What are some measurements you use to gauge your business?

SenseiSteve

HD Moderator
Staff member
What are some measurements you use to gauge your business? Would those include return on your investment, churn ratio, closing percentage, website views, gross revenue, net profit ... ?
 
It's actually such a fantastic question that when I first read it in March, I had to leave it in my bookmarks. I knew I wanted to try to answer it, but didn't quite know how.

I am not operating a web hosting company, but I am trying to imagine what I'd pay attention to if I wanted to gauge its success.

While a ROI is always a great indicator, it may not be accurate enough if I am aggressively putting money in marketing/advertising. I could remove that cost from calculations, but then the ROI will be subjective as to the amount of money being spent isn't taken into account.

I would probably be watching a few things, but mostly three things: conversion rate, acquisition cost (in an attempt to bring it down) and how long a customer stays with the company. This will give me an understanding of revenue/profit per customer. If I am able to gradually increase this number (by upselling, among other methods), that would be incredible.
 

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