Using Data to Drive Your Decisions
Running a business is hard. Running a business through a pandemic is even harder. With overwhelm and fatigue nearly inevitable, it may be difficult to know where to focus. Entrepreneurs often go for the ‘low hanging fruit’ just to check items off their to-do lists, rather than using their energy and resources in the most productive ways.
By regularly collecting your metrics and using that data to drive your business decisions, you can be sure your precious energy is spent where it counts. Every business should be tracking:
It’s important to be sure that each of your service categories (classes, appointments, retail, workshops, etc.) is independently profitable – after you’ve paid yourself. It can be tempting (and even smart!) to add new offerings, but be sure that once you’ve considered payroll, marketing, equipment and any other expenses associated with the service, it makes good financial sense to keep them.
Attendance and Revenue Per Visit
Do you know how frequently your customers visit your business and exactly how much you make each and every time they do? You should! Understanding how your clients use your services is key to setting smart and profitable pricing, so review and analyze this data often.
Retention is the measure of how likely your customers are to return to your business once they’ve had a taste of what you do. This is the most important data point, because it measures the quality of your service, the efficacy of your pricing strategy and the power of your marketing and sales processes. If you’re not keeping your clients around, this is the first metric to review.
All wellness entrepreneurs love what they do, but passion for your path and business smarts should never be mutually exclusive. The most successful businesses lead from the heart AND the head!