Marketing a product involves a lot of communicating to customers how you will solve their problem with your product or service.
If your a window cleaner you’ll be communicating how clean your customers windows will be if you clean them on a regular basis.
But as a small business owner are you actually measuring whether you are solving the problem for your customers?
You might think revenue or profit shows will tell you this but it’s not a perfect indicator.
If your revenue is going up then likely you are solving customers problems but it could attributed to greater marketing spend recruiting new customers and you are still suffering churn (customers using once or twice and then stopping being customers).
Or profit can be maximised even when the numbers of customers is reducing but costs are also dramatically cut behind the scenes.
None of these things make for a successful business long term.
Thats why you need to find the indicator that shows you are solving a customers problem because with that you’ll be able to maximise value and grow the business long term.
This indicator might change depending on your product or sector but one reliable measure that is worth exploring in the first instance is the customer retention or reorder number.
If customers are coming back again and again they are usually benefiting from your offering.
Equally, customer referrals could also be a reliable indicator as people will only tell friends about useful or successful products not those they deem inferior.
But for your business the important thing is to explore which of these options or others might provide the most reliable indicator that your business is actually helping customers and continue to track that.
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