Over the past two weeks while listening to a podcast and watching a few industry videos, the idea of Smart Questions came up. The common idea is, if you want better answers, then ask better questions. Here are 5 questions, to ask in your business to get better answers that will lead to better decisions.
Question #1 – What should we stop doing?
Businesses take on the nature of humans, in that we follow patterns and routines. Looking closely at you sales process, marketing plan, meeting structures, billing and more can show you patterns you weren’t even aware existed. Then you can deconstruct the pattern to see if there is a way to do it differently to improve your results.
Question #2 – What commonalities do my customers have, and what can we innovate to better serve them?
Chances are, your customers have many commonalities. Are there any common pain points that your business may be able to develop a solution for? Looking at the demographics, and geography of your customer as well as common interests and questions may uncover opportunity for you to better serve.
Question #3 – What is the lifetime value of my average customer and what’s the average life cycle?
Okay, I know that is 2 questions in one, but it’s important to know both. Figuring out the average lifetime value of your customer ($500X24 months = $12,000) gives you the ability to look at the profit of each customer. You can then make sure you are getting a positive ROI on the dollars spent to acquire the customer ex. Avg customer ($12,000 x .5 Margin) – $2,500 Acquisition = $3,500 profit per customer.
Question #4 – What makes our product/service unique from our competitors, and are we communicating this effectively through our advertising?
Take the time to write down your competitive advantages, and unique value. When doing this it helps define clearly the messaging you want conveyed in your marketing and advertising.
Question #5 – If you could add one new position at your company, what would it be an what problems would it solve for you?
I’ve seen in my own business that one right person can take your business to a new level. Where are the bottlenecks and inefficiencies in your business? Could a new position be created to solve this problem. Would the new position pay for itself by fixing an efficiency or adding new sales?
I’m sure you have some great questions you are already asking. Hopefully this list of questions got you thinking about how to improve your business.
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