Did you know there are metrics that will inform progress and indicate improvements in your online jewelry business? Surprise! The following metrics offer keys to increase your profit and grow your business.
1. Sales Revenue
This is the first metric you will want to determine about your business. To do so, subtract the cost of defective or returned products from the total sales during one month. The resulting number is the sales revenue. If you are a startup and can’t yet calculate sales revenue, learn how to start a jewelry business with this plan (and we wish you success!).
2. Net Profit Margin
This is the second metric you will want to calculate for your online jewelry business. This key metric will indicate how much profit is generated. Subtract all sales expenses from the sales revenue to reveal your profit. If your profit is low, either increase prices or decrease sales expenses. If your profit is on-point, well done!
3. Customer Acquisition Cost
Now, measure your marketing strategies by totaling the cost of all marketing efforts and divide the number of new clients from the total cost. The resulting number indicates your customer acquisition cost, the amount spent to acquire new customers. This metric will indicate if there is a need to improve marketing tactics or refine sales techniques.
4. Customer Retention Rate
Knowing the cost of acquiring customers leads to the customer retention rate metric. During a one-month period, total the number of all customers and subtract the new customers from the total. The resulting number are returning customers for your jewelry business. Returning customers are the true jewels of your business; devise special promotions to keep them coming back.
5. Website Traffic
Finally, calculate perhaps the most important metric, website traffic, to measure and fine tune your online jewelry business. Purchase marketing tools or use Google Search Console to measure the number of customers who visit the website. To improve traffic, you can consider increasing the marketing budget, improving the SEO of your website, and building your social media presence.
Use metrics frequently as benchmarks of your business to freely switch marketing strategies, increase tactics to improve website traffic, and recognize loyal customers with discounts and specials. Using metrics to measure and determine improvements, as needed, will bring your online jewelry business to a new level of profitability, growth and success.