In my experience consulting with small businesses, I have noticed that many struggle with keeping track of their sales data and statistics. They often have limited knowledge of their business’s performance, including how different areas are faring and where their business is coming from.
Monitoring sales data and performance is a crucial practice for small businesses that can significantly impact their success and long-term growth. By closely tracking sales data and evaluating performance, small business owners can gain valuable insights that enable them to make informed decisions, identify areas for improvement, and maximize revenue opportunities. In this article, we will explore the importance of monitoring sales performance for small businesses and how it can contribute to their overall success.
To get started, here are some critical numbers that small business owners should track every month:
New Leads & Revenue
- The total number of leads received in the past month.
- What are the sources of these leads, e.g. Social media, referrals, Ads, trade shows, events, networking, walk-ins etc
- How many leads converted to new business?
- What are the business opportunities closed from new leads.
- Average order value (AOV) – This is achieved by dividing business closed and leads converted to business.
Repeat Business Enquiries & Revenue
- What are the new enquiries received from your past customers?
- How many repeat enquiries resulted in business? – Not all repeat leads convert to business, so track this metric.
- Value of the business opportunities closed.
- Average order value (AOV) from repeat customers, as stated above.
Vertical Wise Business
Every business gets revenue from various verticals, product categories or industries. It is crucial for us to know where we are with our numbers every month. Here are the numbers to track.
- Revenue received from various verticals/product categories
- Revenue received from each Industry.
- Total business revenue received from all these verticals
- Track percentage-wise revenue contribution from each of these verticals. This is critical as you will know which vertical / Industry is working and which is not. This way, you can be on top of things and also know where you have to put your resources.
Goal Variance
- Map these revenue numbers in real-time with the GOALS you have created for the financial year.
- Track what percentage of the goal you have achieved so far and assess if you are on track with them.
Pro Tip
As a business owner, it’s essential to continuously develop new products or services. Although it may take some time for you to fully launch the new product / service but keeping a close eye on the progress and consistently promoting the new product / service will provide a valuable source of revenue for your business in the future. It’s recommended to track any income generated from new products separately from your existing revenue streams.
Monthly Review
In your monthly review, you must plan your actions based on the above numbers and work towards addressing the low-performing verticals. Create specific action plans for the low-performing verticals and either work yourself on these or delegate them to the right resource to manage them. Make sure to allocate some extra time towards it in the month.
Conclusion
Small businesses that aim for growth and success should prioritize monitoring their sales performance. By closely tracking sales data, evaluating performance, and making informed decisions, small business owners can identify strengths, address weaknesses, adapt to market trends, and maximize revenue opportunities. This practice enables them to avoid surprises at the year’s end, set achievable goals, and motivate their sales team.
Written By
Gagan Kapoor, Marketing Consultant & Corporate Trainer
As a consultant, Gagan works closely with Small businesses to help them improve their Marketing & Sales.
