUGE back end results˃ Must preserve data integrity for quality results
How
![Page 15: Training. » What- What are the most important metrics to be watching? And how frequently? » Why? Running your business blind is a bad idea! » How? Where](https://reader036.vdocuments.site/reader036/viewer/2022062322/56649ea95503460f94bada5a/html5/thumbnails/15.jpg)
![Page 16: Training. » What- What are the most important metrics to be watching? And how frequently? » Why? Running your business blind is a bad idea! » How? Where](https://reader036.vdocuments.site/reader036/viewer/2022062322/56649ea95503460f94bada5a/html5/thumbnails/16.jpg)
![Page 17: Training. » What- What are the most important metrics to be watching? And how frequently? » Why? Running your business blind is a bad idea! » How? Where](https://reader036.vdocuments.site/reader036/viewer/2022062322/56649ea95503460f94bada5a/html5/thumbnails/17.jpg)
» Retention Rates˃ (Current Year Sales/ Previous Year Sales)x100= Retention Rate
+ Customer Count+ Dollars+ Or BOTH
˃ Requires accurate records of years being measured
How
![Page 18: Training. » What- What are the most important metrics to be watching? And how frequently? » Why? Running your business blind is a bad idea! » How? Where](https://reader036.vdocuments.site/reader036/viewer/2022062322/56649ea95503460f94bada5a/html5/thumbnails/18.jpg)
» Retention Rates˃ LightRight’s Customer Retention Report
How
![Page 19: Training. » What- What are the most important metrics to be watching? And how frequently? » Why? Running your business blind is a bad idea! » How? Where](https://reader036.vdocuments.site/reader036/viewer/2022062322/56649ea95503460f94bada5a/html5/thumbnails/19.jpg)
![Page 20: Training. » What- What are the most important metrics to be watching? And how frequently? » Why? Running your business blind is a bad idea! » How? Where](https://reader036.vdocuments.site/reader036/viewer/2022062322/56649ea95503460f94bada5a/html5/thumbnails/20.jpg)
![Page 21: Training. » What- What are the most important metrics to be watching? And how frequently? » Why? Running your business blind is a bad idea! » How? Where](https://reader036.vdocuments.site/reader036/viewer/2022062322/56649ea95503460f94bada5a/html5/thumbnails/21.jpg)
» Sales Closing Rate˃ (Accepted Orders/ Proposed Orders)x 100˃ Requires thorough record of interactions
+ May require office to handle sales call scheduling+ ALL interactions need to be recorded- even the unqualified
How
![Page 22: Training. » What- What are the most important metrics to be watching? And how frequently? » Why? Running your business blind is a bad idea! » How? Where](https://reader036.vdocuments.site/reader036/viewer/2022062322/56649ea95503460f94bada5a/html5/thumbnails/22.jpg)
» Sales Closing Rate˃ Sales Closing Report˃ Tracks sales staff progress˃ Only useable if all interactions are recorded˃ System generates accurately as long as all orders in input
How
![Page 23: Training. » What- What are the most important metrics to be watching? And how frequently? » Why? Running your business blind is a bad idea! » How? Where](https://reader036.vdocuments.site/reader036/viewer/2022062322/56649ea95503460f94bada5a/html5/thumbnails/23.jpg)
![Page 24: Training. » What- What are the most important metrics to be watching? And how frequently? » Why? Running your business blind is a bad idea! » How? Where](https://reader036.vdocuments.site/reader036/viewer/2022062322/56649ea95503460f94bada5a/html5/thumbnails/24.jpg)
» Average Order Amount˃ Total revenue / number of orders˃ Requires meticulous record keeping
How
![Page 25: Training. » What- What are the most important metrics to be watching? And how frequently? » Why? Running your business blind is a bad idea! » How? Where](https://reader036.vdocuments.site/reader036/viewer/2022062322/56649ea95503460f94bada5a/html5/thumbnails/25.jpg)
» Gross Profit˃ Total Revenue – materials-labor= gross profit
+ Overall GP+ By job
˃ Requires detailed record of materials used, including IAC˃ Detailed Record of labor- hours worked & rates paid
How
![Page 26: Training. » What- What are the most important metrics to be watching? And how frequently? » Why? Running your business blind is a bad idea! » How? Where](https://reader036.vdocuments.site/reader036/viewer/2022062322/56649ea95503460f94bada5a/html5/thumbnails/26.jpg)
» Job Costing Report˃ Generates per job gross profit
+ Includes all materials+ Includes all labor, including take down
˃ Investment in tracking crucial info offers significant payoff!
How
![Page 27: Training. » What- What are the most important metrics to be watching? And how frequently? » Why? Running your business blind is a bad idea! » How? Where](https://reader036.vdocuments.site/reader036/viewer/2022062322/56649ea95503460f94bada5a/html5/thumbnails/27.jpg)
![Page 28: Training. » What- What are the most important metrics to be watching? And how frequently? » Why? Running your business blind is a bad idea! » How? Where](https://reader036.vdocuments.site/reader036/viewer/2022062322/56649ea95503460f94bada5a/html5/thumbnails/28.jpg)
» Average Daily Production˃ Likely the most mis-understood metric in our system˃ Total Revenue/ total # of crew days= ADP
+ Total Crew Days= aggregate total of days worked per crew˃ Requires close tracking of crew activity, inside and outside of Christmas
Decor business
How
![Page 29: Training. » What- What are the most important metrics to be watching? And how frequently? » Why? Running your business blind is a bad idea! » How? Where](https://reader036.vdocuments.site/reader036/viewer/2022062322/56649ea95503460f94bada5a/html5/thumbnails/29.jpg)
» Productivity Report˃ Only tracks days crew worked
How
![Page 30: Training. » What- What are the most important metrics to be watching? And how frequently? » Why? Running your business blind is a bad idea! » How? Where](https://reader036.vdocuments.site/reader036/viewer/2022062322/56649ea95503460f94bada5a/html5/thumbnails/30.jpg)
![Page 31: Training. » What- What are the most important metrics to be watching? And how frequently? » Why? Running your business blind is a bad idea! » How? Where](https://reader036.vdocuments.site/reader036/viewer/2022062322/56649ea95503460f94bada5a/html5/thumbnails/31.jpg)
![Page 32: Training. » What- What are the most important metrics to be watching? And how frequently? » Why? Running your business blind is a bad idea! » How? Where](https://reader036.vdocuments.site/reader036/viewer/2022062322/56649ea95503460f94bada5a/html5/thumbnails/32.jpg)
» Use systems designed to track data/yield reporting» Only complete and accurate input will yield
accurate reports» Use data for operational agility and develop deeper
business» Identify indicators that are important to your
business
Best Practices