If you own a record label company, your world is turning faster than, well, a record on the turntable. The performance of your fast-moving machine needs to be evaluated often to ensure the business is on the right track toward growth. In addition to completing this record label business plan as a guide, check out the metrics that follow:
1. Lead Response Time.
In the record label industry, it is crucial to know how long it takes reps to contact a new lead.The faster a rep responds to an inquiry; the more responsive that contact will be. Measure the length of time between leads and response and make improvements, if needed.
2. Growth Rate.
Year-over-year growth is especially important for businesses in a startup or growth phase, as it indicates the health of a young company. Compare the results to industry milestones to determine either the on-target results or need for higher rates of growth.
3. Client Acquisition Rate.
How much does it cost to turn a potential label client into a client under contract? Measure the amount of money spent per potential client to determine the rate and adjust if the rate is high in proportion to the number of clients signed.
4. Client Retention Rate.
Although clients are under contract, re-signing is not guaranteed. Does the record label company lose any clients? Retaining clients is especially crucial, as the costs of creating and promoting adds to the bottom line expenses of a contractual agreement. Measure this metric to keep clients satisfied with the relationship, holding investments of time and money in place.
These metrics are critical for a record label company to examine and improve, if needed. Check them twice a year for optimal performance.