To maximize organic growth, businesses must acquire new customers and get existing customers to stay with them and buy more products and services. Sounds simple, doesn’t it?
If it were, though, we wouldn’t hear so much about businesses declaring bankruptcy or planning layoffs. When determining a company’s potential for organic growth and long-term sustainability, I try to look at these five metrics:
- Percent of customers highly likely to refer
- Percent of customers highly likely to repurchase the same products or services
- Percent of customers highly likely to purchase other products or services
- Ratio of new sales to repeat sales
- Percent of sales from referred prospects
Note that I said, “Try to look at these five metrics.” Very few businesses I have seen actually track all of them. Does yours?