🧾✏️ Así Optimizo Mi Negocio Millonario (KPIs)

Understanding KPIs for Business Growth

Introduction to KPIs

• The video discusses the importance of understanding business metrics, specifically Key Performance Indicators (KPIs), and how to optimize them to increase profitability.

• Marcos Rasetti, founder of Bluehackers, shares his experience in helping over 140 coaches and agencies boost their monthly revenue significantly.

Importance of KPIs

• The session outlines various types of KPIs: marketing, sales, service, and operations, emphasizing their role in business growth.

• This video is part of a free 12-module course aimed at teaching viewers how to scale their coaching or agency businesses effectively.

Defining KPIs

• A KPI is defined as a measurable value that demonstrates how effectively a company is achieving key business objectives.

• Examples of important metrics include investment costs, lead generation numbers, sales figures, conversion rates, and customer acquisition costs (CAC).

Analyzing Business Health through Numbers

• Many entrepreneurs avoid looking at their metrics due to discomfort with the reality they reveal about their business performance.

• Regularly reviewing these numbers—daily, weekly, and monthly—is crucial for making informed decisions and adjustments.

The Role of Metrics in Decision Making

• KPIs serve as indicators that help understand progress towards goals; successful entrepreneurs make data-driven decisions based on these insights.

• Ignoring metrics can lead to aimless efforts without direction; understanding your numbers clarifies necessary actions for improvement.

Optimizing Your Business Metrics

Learning from Failures

• Entrepreneurs often cycle through attempts and failures; however, the focus should be on learning from failures rather than being discouraged by them.

Practical Example: Cost Per Prospect

• An example illustrates calculating cost per prospect: acquiring 100 prospects for $1,000 results in a $10 cost per prospect.

• If closing rates improve (e.g., closing 10% leads to 10 sales), it highlights the importance of optimizing both attraction strategies and conversion rates.

Enhancing Attraction Strategies

Marketing Metrics and Optimization Strategies

Understanding Customer Acquisition Costs

• The speaker discusses a conversion rate leading to 24 customers, resulting in a customer acquisition cost of $40, which is reduced by 60%.

• Each of the 24 customers invests $150, generating total revenue of $3,600 with a profit of $2,640.

• A 25% increase in average purchase value contributes an additional profit of $1,320.

• About 20% of customers make additional purchases without extra costs, yielding an extra benefit of $600.

Importance of Optimizing Marketing Numbers

• The speaker emphasizes that optimizing small metrics can lead to exponential growth similar to compound interest.

• Many people underestimate the importance of numbers in marketing; understanding these metrics is crucial for success.

Key Marketing Metrics

Investment and Advertising Costs

• Investment refers to the money spent on acquiring customers through advertising; it should be differentiated from general expenses.

• Advertising spend is synonymous with investment and can be optimized beyond just increasing expenditure.

Impressions and Reach

• Impressions indicate how many times content appears in users' feeds without requiring interaction; multiple impressions can occur for the same content.

• Reach measures how many unique individuals see the content; both metrics are derived from advertising platforms.

Cost Per Mille (CPM)

• CPM indicates the cost incurred for obtaining 1,000 impressions; this metric varies based on campaign objectives and audience targeting strategies.

Frequency and Click Metrics

• Frequency represents how often an individual sees an ad; optimizing this involves testing new ads to avoid ad fatigue.

• Click metrics track how many users click on ads; improving ad copy and targeting enhances click rates.

Cost Per Click (CPC)

• CPC reflects the amount spent per click on ads. Higher earnings per click may justify higher costs if they attract qualified leads.

Enhancing Engagement Through Targeting

Click Through Rate (CTR)

• CTR measures clicks relative to impressions. It's essential to focus on attracting ideal customers rather than just maximizing clicks.

Views or Visits

Funnel Optimization Strategies

Understanding Funnel Metrics

• The funnel can be tracked using Google Analytics, which helps in optimizing traffic sources, both organic and paid.

• Leads are generated through the platform used for creating landing pages and CRMs; optimization involves increasing conversion rates through testing and enhancing traffic sources.

• Cost per Lead (CPL) is calculated by dividing advertising spend by the number of leads acquired; it should remain lower than the earnings per lead to avoid concerns.

Conversion Rates and Landing Pages

• The Landing Conversion Rate measures how many visitors register on a landing page, calculated as leads over views; optimization includes refining messaging and targeting interested audiences.

• Enhancements to landing pages involve improving layout, adding testimonials, ensuring strong offers, and aligning ads with landing page content for better conversion.

Booking Metrics

• The percentage of leads that schedule appointments after registration is crucial; this metric can be optimized by improving follow-up strategies and making scheduling more intuitive.

• Bookings refer to the total number of scheduled appointments; optimizing involves enhancing retargeting ads and reducing barriers in the booking process.

Cost Analysis

• Cost per Call or Booking is determined by dividing ad spend by the number of scheduled calls; optimization focuses on improving overall booking percentages.

• Quality bookings refer to qualified leads who show genuine interest; these are identified through responses during sales calls or forms.

Final Metrics: Sales Conversion

• The Funnel Conversion Rate indicates what percentage of leads convert into sales; this can be improved by focusing on lead quality and refining sales metrics.

KPI Insights and Sales Metrics

Understanding Key Performance Indicators (KPIs)

• The discussion begins with the concept of KPIs, focusing on profit cash from ads, which is calculated as cash received minus advertising expenses.

• Emphasizes that ad profit is derived from the total revenue collected after deducting advertising costs, highlighting its importance in evaluating marketing effectiveness.

Return on Investment (ROI) Metrics

• Introduces the Return on Ad Spend (ROAS), defined as revenue divided by advertising investment, stressing its role in optimizing traffic sources and sales metrics.

• Discusses sales KPIs such as attendance rates for calls, known as "show ups," which are crucial for measuring engagement and potential conversion.

Optimizing Attendance and Conversion Rates

• Explains how to improve attendance rates through effective pre-call content and reminders to ensure prospects are engaged before their scheduled sessions.

• Highlights the importance of clear expectations set prior to scheduling calls to enhance attendance likelihood.

Sales Conversion Strategies

• Defines conversion rate as the percentage of individuals who make a purchase relative to those who were contacted, emphasizing strategies like empathy in communication and addressing objections effectively.

• Suggests utilizing social proof and attractive offers to boost credibility and increase sales conversions.

Analyzing Sales Pipeline Dynamics

• Discusses the time taken from session to sale, indicating that follow-up can reduce this duration significantly.

• Describes the sales pipeline's value estimation based on potential closures within specific time frames, factoring in prospect probabilities at various stages.

Financial Metrics Related to Bookings

• Introduces Earnings Per Booking (EPV), which measures income generated per sales call scheduled. This metric can be optimized through effective traffic management.

• Discusses the booking-to-sale ratio, indicating how many scheduled appointments convert into actual sales; improving this involves enhancing attendance rates and closing strategies.

Average Revenue Insights

Understanding Key Business Metrics

Product Payment and Cash Collection

• The concept of "producto pagado por adelantado" or average cash collected is explained, indicating that if a product costs 10,000, a metric of 7,500 represents 75%.

Customer Lifetime Value (LTV)

• LTV is defined as the historical revenue generated by a customer. It can be optimized by selling more products, increasing purchase frequency, raising prices, and ensuring long-term customer relationships.

Onboarding Process Metrics

• The onboarding time measures how many days it takes for a client to start using the program after payment. This metric helps streamline the onboarding process.

• Percentage of completion indicates how much of the program content has been consumed by clients. Enhancing engagement through dynamic lessons can improve this metric.

Task Completion Rates

• Task conversion rate reflects the percentage of assigned tasks completed by clients. Improving clarity in task assignments and maintaining daily follow-ups can enhance this rate.

• The success rate measures how well clients meet their initial promises when purchasing the program. Optimizing accountability and content quality are key strategies for improvement.

Refund Requests and Customer Satisfaction

• The refund request rate tracks how many customers ask for their money back. Reducing this rate involves delivering better service and managing expectations effectively.

• Net Promoter Score (NPS), which gauges customer willingness to recommend services, is crucial for business growth. Enhancing service quality can increase NPS scores significantly.

Referral Strategies

• Increasing referral rates involves boosting customer satisfaction and incentivizing both referrers and referred individuals with bonuses or proven resources.

Upselling Opportunities

Optimizing Business Metrics

Customer Retention and Service Improvement

• Discusses the importance of optimizing customer retention by offering various products, financing options, and guarantees to reduce churn rates.

• Emphasizes delivering better service by showcasing benefits for renewal, providing lower plans, soliciting feedback, and resolving issues.

Operational Metrics

• Introduces key operational metrics such as billing (revenue inflow) and cash flow, clarifying that they are distinct yet interconnected.

• Defines gross profit or real revenue as total sales minus the cost of goods sold; highlights optimization through reducing costs and increasing sales.

• Explains variable costs as those fluctuating monthly; suggests negotiation with suppliers to minimize unnecessary expenses.

Financial Health Indicators

• Describes net profit as income minus expenses; emphasizes optimization through increasing revenues while cutting costs.

• Introduces core capital as the amount available to cover months of expenses; explains its significance in financial planning.

• Discusses accounts receivable (AR), which represents money owed to the business; suggests strategies for improving collections.

Cash Flow Management

• Highlights accounts payable (AP), detailing upcoming payment obligations and strategies for managing them effectively.

• Introduces marketing-to-revenue ratio, illustrating how marketing expenditures relate to overall revenue generation.

Team Performance Metrics

• Discusses team performance metrics that can be both quantitative (KPIs) and qualitative assessments based on values fulfillment.

• Stresses the importance of employee satisfaction in optimizing performance; mentions regular evaluations on a scale from 1 to 10.

Employee Retention Strategies

• Suggests enhancing employee well-being through clear task definitions, effective delegation, and prioritization of responsibilities.

Labor Efficiency Ratio and Project Management Insights

Understanding Labor Efficiency Ratio

• The Labor Efficiency Ratio (LER) is defined as the relationship between billing and personnel costs, providing a measure of team performance.

• To improve LER, one can either increase billing or reduce total personnel costs, which includes payments to the team.

Metrics for Task Management

• Delayed metrics are derived from project management tools like ClickUp, focusing on the percentage of tasks completed on time.

• The completion rate can be calculated using terms such as "task to date" or "task with time," divided by budgeted hours versus actual hours worked.

Productivity Optimization Strategies

• Optimizing task assignments involves setting more realistic timelines to enhance productivity and improve task tracking.

Course Reflection and Engagement

• The speaker reflects on their energy levels during the recording, expressing hope that the content was beneficial despite feeling fatigued.

• A call to action encourages viewers to request detailed notes via Instagram for further clarification on discussed topics.

Final Thoughts and Encouragement

• The speaker emphasizes their dedication in compiling course materials and invites viewers to explore paid programs for deeper engagement.