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Success Must be Measured

4 key metrics can help you determine if your brand-building is working.
January 22, 2009
URL: http://www.entrepreneur.com/article/199732

There's an old saying in business that you can only improve that which you measure. It makes sense that if you set a goal to improve your performance or grow your revenue, you must keep track of how you're doing to know if you're moving toward that goal.

There are certain marketing elements every startup entrepreneur should track to grow and become more profitable. The key indicators are leads generated, leads converted, average dollar per transaction and average number of transactions per customer.

When you're just starting, the notion of tracking may feel like overkill. But focus and improvement spring from the habit of constant measurement. Start now to create your baseline. You'll find it much easier to focus your strategies and actions on the right areas of your business--the areas where you can get the most bang for your marketing buck.

Here's a little more detail on the four key metrics and how they can make a difference:

By boiling all your marketing efforts down to these four easily tracked numbers, you can set your sights on big-picture goals such as income and revenue, knowing that your activity is focused on the micro metrics that make growth inevitable.

John Jantsch is a veteran marketing coach, award-winning blogger and author of Duct Tape Marketing: The World's Most Practical Small Business Marketing Guide. Find out more at ducttapemarketing.com.