If your cookie business was launched a year ago, it’s high time you have a tracking check-up of the metrics that measure success for your cookie business. Tracking the metrics of your business is another way of saying, “Let’s find out what works and what doesn’t” within your company. Metrics can help identify areas where improvements need to be made, increase efficiency in your business plan template and demonstrate which products offer the highest profit models. Here are the metrics that matter in your cookie business:
1. Customer Satisfaction Score
Besides a big smile on the faces of your customers while eating your cookies, what else will indicate the customer satisfaction score? This metric is an important indicator of whether clients will return. To learn what your customers are thinking, offer a free giant cookie coupon to anyone who completes your online company survey. Take the results seriously and change what needs improvement, consider making operational changes, as well, to increase efficiency in your operations. Each change you make will improve your business.
2. Revenue Growth
Yes, this seems like an obvious metric; however, you may not be calculating the true revenue growth if you aren’t also tracking any significant increase or decreases in income. Keep an eye on the balance sheet and measure this metric regularly.
3. Inventory Turnover
Although it’s difficult to believe any cookies might not be selling successfully, you’ll want to measure the time it takes for each kind of cookie to sell through. If your inventory of a particular type of cookie is standing instead of selling, you’ll want to make necessary changes in your product line.
4. Customer Lifetime Value
This metric measures how much revenue will be generated over the lifetime of the company-customer relationship. In other words, if one of your daily customers is crazy for chocolate crumble cookies and buys cookies regularly, you’ll want to measure that steady revenue as a “lifetime value,” because the customer is loyal to your brand. Although this metric is a forecast, it can be used to measure past and present sales, as well.
Tracking the metrics of your cookie business is almost guaranteed to be a satisfying one, for many reasons besides the growth of your business, because measuring your metrics translates to your attention to growth, efficiency and future trends. Tracking metrics will continue to make your cookie company one sweet dessert.