Since today marks the beginning of a new month, I want to involve you in the most important task I do in the business every first day of the month.
I've mentioned the topic of KPI (Key Performance Indicators) in previous posts – these are the critical metrics in the business meant to guide us and keep us focused.
In our Amazon business, there are many different metrics, all of which are important and require attention. However, to be highly effective, it's desirable to focus on just three key metrics that capture the essence of the business and drive the primary growth from month to month.
My three monthly KPI metrics are:
Quantity of items sold
Monthly sales turnover
Ad spend as a percentage of turnover
These are three measurable data points that can be checked at any given time to gauge performance against targets.
At the beginning of each month, I set these targets, which should be derived from the annual plan I've built with fine-tuning according to market changes in the previous month. I record these targets on a whiteboard and update all my virtual assistants (VAs) so that everyone understands where we are headed.
Then, every Sunday, I have a recurring reminder to check the progress towards these targets, which means checking the monthly partial KPI metric for the X number of days that have passed and whether I am on track to meet the targets.
If there is any deviation in one of the metrics, I record a set of actions to correct the deviation and get back on track by the end of the next week.
This is how we create real and controlled growth over time.
Have a great month ahead and a joyful, well-deserved break!