Increase Your Profits by 10X: 5 Key Metrics You Must Track
Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
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After working with over 300 online projects , I can guarantee: monitor these metrics weekly and your company will not only survive, but also increase its profits by 10 times!
In the context of sanctions and crisis, knowing email database lists australia the ROI of your advertising decides whether your business will be successful. Tracking these 5 critical indicators is the key to your prosperity.
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5 Key Metrics to Increase Profits by 220%
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It may seem strange, but the presence of large sums of money in the organization's accounts does not mean that the business is developing and generating good income. The same can be said about the other side - if at the moment there is a cash gap and there is a shortage of funds, this does not mean that the company is in crisis or is bankrupt.
From a financial and economic point of view, the efficiency of an organization is determined not only by its current material condition, but also by its entire economic structure as a whole, taking into account potential income and expenses.
The Importance of Assessing Enterprise Performance Indicators
Source: freepik.com
Different methods and calculation formulas are used to evaluate the results. Some of them are aimed at a comprehensive assessment, while others determine the profitability of a specific indicator. There are also methods that examine the productivity of employees. For example, the amount of sales of products for the previous month is a general evaluation criterion, and the number of transactions carried out personally by one of the sales managers is a specific indicator.
In practice, it can be quite difficult to correctly define KPIs, despite the fact that this approach has been used for a long time and very widely. If management makes a mistake in choosing indicators for assessing the effectiveness of the enterprise, or chooses incorrect methods for determining them, this can lead to an incorrect strategy for further development and the risk of financial collapse of the company.
For example, let's consider profit as an indicator of the efficiency of the enterprise. Its planned annual size can be obtained if additional discounts for clients are used. On the one hand, this will lead to an increase in product sales, but at the same time, commercial costs and logistics expenses will increase.
As a result, the profitability of the business will decrease significantly. This will automatically lead to a decrease in the company's competitiveness in the market, as a result of which the enterprise will most likely lose a certain market share next year.
The owners of the organization may consider such a decrease in profitability as their lost profit and make claims on this matter to the company's management. Therefore, it is necessary to evaluate the efficiency of the enterprise, summing up the annual results, and in case of its decrease, identify the reasons.
Objectives of the analysis of enterprise performance indicators
The goal of the enterprise is to achieve the planned result. The strategy for achieving it includes three main components:
main objectives of the activity;
the main elements of policy that set the direction or narrow the field of activity;
programming of key actions aimed at achieving the intended objectives and within the boundaries of the applied policy.
The goal set before the enterprise is usually expressed in the form of achieving some quantitative or qualitative indicators. This may be the sale of products for a given amount, the conquest of a certain position (market share, position in the rating, etc.), the value of the company itself as a market object, other results.
To achieve the set goals, the paths to them and the means are set, otherwise the company may start to act according to the principle "all means are good on the way" or "the end justifies the means". Such a policy can lead to serious negative consequences in a short time. Taking this into account, the leading place should be given to the principles of activity.
Increase Profits by 200%: Download 5 Powerful Tools for Free
Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
Read more posts on my personal blog:
Over the past 7 years, we have conducted over 23,000 comprehensive website audits and I have learned that all of us as leaders need clear and working algorithms for our marketing and sales.
Today we will share with you the 5 most valuable documents that we have developed for our clients.
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How to find out the 5 key marketing metrics in your company?
Step-by-step calculation template with fields where you can insert your data
How to make a KPI for a sales manager based on his work results?
Current template for calculating KPI for sales manager
9 Examples of Universal Selling Commercial Proposals
Upgrade your CPs to close more deals
Cold Lead Processing Script Template
A checklist of ready-made questions for engaging cold clients
7 Profitable Marketing Strategies Examples
Will help increase customer flow by at least 30%
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The rating of an enterprise is determined based on the indicators used in its calculation. And to find the market value of a business, its condition (resources, management and organization of activities, efficiency) must be taken into account, which is also determined based on the corresponding metrics. They are derivatives of the performance indicators (cost and ratin