Most companies track numbers such as turnover, net profit margin and gross profit margin but in this episode, Shaz shares the numbers that you should and must be tracking if you want to increase profit and bring more equity to your business.

Businesses often spend time trying to reduce the cost of marketing and generating leads but is this what you should be doing? Listen in and hear about exactly how to track the numbers that make a difference.

 

KEY TAKEAWAYS

• Cost per lead – how much does it cost you to generate a lead? Look at the individual marketing strategies and identify the cost of each marketing activity.
• Cost per sale – how much are you spending on the client between them being a lead and becoming a customer.
• Transaction size and frequency - How much is someone ordering when they place an order and how many times per year do they place an order.
• You need to look at both the frequency and transaction size for each customer
• A higher cost lead could give you a customer with a higher transaction size
• Total customer lifetime value – compare this with the cost of the customer lead.  
• Once you have the real value per customer you can work out your margins and know what you want to pay to get a customer.
• When you have refined your marketing to focus on the more valuable leads you will generate and convert more leads to valuable lifetime customers.
• Tracking these numbers will increase the profit and net value of your business, you are adding more equity and value to your business making it worth more.

 

BEST MOMENTS

‘If you understand exactly the value of each customer you will be ahead of most of your competitors’

‘A higher cost lead could give you a customer with a higher transaction size’

 ‘How much are you spending to get them to be a customer?’

 

VALUABLE RESOURCES

[email protected]

 

ABOUT THE HOST

Shaz Nawaz is a serial entrepreneur; he owns five thriving businesses in diverse sectors.

Shaz is committed to helping business owners build successful businesses. Having conducted over 3,000 business growth consultation he has helped his clients generate millions in additional profits. His purpose is to inspire business owners to build businesses that are hugely profitable and sustainable.

He is a huge advocate of having multiple streams of income. He has written a number of business books and regularly contributes articles to mainstream media outlets.

You can find Shaz on:

•   Facebook

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  YouTube.