No matter what industry you operate in, it is so important to look for ways to continue to move forward at all times. This blog post helps you to do just that with a collection of useful tips. So, let’s take a look…
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How to choose the right KPIs
As a small business owner, one of the most important things you need to determine is your Key Performance Indicators (KPIs). This is vital for measuring the performance of your business and ensuring you make the right moves in order to grow. With that being said, here are some tips on choosing your KPIs.
- Focus on fewer variables – A lot of business owners make the mistake of choosing as many KPIs as possible. However, measuring against a huge number of metrics is not the answer to a successful business. It is better to choose between three and five variables that matter and that you can impact.
- Identify your audience – It is imperative to identify your audience, as your KPIs are going to differ based on your audience. It is a good idea to have KPIs for financials, customers, and any other stakeholders.
- Make sure your metrics are tied to actions – If your KPI does not point you in the direction of where action needs to be taken, it is not a good indicator.
- Avoid vanity metrics – Vanity metrics are those that look impressive but they don’t really have any substance. You need KPIs that are going to reveal how to grow a business, not simply those that look good on paper. For example, the number of page views you receive may be a KPI you are considering, but is this something that is progressing your business to the next level? What if you receive a large number of page views, but very few make an order?
- Choose the right tools – Selecting the right software is crucial. You need something that shows you what KPIs are performing bad and which ones are performing well, as opposed to a static set of KPIs.
Using Social Media
In today’s digital age, businesses cannot ignore social media if they are to be a success. If you are wondering how to grow a business, having a dominant Internet presence is one of the number one things you need to achieve. But, how do you use social media to full effect?
There are numerous strategies you should deploy. Firstly, you need to be active on your social media accounts daily. The whole point of social media use for businesses is to make yourself more approachable to the consumer. This is not going to be the case if you are never active.
You also need to make sure that you don’t simply plug your products and services. In fact, the majority of your posts should be interacting with customers, industry-based, and customer service-based.
One thing that can really prove to be a help for small businesses is to analyse past posts. This is something you can do with ease now, as there is a wealth of tools available. You will be able to see how many people viewed the post, how many interacted with it, how many shared it, and how many clicked on the link. This will help you to see what type of posts are most successful and to identify any patterns, i.e. a time in the day that is most effective.
Our final tip on how to make a successful business using social media is to optimise visual content with links. Visual content can be a gateway to more valuable content, and people tend to respond better to it. However, you need to use pictures and videos to drive traffic back to your website.
Customer Retention
Customer retention rates are so important for small businesses. However, the average business loses approximately 20 per cent of its customers per annum. One of the best ways to grow a business is to focus on customer relationships, and below we will provide you with some top tips on doing so.
You cannot grow your business by over-promising and under-delivering. This is where a lot of businesses go wrong. They over-promise in an attempt to secure more customers, but, in the end, the customers end up disappointed when the business does not live up to the high expectations they have set. You need to set accurate expectations, and you need to set them early. This will eliminate uncertainty and help you to hold onto your customers.
You also need to show that you care about your customers as people. A personal touch can go a long way. No one wants to feel like they are simply a sales generating object or a piece of data; you need to connect with your customers on a human level.
You should also be an expert in your field. Don’t attempt to be a jack-of-all-trades, so to speak. If you become a trusted source in your area of expertise, customers will come to depend on you, and they will see you as an integral part of their success.
Remember, the suppliers you work with have an impact on how your customers feel too. This guide provides information on one element of this – shipping. Imagine if customers receive their products late or the delivery person is rude – you’re going to struggle to retain their business, right?
Remain on the radar even after a transaction has been made. A lot of businesses are guilty of taking the money and running. Once a sale has been made, you should continue to communicate with the customer. You can send them newsletters and special offers, for example. This can lead to more sales in the future, and you will be able to collate important customer data that can help to move your business forward.
You should also send out customer surveys. After all, how do you expect to retain customers if you do not make an effort to find out what they want? Feedback is so important for every small business. However, customers often ignore surveys and, therefore, it is a good idea to offer an incentive, such as an entry into a prize draw.
The final piece of advice for boosting customer retention levels is to implement a loyalty program. Loyal customers deserve to feel like they are getting some sort of special treatment, and this is guaranteed to make them come back time and time again. Too many businesses focus on enticing new customers with special deals, but they forget about their loyal customers.