Can you picture the growth of your photography business? If so, it’s time to make improvements to build success. Use this photography business plan to add to the structure of growth, as well. Here are key metrics to grow your photography business:
1. Sales Revenue
This metric is easily identifiable: subtract any damaged or returned items from the total sales income to determine the sales revenue. This metric defines the place your photography business holds in the marketplace.
2. Net Profit Margin
Increasing profit indicates growth potential. Total the cost of sales and subtract that amount from the sales revenue to indicate the net profit margin. If this result is low, decrease costs or increase prices.
3. Customer Acquisition Rate
Determine the costs to acquire new customers by dividing the cost of marketing for a given period of time by the number of new customers acquired during that same time. If the costs are high; change marketing strategies or increase social media marketing to lower the costs.
4. Customer Referral Rate
A photography business relies on referrals to grow. Measure the number of all customers in a month and subtract referral customers. The results will indicate the strength of referral customers. To improve, post photos privately as samples and allow potential referrals to view.
5. Customer Retention Rate
Measure the rate of retained customers by dividing the number of customers at the beginning of a 6-month period into the number of new customers during that time. Subtract that from all customers at the same time. If the number is low, increase services and offers to ensure customers are satisfied.
These metrics are a snapshot of your photography business; check them often to stay on track while moving toward success.