UWR 048 False metrics

In today’s episode, I am speaking about a false metrics. So, let’s dive in. There are so many things to be measured in our business. Literally everything you do can be measured in some way. Posts per day, engagement per posts, leads per day, ads print per day, ads print ROI, conversion rates, churn rates, people in our membership programmes, page likes, Facebook group members, sales a day, outbound messaging or calls a day, inbound calls a day, and the list goes on and on. But are you clear on what metrics you really need to measure for your business? Which ones help you understand if your profit plan will move to reality? What are the leading indicators in your business that if you hit, then you will hit your goals?

Things like your profit and loss statement, this is a lagging report. You can only look at that after it’s happened. You could only assess the numbers after it’s done, and you can’t change anything in the moment when you’re looking at your historic profit and loss statement. What you need to identify are which things you need to be tracking and managing your team to that are not lagging indicators, but are leading indicators? That means that if you achieve those things, your profit target gets hit and you have the take home you want. That might be Facebook group growth or outbound messages sent. It might be people registered for your monthly webinar, but whatever it is, wherever you spot the star of the stats that lead to the end goals, that is the metric that you really need to keep an eye on, measure frequently and often target your team on.

All other metrics, they are nice to haves. Yes, it is lovely to see our Facebook page likes increase, but if these have no links whatsoever to your target that you can identify, then they are just false metrics. Keep tracking them, by all means. See if there are correlations, by all means, but don’t put everything on those types of metrics where you cannot determine the path to the goals. Make the metrics that matter mean something, not the other ones.

So, I hope that this episode has been useful to help you think about the metrics that really matter in your business. Thank you so much for listening. Until next time, let’s find the clarity in your numbers, increase your wealth and get more money in your pockets.

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 Hello! 

I'm Annette Ferguson

Owner of Annette & Co. - Chartered Accountants & Certified Profit First Professionals. Helping online service-based entrepreneurs find clarity in their numbers, increase wealth and have more money in their pockets.

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