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How to Measure Growth in Your New Business

How to Measure Growth in Your New Business

If you are effectively running a business or company that requires careful planning, strategic decisions based on the past success of your business may help guide your company to future success and help it flourish. Calculating the growth rate of specific variables provides you with better insight into the present state of your company so that you can best plan for the future.

In this article, we discuss what a company’s growth rate is, the types of growth, and how to calculate the growth rate of a company.

CR API for Measuring Business Growth

You can utilize cr api on credit report pulling, which is made for companies that have permissible reasons to access consumer credit reports from the three credit bureaus: Equifax, Experian, or TransUnion.

Business and consumer credit reports both inform prospective lenders about creditworthiness and allow them to assess what risk they are taking should they give you a loan or credit card or extend “buy now, pay later” terms, but they differ in the types of details they contain and how that information gets used.

Business credit reports contain ownership information, subsidiaries, company finances, risk scores, and any bankruptcies and liens, beginning once it is incorporated and receives a federal tax identification number.

Consumer credit reports only deal with the specific information regarding an individual, such as their credit accounts, loans and credit cards, closed accounts, delinquent accounts, and any liens or bankruptcies.

Consumer credit reports aren’t public information, but business credit reports are.

Capitalization Tables for Measuring Business Growth

Having the answer to the question, what is a cap table is key to making sure that you can measure the growth of your new business. A capitalization table, or a cap table, is a spreadsheet showcasing the equity capitalization for an organization to make clear the breakdown of a company’s shareholders’ equity.

It is important to use a cap table to make sound financial decisions involving equity ownership, market capitalization, and market value.

Capitalization tables list out each type of equity ownership capital, the individual investors, the share prices, and possibly even hypothetical transactions, details on potential new funding sources, acquisitions, mergers, and public offerings.

In order to help measure the growth of your new business, making use of a capitalization table shows the total market value of a company and its components, which need to be regularly maintained.

Customer Service for Measuring Business Growth

If you aren’t measuring your customer service engagement, how will you ever be aware of how well your audience is being served and whether or not your client base is flourishing?

Why are customer service metrics important for measuring the growth of your new business? Let’s say, for instance, you happen to have fantastic sales and marketing initiatives that are having a positive impact on the enhancement of your customers’ shopping and user experiences. That is all great, but if you’re not measuring these upward elements, then how will you be able to know how successful you’ve been, and find the areas in which you need to improve? Also, how will you be able to convince investors, clients, or collaborators how well the business is doing?

The customer service metrics that you use are the building blocks for constructing a foundation for how well you are servicing your supporters. The happier your customers are, the more return business and positive references you can expect to receive for your brand.

Customers can be asked performance questions such as:

  • How easily do we make it for customers to communicate with us?
  • How efficient is the sales process for you within our organization?
  • How well are we reaching our goal of providing you with first-class service?
  • How well do our brand and our services/products resonate with you?

Social Media Monitoring

Customers have no problem with voicing their rave reviews or their utter disgust with a brand on social media these days. The fact that it seems as though very few companies are willing to respond back to critiques can be frustrating to customers, especially if they use social media as a last resort to get a company’s attention about poor service.

Tracking social media experience metric data makes it possible for you to be aware of when a customer should be responded to and also have a much better idea of what your audience really thinks about your organization to be able to learn from past mistakes.

Performance indicators that you can measure include how many brand mentions you have received over time, account and technical questions, negative feedback, and how many questions could be answered through other support material that should be made available.

Measure these performance indicators by analyzing them month-to-month to observe what sorts of variations are taking place. Invest in a social media strategy to view and collect data from each social media platform that your company utilizes to monitor the way that your company is being spoken about.

First Response Time

When a customer reaches out to a business with a concern, they want to feel like their time isn’t being wasted. To avoid them feeling like this, you should be replying to your customers quickly.

Measuring first response time can become an operational metric to ensure customer queries are being addressed in an appropriate manner and not lying around unattended. Automated replies can show that feedback has been logged, but don’t think for a minute that this robotic transaction will be enough to satisfy a customer. Make sure that their question has actually been addressed, whether through email, an online form, by phone, through social media channels, or through live chat.

Calculate first response time data by taking the time of the first response and subtracting the amount of time since the customer requested help. Keep trying to improve upon your current results.

Remember, leaving a response to a customer that is too late is a risk that can backfire badly. You should also decide upon a framework that employees can use to take action on negative replies quickly in the right way.

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by Lottie Pritchard // Lottie Pritchard is a contributor to Businessing Magazine.

Opinions expressed by contributors are their own.