ask a question

Best Practices


KEY METRICS         Find the Pulse of Your Business




Key Metrics to Understand Your Business - Winsby Inc. Blog
tracking key metrics

Analytics Are the Pulse of Your Business


For many companies, analytics take a back seat when it comes to their marketing and customer service efforts. Many don't take the time to analyze the data, or they look at superficial metrics instead of the ones that really matter. They often fail to see the correlation between customer retention, marketing efforts and sales results. At Winsby we see a close correlation and think it's important to measure constantly how your business is being impacted by your sales, marketing and customer service.

At the end of the day, the only metrics that really matter are the number of customers, how many are new, your customer retention rate, your average order, how frequently your customers purchase, and whether the trends are going up consistently on a rolling twelve month basis. Looking at sales on this basis takes the seasonality out of any business.

Customer Retention
Acquiring new customers is typically far more expensive than selling to your existing customers. Keep your churn rate low for better long term success. New customers usually start out with smaller purchases to test you, so it's always easier to keep doing a good job with existing customers than it is to ramp up new customers.

New customers take three to five years before they can be categorized as a stable customer. Stable customers purchase six to ten times more and are ten times more likely to be retained year after year.

To understand what your customers are doing and when you are in danger of losing them, you have to look at key metrics. These numbers include how often they are purchasing from you, when was their last purchase, the range of products and services purchased, and their customer satisfaction score that indicates they are on their way out or will be retained.

At Winsby, we've developed an online portal where all your invoices are stored and updated monthly, so you can see trends and identify problems, then fix them. Our graphs show you 12 month rolling averages for revenue, number of invoices, and number of customers. Your sales representatives can go online and see the last time each of their customers purchased and how often so they can call them when they haven't purchased in a usual pattern.

If you are gaining more customers than you are losing, your 12-month rolling number of customers will be increasing. This metric is also important to monitor to make sure your customer retention is high.


Revenue Trends
Closely related to customer retention are revenue trends. What we've found at Winsby is that new customers within the past year constitute 51% of the customers a business has, 23% of transactions, and 25% of revenue. However, 61% of those do not purchase again over the next 12 months.

For the same company, people who purchase in the second year represent 20% of customers, 21% of transactions, and 17% of revenue. If you retain these customers in the second year then they more than double how often they purchase for rentals, service, and parts. During the third and subsequent years the frequency in purchasing more than doubles again for all categories.

Customers who have been doing business with a company for three or more years represent 58% of the company's revenue, 56% of the number of transactions, but only 29% of the number of customers. If you retain these customers in the third year and subsequent years revenue increases more than triple in all categories, except equipment where revenue nearly doubles.

Why is understanding these numbers important? Because they are ultimately what should be driving your sales team and your marketing efforts. Each year that you hold on to a customer makes them more and more lucrative to your business. That means you need to stay on top of them with sales calls, surveys, and targeted emails encouraging them to purchase from you again.


We Track Key Metrics
Tracking and analyzing your key metrics is what gives your sales team the tools they need to be successful. They don't know who to follow up with, unless they are alerted with the last time their accounts purchased. Many of them have a routine for following up with customers based on how often they should be purchasing. But how often are they purchasing?

At Winsby, we have a report online that tells your sales team exactly that information, organized by a sales rep. We also track the number of accounts you have and what categories of products and services they are buying. We've developed a Growth Score that predicts what will happen, based on your history, assuming things don't change. That's why we build our key metrics portal for easy access by our clients and include key metrics in our Core Program.

Analytics are essential for understanding what is working and what isn't working. Without the data, spending money on marketing is like shutting your eyes and just hoping it does some good. By measuring and making use of key metrics, you can be in the driver's seat for growing your business.




How to Spot Trends with Analytics - Winsby Inc. Blog

How to Spot Trends with Analytics

Using data to enhance your marketing

We talk a lot about analytics around here, but what does that really mean? In a nutshell, analytics is about finding patterns in data and then using that data to grow your business.

Understanding analytics for market trends
By using analytics, we spot market trends and help you make the most of them. We examine data from your industry to identify opportunities for you as an individual, pinpointing categories ripe for further growth and those where resources can be trimmed back.

For example, one trend we discovered showed equipment dealers' new customers steadily purchase parts, sales, and services straight away. They didn't buy heavy machines, however, until three years after first working with a dealer. Our data showed these customers wanted to know the dealer better before making such a big purchase.

Drawing on that data, we targeted our client's customers for machine buys just as they began thinking about it themselves. This approach secured more sales and boosted our client's bottom line.

Applying analytics to your business
Our analytics can also help boost individual product sales. If we see a certain item's not selling well, we can promote a sale to get it moving again. Conversely, if a certain product's selling well, we generate new promotions around that, enhancing customer retention.

We also conduct surveys to find out why sales are up or down, helping inform future marketing decisions. And on an even deeper level, we use analytics to tailor marketing messages to core customers while also augmenting messages to capture new markets.

With Winsby's insights from analyzing your data, you will know market trends before they start, helping you pivot to profit from changes faster and with zero stress. Either way you cut it, Winsby analytics is a vital tool for understanding your market, identifying strengths, and optimizing growth when and where you need it most.




Key Metrics that Are Often Ignored - Winsby Inc. Blog

Key Metrics that Are Often Ignored


You’re spending money on marketing and sales efforts. Is it working? Are you acquiring new customers and retaining the current ones? Are your customers purchasing more often? Are they purchasing more? Who hasn’t purchased within the normal timeframe? Are you identifying them and contacting them before they’re lost? What are the important metrics that you need to monitor to trigger responses that translate into growth?

Revenue
Look at your 12-month rolling revenue in order to take the cyclicality out of your numbers. Is there a steady climb?

Number of Invoices
The easiest place to reach for growth is your current customers. They already know you and trust you. They just need to shift more of their purchases to you! Again, the 12-month rolling average for number of invoices should be growing. If you are retaining your customers, and they are gradually purchasing more and more from you, you should be seeing an increase in the number of invoices that you are processing.

Number of Customers
If you are gaining more customers than you are losing, your 12-month rolling number of customers will be increasing. This metric is also important to monitor to make sure your customer retention is high.

Last Purchase Dates
When did your customers purchase last? Do your sales reps have the ability to monitor and check these dates? Without that information, they can’t be as effective as they need to be to make sure you don’t lose customers, by contacting them before they purchase elsewhere.

Monitor Your Metrics Online
Winsby has developed an online portal where all your invoices are stored and updated monthly, so you can see trends and identify problems, then fix them. Our graphs show you 12 month rolling averages for revenue, invoices and customers. Your sales representatives can go online and see the last time each of their customers purchased, so they can call them and find out if there’s a problem with your company or with their own sales.

Are price increases affecting your customer retention? You can see the trends quickly. What is your customer retention? What should it be?

We’ll review your results with you every month and point out issues that other companies aren’t having, so you can identify them quickly and get things back on track.




You know how to meet your revenue targets.


Here are some questions to consider:

Were your targets aggressive? Should you be reaching higher?
We can show you exactly what the potential growth is, base on your past transactions
We also provide ways of predicting the growth for next year to a 95% accuracy, when our suggestions are followed.

Are you retaining customers?
Winsby can show you what areas need help within your organization if you are seeing problems with retention

Are you growing your customer spend consistently
We have the statistical backup that outlines the most successful strategies to increase customer spend and transactions each year

    




We can show you exactly what you need to do to meet your revenue targets.


Here are some questions to consider:

Were your targets too aggressive? Do they make sense for your business?
We can show you exactly what the potential growth is, based on your past sales.
We also provide ways of predicting the growth for next year to a 95% accuracy, when our suggestions are followed.

Are you retaining customers?
Winsby can show you what areas need help within your organization if you are seeing problems with retention

Are you growing your customer spend consistently
We have the statistical backup that outlines the most successful strategies to increase customer spend and transactions each year