Ever feel like you’re running your agency on gut feeling instead of cold, hard data? You’re not alone! This breakdown reveals the 15 key numbers you need to track to make smarter decisions and skyrocket your agency’s growth.
Let’s dive in and unlock the power of data-driven decisions!
💰 Client Acquisition & Profitability
1. CAC (Customer Acquisition Cost) 🕵️♀️
What it is: The cost of acquiring one new client.
How to calculate: (Total Marketing & Sales Expenses) / (Number of New Clients)
Example: You spend $5,000 on ads and pay your sales team $10,000 in salaries. You acquire 10 new clients. Your CAC is ($5,000 + $10,000) / 10 = $1,500.
💡 Pro Tip: Aim to lower your CAC over time by optimizing your marketing and sales processes.
2. Churn Rate 💧
What it is: The percentage of clients who leave your agency during a specific period.
How to calculate: (Number of Clients Lost) / (Number of Clients at Start) x 100
Example: You started with 100 clients and lost 10. Your churn rate is (10 / 100) x 100 = 10%.
💡 Pro Tip: Identify why clients leave and implement strategies to improve retention.
3. Lifetime Gross Profit 💰
What it is: The total profit you earn from a client over their entire relationship with your agency.
How to calculate: (1 / Churn Rate) x (Average Monthly Gross Profit per Client)
Example: Your churn rate is 5% (0.05), and your average monthly gross profit per client is $1,000. Your lifetime gross profit is (1 / 0.05) x $1,000 = $20,000.
💡 Pro Tip: Focus on increasing client lifetime value by providing exceptional service and upselling/cross-selling.
🚀 Growth & Performance Metrics
4. Revenue Growth Rate 📈
What it is: The rate at which your revenue is increasing.
How to calculate: [(Current Period Revenue – Previous Period Revenue) / Previous Period Revenue] x 100
Example: Your revenue last quarter was $100,000, and this quarter it’s $120,000. Your revenue growth rate is [($120,000 – $100,000) / $100,000] x 100 = 20%.
💡 Pro Tip: Set ambitious but realistic revenue growth goals and track your progress regularly.
5. Referral Rate 🗣️
What it is: The percentage of clients who refer new business to you.
How to calculate: (Number of Referrals) / (Total Number of Clients) x 100
Example: You received 10 referrals from your 50 clients. Your referral rate is (10 / 50) x 100 = 20%.
💡 Pro Tip: Implement a referral program to incentivize clients to spread the word.
🧲 Sales & Conversion Optimization
6. Lead Conversion Rate (LCR) 🧲
What it is: The percentage of leads that convert into paying clients.
How to calculate: (Number of Clients) / (Number of Leads) x 100
Example: You generated 100 leads and converted 10 into clients. Your LCR is (10 / 100) x 100 = 10%.
💡 Pro Tip: Optimize your sales funnel and lead nurturing process to improve your LCR.
7. Show Up Rate 📅
What it is: The percentage of leads who show up for scheduled sales appointments.
How to calculate: (Number of Show Ups) / (Number of Appointments) x 100
Example: You had 50 scheduled appointments, and 40 leads showed up. Your show-up rate is (40 / 50) x 100 = 80%.
💡 Pro Tip: Implement appointment reminders and follow-up procedures to reduce no-shows.
8. Qualified Rate ✅
What it is: The percentage of leads who meet your ideal client criteria.
How to calculate: (Number of Qualified Leads) / (Number of Show Ups) x 100
Example: Out of 40 leads who showed up, 30 were qualified. Your qualified rate is (30 / 40) x 100 = 75%.
💡 Pro Tip: Refine your lead qualification process to attract more ideal clients.
9. Qualified Close Rate 🤝
What it is: The percentage of qualified leads that convert into clients.
How to calculate: (Number of Closes) / (Number of Qualified Leads) x 100
Example: You closed 15 deals out of 30 qualified leads. Your qualified close rate is (15 / 30) x 100 = 50%.
💡 Pro Tip: Improve your sales skills and tailor your pitches to resonate with qualified leads.
10. Sales Cycle Length ⏳
What it is: The average time it takes to convert a lead into a client.
How to calculate: (Total Days to Close All Deals) / (Number of Clients)
Example: You closed 4 deals. Deal 1 took 10 days, Deal 2 took 15 days, Deal 3 took 20 days, and Deal 4 took 25 days. Your average sales cycle length is (10 + 15 + 20 + 25) / 4 = 17.5 days.
💡 Pro Tip: Identify bottlenecks in your sales process and streamline them to shorten your sales cycle.
🤝 Client Satisfaction & Retention
11. Average Response Time ⏱️
What it is: The average time it takes for your team to respond to client inquiries.
How to calculate: (Total Response Time for All Inquiries) / (Number of Inquiries)
Example: You responded to 10 inquiries. The total response time for all inquiries was 100 minutes. Your average response time is 100 minutes / 10 inquiries = 10 minutes per inquiry.
💡 Pro Tip: Set clear response time expectations and use tools to automate and expedite responses.
12. Average Time to Value ⏳
What it is: The average time it takes for clients to see tangible results from your services.
How to calculate: (Total Time to Value for All Clients) / (Number of Clients)
Example: You onboarded 4 clients. Client 1 saw results in 1 week, Client 2 in 2 weeks, Client 3 in 3 weeks, and Client 4 in 4 weeks. Your average time to value is (1 + 2 + 3 + 4) / 4 = 2.5 weeks.
💡 Pro Tip: Focus on delivering quick wins early in the client relationship to demonstrate value and build trust.
🛡️ Financial Health & Risk Management
13. Lost Cash to New Cash Ratio 💸
What it is: The ratio of money lost due to refunds, chargebacks, and disputes to new revenue generated.
How to calculate: (Total Negative Revenue) / (Total New Revenue)
Example: You lost $5,000 to refunds and generated $50,000 in new revenue. Your lost cash to new cash ratio is $5,000 / $50,000 = 0.1 or 10%.
💡 Pro Tip: Aim to keep this ratio as low as possible by addressing client concerns proactively and minimizing disputes.
14. Health Score ❤️
What it is: A composite score that reflects the overall health and satisfaction of each client.
How to calculate: This requires a more complex system based on your specific KPIs and client data.
💡 Pro Tip: Implement a system to track client health scores and identify at-risk clients early on.
15. Completion Rate 💯
What it is: The percentage of clients who successfully complete your program or service package.
How to calculate: (Number of Clients Who Completed Program) / (Number of Clients Who Started Program) x 100
Example: 90 out of 100 clients completed your program. Your completion rate is (90 / 100) x 100 = 90%.
💡 Pro Tip: Analyze why clients don’t complete your program and make adjustments to improve the experience.
🧰 Resources to Level Up Your Agency
Here are some tools to help you track these numbers and streamline your agency operations:
- Make.com: Powerful automation platform to connect your favorite apps and automate tasks.
- Skool: Build a thriving online community for your agency and engage with your audience.
- Noloco: No-code app builder to create custom tools and dashboards for your agency.
- Pandadoc: Streamline your contract creation and management process.
- Notion: All-in-one workspace for documentation, project management, and more.
By tracking these 15 numbers, you’ll gain invaluable insights into your agency’s performance, identify areas for improvement, and make data-driven decisions that fuel sustainable growth.
