3 THINGS YOU MUST DO BEFORE APPLYING FOR BUSINESS FINANCE Funding and Business Growth Playbook T: 0330 350 3356 @: hello@GrowingYourNumbers.com www: growingyournumbers.com
How did Alex ’s Software Company far e in their efforts to acquire new customers last year? How did your business do?
This information is not always immediately available from your accounting records.
Alex tracks their performance using a Management Pack each month, so Alex knows exactly how many new customers the company acquired this year vs last.
New Customer Acquisition This Year vs Last Year
Unfortunately for Alex, New Customer Acquisition is not improving. This Business Growth Driver has reduced from 98 New Customers Acquired last year to just 79 this year, which means Alex ’s Software Company has acquired 19 fewer customers year on year, nearly a 20% reduction year on year. It helps to consider not just the number, but the potential impact. If New Customer Acquisition had remained the same in each of the last two years, Alex would have had an addition 19 customers. What would those 19 customers have purchased? We will never know for sure, but if we take the average purchase frequency and the average purchase value, in the case of Alex ’s Software Company, we can calculate the potential lost sales. Alex doesn’t need to do this because this is part of the Management Information in the monthly report Alex uses to manage the business.
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