We’ve looked recently at strategies and systems that can help you manage your business more effectively. But how do you check to see whether you’re actually making a difference? Here’s some examples of how successful businesses use measurement to check that they’re on the right track.
Measuring your financial position
When you run a small business, it’s important to calculate your profit margin and you can use this to help you grow your business. But there are other measures to consider that are equally useful. If you’re a FreeAgent user, you’ll already be checking things like your cashflow, business expenses and billing through the Overview screen, but this article from Inc offers some great tips for measuring your financial data effectively - and highlights how some companies use a combination of financial and operational metrics to determine exactly how they are performing.
Understand how satisfied your customers are
Expanding your customer base is an important way to grow your business - but it’s equally important to make sure your existing customers are happy. Research from customer service software company Zendesk shows that 95% of people share bad customer experiences with others, while 39% avoid vendors who they have a bad encounter with. So why not try measuring the effectiveness of your support channels alongside a wider customer survey, as detailed in this article from Help Scout?
Measure employee morale
If you employ people in your business, you’ll want them to be as productive as possible - but you may also want to consider measuring how happy they are at work. Research suggests that high staff morale can increase productivity, so why not regularly survey your employees and measure their responses, like car giant Volvo does? And don’t forget to consider unusual factors too, like ShortStack CEO Jim Belosic - who measures staff morale by looking at how often his office arcade games are played.
Checking your social media impact
If you use Facebook or twitter for your business, you probably try to measure the ultimate effect that these channels have on your bottom line. But there could be many other important metrics to consider when it comes to social media. This blog from digital evangelist and Market Motive co-founder Avinash Kaushik looks at how to check the conversation and amplification rates of your social channels, as well how to measure the “applause rate” they have on customers.
Is there something that you measure in your business which you find particularly useful? Hit us up on twitter or leave a comment to let us know. Have a great weekend everybody!