The Power of Numbers for business success
Numbers count. Well, yes, of course they do
Do you know all your crucial numbers?
You’re smart, so it’s probably safe to assume that you know your bank account balance before you pay bills. Your physical exam includes a blood pressure check and lab tests, which yield numbers to show how healthy you are.
If those numbers were not available, how confident would you be about your personal well being?
Important numbers measure your business’s health, too. And if all you have are the standard quarterly or even monthly reports like profit and loss, you’re missing some critical information.
Fig. bpm'online sales pipeline
What gets measured gets done. In his book, Traction - Get a Grip on Your Business, Gino Wickman recommends that everyone in an organization have a number as a measurable for a specific task. For instance, a receptionist’s number might be 2, as in “two rings good, three rings bad,” as a standard for customer service. A sales rep’s number might be the number of appointments per day you expect to be made.
Activities-based measurables set clear expectations. They create accountability, commitment, and even some healthy competition. A team can rally around numbers they’re expected to reach.
They also help leaders guide and adjust business strategy.
CRM systems like bpm'online, Infor CRM and ACT! feature a dashboard you can customize to track the measurables on your business’s scorecard. When you know the critical numbers at each stage of your pipeline, your business decisions will be smarter and quicker.
Wickman has three rules for establishing measurables to support your organization’s growth:
1. Create weekly activity-based numbers. What are the steps to a sale, or to a customer service outcome that delights the customer? Measure each activity. “If you merely track customer complaints or lost customers, that’s too late,” says Wickman.
2. Use your dashboard to anticipate problems, not just make them visible. A CRM like bpm’online, well-implemented, will show you a weak spot while it’s still small. As you collect months’ worth of weekly data, you’ll be able to more accurately spot and leverage positive trends as well as reverse negative ones early.
3. Flag numbers that are below par to either address them one on one with the responsible person or make them urgent agenda items at your next meeting, whichever is appropriate. Likewise, applaud team members who exceed the goal.
Are you capturing all the numbers you need to take the pulse of your business? Are you currently able to track them weekly?
To go from good to great, most businesses benefit from an experienced customer relationship development and business management partner coming alongside, helping determine what numbers they need to watch, then guiding the choice and implementation of systems that will capture and analyze the data.
Interested in learning more about business intelligence and analytics? Contact us today to better use your numbers to make smart decisions
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