If you know me at all, you know how important I believe it is to have specific, clearly defined goals.
Too often entrepreneurs set “fuzzy” goals for themselves. Then they wonder why they never know the exact steps they need to take to achieve them. They wonder why they get lost and never make progress.
It’s because they don’t set clear, precise goals.
Setting goals is paramount. So I’m going to assume you – as a budding strategic entrepreneur – have got your goals set and written down. And you’ve created a series of action steps that will move you toward that goal.
Well, you know the steps to take that will get you to your goal. But what you still might be uncertain about is how to increase your “velocity” in terms of getting there. How to make sure you’re on track to get to your goals as fast as possible.
Today I want to talk about a way to use the metrics you have, to make the actions you’re taking as specific and powerful as possible.
A different way of looking at and leveraging your metrics. So you can achieve your goals faster than you ever thought possible.
And the first thing we have to do is draw a distinction within the topic of metrics that you’ve probably never thought about before…
Rearview Mirror Metrics
Typically entrepreneurs use metrics to see how their business is performing. What every piece of their marketing campaign or funnel is returning to their bottom line.
But the reality of all these numbers is that they’re a picture of what has happened in the past.
Think of it this way. Any metric that tells you about people that have clicked to your page, opted in, bought or whatever – like click through rates or what your lifetime customer value is – are actually looking backwards. They’re telling you what happened.
And that’s critical to understand. But that’s where most people stop as far as looking at their measurements go. How did my funnel perform? How did my headline test do? Is it making me money? Is it making me more money than I did before?
To get velocity in your business, you need to start considering your metrics in a future tense. Rather than looking at them as a representation of what has happened, you need to think about them as a resource that will tell you what will happen.
Your Business “Cholesterol” Check
You want to think about your metrics as “predictive” measures or, for lack of a better way of describing them, “Cholesterol Metrics.”
The reason that predictive measures are sometimes labeled “Cholesterol Metrics” is because they serve the same purpose as the tests your doctor gives you at your annual checkup. He’ll check your cholesterol, your weight, your blood pressure and a whole bunch of other things. These are predictive indicators of your health. Things that can gauge the likelihood of a wide array of health problems, like a heart attack or a stroke, etc.
You want to think about metrics the same way in your business. What are the results your metrics are pointing to?
Now, in every business, it’s going to be different. But just as an example, in our webinar process we look at the number of opt-ins today as a predictive measure of what our sales are going to be over the next 7-14 days. The number of people that opt-in today, yesterday, tomorrow is a very good indicator for us of what we can expect in sales going forward.
When we’re dealing with affiliates, the number of affiliates slotted for the weeks coming also is a good indicator for us of what we can expect in future performance.
The point here is that if you don’t think about your metrics as predictive – what they’re telling you about what you can expect in the future – then quite often you end up being very surprised with your results. And that’s not necessarily a good thing.
You need to think of your metrics not only as an indication of what’s happened in the past, but also as a guide for what you want in the future. When you do that, you can use these metrics to really zero in on what you need to accomplish.
Plotting A Course For FAST Success:
Your Goals Within Your Goal
Let’s say for example you start thinking through what you want to achieve in the next quarter. You might start by setting an overall volume or revenue or profit goal. You want use the metrics that you have from the previous quarter (or the same quarter from the previous year) – the “backwards looking” metrics – to help you get clear on what it is that you need to accomplish going forward to achieve any new end goal.
So let’s say Strategic Profits earned $3 million dollars last quarter. And we want to set a goal to earn $5 million in the coming quarter. (Note: I’m just picking numbers at random for this example.) We know all our performance metrics from the past that earned us what we got. Next we need to look at all those numbers and determine what impact increasing any of them will have on our bottom line going forward. Which will have more impact. Which will have less.
We could determine how many more people would need to attend a webinar. Then, based on our show up rate, how many people would need to register for a webinar. Based on the percentage of people that register versus the number of people that don’t, we would know how many people we need to have to opt-in to get the Manifesto. And then based on that previous metric, we would know how much traffic in total we need to get to the page.
See how that works?
At each point of measurement, you have to figure out what changes in your results changes in your metrics will deliver. And then you need to focus on what to do to boost those metrics.
Doing this allows you to get very clear about the goals you need to achieve in every one of your metrics – how you need to perform at every stage of the marketing and sales process – to achieve the goals you set as fast as possible.
So, that’s the thought for today. Specific plans are necessary to move you forward toward your goals. And that planning gets a lot easier if you use your metrics to set specific goals to get there.
What do you think? Would leveraging your metrics as predictive numbers make a difference in your business. Let me know your thoughts in the comments below.
A Free Resource For You!
And speaking of metrics… My good friend Todd Brown – founder of MarketingFunnelAutomation.com – has just published a brand new report on key funnel metrics.
If you don’t know Todd, I consider him one of the top authorities on creating insanely profitable marketing funnels. He’s responsible for creating funnels for some of the biggest, most successful direct response marketers online today. His clients fly in to pay him $10,000 for a single day of consultation. That’s because he routinely delivers results that double, triple and even quadruple their ROI.
In this report he boils down that sea of metric confusion to the few key numbers you need to focus on to quickly create a viable, profitable and scalable funnel!
And right now, he’s giving it away. You don’t even need to opt in.
So if you struggle with any confusion in the world of metrics (and pretty much everyone does) just head to this page and download his free report.