Have you thought about what data you’ll track in 2024? As a CEO and business owner, it's crucial to stay on top of your numbers. Without understanding what’s working and what’s not, your business can’t grow. You need to uncover everything about your business, from financials to customer behaviour. This blog post is about the importance of tracking key performance indicators (KPIs) and some insights on what to focus on in the coming year.
Why Tracking Data Matters
Knowledge is power in business. When you know what’s happening in your business, you can make informed decisions to improve it. Without this knowledge, you're essentially driving blind. Tracking your data helps you:
Understand your business’s performance.
Identify areas for improvement.
Make strategic decisions based on facts, not guesswork.
Measure progress towards your goals.
My Journey with Data Tracking
I started two e-commerce brands in 2020 and sold one at the end of 2023. Reflecting on my experiences, I realized how crucial it is to track the right data. In 2023, I planned to track 21 KPIs every fortnight, which proved overwhelming and unsustainable. However, this exercise helped me pull myself out of the day-to-day operations and think strategically.
Key Metrics to Track in 2024
After reassessing my approach, I’ve decided to track fewer but more impactful metrics in 2024. Here’s what I’ll focus on:
Audience Reach:
Why: Understanding how many people your social media accounts reach monthly helps gauge your brand’s visibility.
How: Track the combined reach of all your social media platforms.
Website Visitors:
Why: Knowing how many people visit your website shows the effectiveness of your marketing efforts.
How: Track the number of sessions on your website each month.
Revenue from Email:
Why: Email marketing is a powerful revenue driver.
How: Use tools like Klaviyo to track the percentage of total revenue generated from email campaigns.
Conversion Rate:
Why: Your website’s conversion rate indicates how well your site turns visitors into customers.
How: Regularly check your website analytics to monitor this metric.
Customer Acquisition Cost (CAC):
Why: Understanding how much it costs to acquire a new customer helps manage your marketing budget.
How: Divide your total marketing spend by the number of new customers acquired.
Email Engagement Metrics:
Why: Metrics like open rate, click rate, and spam complaint rate provide insights into your email campaign’s effectiveness.
How: Use Klaviyo’s benchmarks to monitor these metrics and adjust your strategies accordingly.
Lessons Learned and Adjustments
In 2023, my biggest mistake was tracking too many metrics. This year, I’m focusing on high-level data that gives a clear picture of my business’s health without overwhelming myself. For example, my average order value (AOV) and customer acquisition cost (CAC) are critical metrics. In November 2023, my CAC was 44% of my AOV, which, despite being high, is acceptable due to my high returning customer rate.
Practical Steps for 2024
Simplify Your Metrics: Focus on the most impactful data points.
Set Realistic Goals: Understand that tracking too many metrics can be overwhelming.
Regular Review: Set a schedule to review your metrics monthly to stay informed and make necessary adjustments.
Final Thoughts
Tracking the right data is crucial for the growth and success of your business. It helps you make informed decisions, stay on top of your operations, and strategically plan for the future. If you find data tracking overwhelming, consider starting with the key metrics I’ve shared. And if you need personalized support, don’t hesitate to reach out.
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