Do You Have a Growing Business?

Each successful business, despite its many forms, is essentially a value engine with three stages:

  • Attraction: Are you attracting a steady stream of potential buyers?
  • Conversion: How many potential buyers are you able to convert to paying customers?
  • Retention: How many customers do you lose? How many of your current customers stay active with additional purchases?

If you consistently attract or retain more customers than you lose, you have an engine of growth. (Costs/Profits are also important but here I am focusing on a marketplace perspective.) Looking at these three numbers helps you quickly diagnose where you should be focusing your energy. And if you are developing a new business, you ultimately discover whether you have a viable business model or not.

Here are some examples of these three important indicators by industry:

  Attraction Conversion Retention
Ecommerce Search effectiveness Conversion rate to sales, Shopping cart abandonment Repeat purchases
Saas/Mobile App Sign-ups for free version Freemium to paid version Paid churn (% of customers you lose each month)
Marketplace/Distributor New sellers, New buyers Shopping cart size (no. items and $ amount) Top sellers, Top buyers
Professional services Prospects in funnel Contracts or Engagement letters Additional contracts
Retail store (bricks and mortar) Store traffic Sales per week Repeat customers
Consumer product Distributor agreements Sales per distributor Repeat purchases
Online Publication Number of readers, number of advertisers Clicks per ad Repeat reader visits, Advertiser churn

These three numbers provide a quick actionable snapshot of your business.

What key numbers do you look at regularly?  Share in the Comments section below.

Jeanne Rossomme
<p> Jeanne uses her 20 years of marketing know-how to help small business owners reach their goals. Before becoming an entrepreneur, she held a variety of marketing positions with DuPont and General Electric. Jeanne regularly hosts online webinars and workshops in both English and Spanish.<br /> <a href="" style="line-height: 1.385em;" target="_blank"></a><span style="line-height: 1.385em;"> | </span><a href="" style="line-height: 1.385em;" target="_blank">@roadmapmarketin</a><span style="line-height: 1.385em;"> | </span><a href="/author/jeanne-rossomme/all-posts" style="line-height: 1.385em;" target="_blank">More from Jeanne</a></p>


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