Business Relationships Are About People And Economics Stupid

Business relationships aren't quid pro quo because sometimes you have to give a lot before you get anything. For success, you need to know how much you can give.

That means you, the sales and marketing manager, must be clear about your numbers. What numbers am I talking about? Starting with overall profit and loss, you also need to know:

• Cost Per Action (CPA),
• Cost Per Lead (CPL),
• Cost Per Sale (CPS),
• Profit Per Sale (PPS),
• Customer Lifetime Value (CLV),
• Average Transaction Value (ATV),
• Average Bounce Rate (ABR),

These numbers are navigational tools that keep you on the right track. You wouldn't go on a cross country trip without a map, would you? And once you got started, wouldn't you reference that map periodically to make sure you stay on track?

They are to be considered in addition to the key performance areas successful managers consider before getting started on any project. Together both measures provide to you the economics of your selling efforts.

That's what these numbers are all about. They keep your profitable across your selling and marketing efforts while moving you closer to business objectives. Key measurements of buying behavior. What are you measuring?