The 5 Measurements That Can Grow ANY Business

I used to be a minimum-wage joiner and carpenter, working on a building site in the freezing cold back in Scotland and not enjoying life at all. But then I decided to step outside of the expectations that others had for me, I obsessed over learning a highly profitable skill, and now I run multiple businesses that each do eight figures a year. ??

Now, I’m not saying this to be all ‘I’m so awesome’… I’m saying this so you can see that I know what I’m talking about because I’ve spent years obsessing about it and learning the tricks and systems of this highly valuable skill! And today I want to share with you the five measurements I’ve found that can grow any business.

Now, I know when we start talking about numbers, a few of you reading this will go ‘nope, this is NOT for me’. Well, let me share with you a little secret… I’m not talking about being some crazy mathematician that knows all the different calculations and all that stuff. I’m talking about fourth-grade math. Fourth-grade math is more than enough to grow a business. Crazy right?!

So, yeah, your math teacher lied to you.

So there are five measurements that can grow any business. It’s so bloody simple. And if you can learn these five measurements and be able to advise and coach a business into focusing on where they need to focus. You’re going to become very valuable to a business owner. And you’re going to be able to get paid a lot of money to implement systems for businesses. And I didn’t say “for your time”. I said you’re you are going to implement systems for these businesses and then those systems do the work and that’s what it’s all about. So you probably want to know what the five measurements are, right?

So the first one is attention. How much attention is a business getting? The second one is how many leads is the business getting. So we first get attention online and then we take that attention, we engage that attention, we pull them through into becoming a lead. And that basically means that that lead has walked into the business … metaphorically.

So if this was a physical shop, they’ve walked in through the front door, that’s a lead. If it’s an online thing, they’ve put in their name, email and phone number and they are now in your world and you can actually market to them in your world and keep their attention.

So first was attention, then we have leads and then from there we obviously have sales. So how many leads turn into sales? So metaphorically, out of how many people walked into the shop… how many actually bought something? Right. So that gives you your lead-to-sale conversion rate, which is a massive metric for the business.

Then from there, the next metric we want to focus on is the profit margin per sale, right? So we want to know what the gross profit margin is - so how much does it cost you to actually make that sale? So what’s the cost of goods sold? We take the amount of cash that was received and take away the cost of goods sold. That gives us the gross profit margin.

We want to know that because that allows us to see how profitable we can be as a business. Then from there, what we want to do is we want to understand how many times a person comes back and buys from the business because that allows us to measure customer loyalty and customer retention rates, and if someone’s frequently coming back and buying more stuff from us, or if these subscribe to something they keep buying over and over again, then that’s a really good sign that your products or services are doing what they say they’re going to do.

Honestly, there are many other data points that we can look at here. But as a summary, these five cover pretty much everything that a business needs to grow. And if you can segment it down into this level of simplicity for yourself, if you’re a business owner or if you’re helping a business and you’re learning the skill of digital marketing. If you can add data, if you can add the skill of measuring data into your tool belt, you are miles ahead of most businesses.

Now, what I would love to share next is how valuable marketing is. So let’s just say a business owner is getting 100 people’s attention, right? And then ten people are converted into leads. That’s obviously a 10% conversion rate of people that we’ve got their attention into leads. And then let’s just say that those ten people buy so that means there’s a 10% conversion rate from linked to sales.

If you were to increase the amount of attention coming into that business, and then you were to increase the conversion rate from attention to leads, which is what marketing is. You’re going to get a much bigger result down the back end of the funnel, right?

You’re going to get more sales coming out, you’re going to get more profits coming out. And you’ve got a chance of if you’re getting more customers, more people are going to repeat buy because there’s more customers there. Right. That just logically makes sense. So an example, if you were to take that, you could take that amount of attention from 100 to 1000. And that’s easily doable through the skill of marketing and running ads online. Then you take the 10% conversion rate from the attention to the lead and you double that to 20. And again, that’s pretty realistic to do as well based on industry-standard data. So then you’ve just gone from having ten leads, right, to thinking about first people’s attention time that by 0.20, which is 20%.

You’ve got 200 leads now.

Now the sales conversion rate can just stay the same, right? You’re going to get a ton of sales coming in and a ton more profit. So what you’re going to be able to do here, if you learn the skill of digital marketing, is you’re going to be able to look at these metrics inside of a company and then you’re going to be able to show them, and prove to them that you can increase the number of profits that they have because you’re able to say, right, if we can increase the attention and then we can increase the leads, then you don’t need to change anything in the middle of your funnel. If that just stays the same, then this is going to equal more money. And that’s the perception of value.

And this is what you could be. This is what you call being of service to a business owner, making them aware of the data and their metrics and getting them really excited about getting to the end result of making that happen.

This is not rocket science, it’s just fourth-grade math. And as you can tell, I’m pretty bloody passionate about it because it’s life-changing when you learn this skill.

Now, if you learned these five measurements, and really understood them like how we teach them in The Digital Marketing School. You will be miles ahead of most business owners because most business owners do not know their numbers. And knowing this is one of the key skills that allowed me to go from being on that building site to being able to look at data and manage eight-figure companies, which is pretty bloody cool and I’m pretty proud to say that.

So my friend, hopefully, that served you. Hopefully, it’s inspired you to step up and start learning how to serve a business owner. Because if you learn, to serve a business owner, my friend, you’re going to set yourself up for life and you could do it in six months.

One of our students, James Wellington, after six months in the Digital Marketing School, made $650k in his pocket…. just from learning how to understand these 5 measurements and how to help business owners understand their numbers.

Crazy right? And you can do this too.

For more content on Digital Marketing or becoming a Digital Marketer, check out?The Digital Marketing School