If you want to exponentially grow your clothing line business, there are metrics to measure the performance, hone in on improvements, and verify the activity of your business. Use this clothing line business plan to structure your company for long-term growth, as well. Let’s get started!
1. Customer Satisfaction Score
This invaluable metric measures how satisfied customers are with the quality of your merchandise. Place the business email address on product labels requesting feedback. Tabulate the ratio of positive to negative reviews. If you receive negative views on any one issue or item, make improvements as needed.
2. Conversion Rate
This metric indicates the percentage of potential customers who complete a purchase, outlining how marketing strategies are performing. The conversion rate will equal the number of new leads per month divided by the number of new customers per month. If the rates are low, improve the quality of materials, website messaging, or increase your social media presence.
3. Sales Revenue
This informative metric will indicate the revenue earned in total. Subtract the value of returned or damaged items from the total sales income to learn the sales revenue for your business. Sales revenue indicates how well your products are performing in the marketplace.
4. Net Profit Margin
The “bottom line” profit is the key metric to examine when growth is your aim. Calculate all sales costs and subtract from your monthly revenue. The result will be the amount of profit received. If this number is low, raise it by increasing the price of goods or reducing the production costs. The higher the profits; the faster growth can take place.
By measuring the metrics for customer satisfaction, marketing strategies, sales and profit, you’ll be able to adjust and make improvements to directly benefit plans for scaling your business.