Are you tracking the right key performance indicators (KPIs)? Some janitorial companies pay little or no attention to KPIs. Instead, they focus their time and attention strictly on generating sales leads and sales. While sales volume itself is a KPI, there are several other KPIs that can help you create a more effective, as well as successful, janitorial company. So, what KPIs should you track for B2B sales and marketing exactly?
#1) Average Cost Per Lead
As the name suggests, average cost per lead is a KPI that reveals how much money your janitorial company spends to acquire sales leads. The cost of a sales lead can vary depending on countless factors. With that said, it's not uncommon for janitorial companies to have an average cost per lead of $5 to $50. The only way you'll know how much money your janitorial company spends on leads is to track average cost per lead.
#2) Cost of Customer Acquisition
Not to be confused with cost per sales lead, cost of customer acquisition reflects how much your janitorial company spends to acquire customers. Sales leads, of course, are only valuable if you're able to convert them into customers. By tracking the cost of customer acquisition, you'll know how much money your janitorial company spends, on average, to acquire new customers.
#3) Customer Retention Rate
While speaking of cost of customer acquisition, statistics show that it costs five to 25 times more money to acquire a new customer than it does to retain an existing customer. Therefore, it's a good idea to track your janitorial company's customer retention rate. This KPI shows the percentage of customers who stay with your company during a given period. If 800 out of 1,000 customers stayed with your janitorial company last year, your B2B company's customer retention rate for that year would be 80%.
#4) Customer Lifetime Value
How much money does a typical customer spend over the course of his or her professional relationship with your janitorial company? Known as customer lifetime value, it's an important KPI for B2B companies. Most janitorial customers are searching for an ongoing service, however, special events may require your janitorial company to supply additional staff and hours of operation. Be sure to track accordingly, as the customer lifetime value is the average amount of money a customer spends with your janitorial company.
#5) Conversion Rate
Arguably, one of the most important B2B marketing and sales KPIs is conversion rate. Of course, conversion rate is the percentage of sales leads or prospects whom you are able to convert into customers. You can track this KPI per marketing or sales channels. If you send 500 emails that result in 50 new sales, the conversion rate of your email campaign is 10%. On the other hand, if you call 500 leads, which generates 100 new sales, the conversion rate of your calling campaign is 20%. Conversion rate reflects the effectiveness of a marketing or sales campaign. As a result, it's an important KPI for janitorial companies to track.
#6) Average Order Value
Another important KPI to track is average order value. Average order value is the average amount of money customers spend when making a purchase. Some customers will purchase more products or services than other customers. Furthermore, a customer may purchase your ongoing service or they may purchase multiple units of a particular cleaning product to stock in their kitchen for everyday use. You'll have a better understanding of how much money customers spend when placing orders by tracking your janitorial company's average order value.
#7) Social Media Engagement
Considering that over three-fourths of the U.S. population has a Facebook profile, you should track social media engagement. Social media engagement can include any form of "action" taking by a user. On Facebook, this may include likes, comments and shares. On Twitter, this may include likes, comments and retweets (which are essentially shares). Ideally, your janitorial company's social media engagement should grow, which indicates that more people are talking about it on social media networks.
#8) Cold Calling Response Rate
Assuming you use cold calling in your janitorial company's outreach strategy, you should track your cold calling response rate. This KPI reflects the percentage of contacts whom you are able to reach with cold calling. If you cold call 100 sales leads and prospects but only reach 10 of them on the line, your cold calling response rate is 10%. Like all other KPIs listed here, you should strive to increase your janitorial company's cold calling response rate. If it's too low, you won't generate positive results from the amount of time and resources that you invest into cold calling.
#9) Website Traffic
If your janitorial company has a website -- which it should -- tracking its traffic can help give you a better understanding of the effectiveness of your marketing and sales efforts. When website traffic increases, it suggests more people are finding it through common channels like search engines, browser type-ins, referrals, etc. On the other hand, a reduction in website traffic suggests fewer people are finding it through these channels.
Now that you have the tools to track it, let's get you started on some identified sales leads. SalesLeads Inc., researchers track opportunities going on across the country and then some. Once the opportunities turn into projects, we let you know about it right away so you can begin the sales process.
Project Reports include key information so you can make informed sales calls. Meaning, we include a project summary along with decision maker contact information, project size, location and the timeframe. It's all the information you need in order to make a great sales call.