Your brand strategy should drive revenue.
Not vanity metrics. Not awareness. Not partner invitations. Not more mentions in random LinkedIn posts.
Revenue.
It's the only metric that actually matters for your business.
Most brand strategies are nothing more than fluff.
Purpose, mission, vision, values, personality — all to help some graphic designer pump out a new look for your business.
I hate to break it to you, but none of that will make you more money.
So, how do you test if your strategy is driving revenue?
Here are 7 metrics to watch:
Client Retention & Expansion
An increase in clients who stay and buy additional services is a sign that you have a strong differentiator and clear story.
Start tracking your client retention rate and expansion rate:
- Retention = (Clients Retained / Starting Clients) x 100
- Expansion = (Clients that spent more / total clients) x 100
Here's how to grab those numbers:
- Pull a list of all active clients from the start of the year
- Compare it to your current list of active clients
- Note who renewed, who expanded, and who left
Customer Lifetime Value
Growth in the lifetime value of a client signals that your brand strategy is maturing and attracting better buyers.
Start tracking your Customer Lifetime Value:
- CLTV = Average revenue per client x average relationship length
Here's how to grab those numbers:
- For each client, grab the sum total revenue over their entire relationship
- Divide by the number of clients to get an average
Conversion Rates
When brand clarity is strong, you usually see higher marketing and sales conversion rates and a higher quality of lead coming in.
Start tracking these conversion rates:
- Visitor to Lead = (total leads / total visitors) x 100
- Lead to Qualified Lead = (qualified leads / total leads) x 100
- Qualified Lead to Proposal = (proposals sent / qualified leads) x 100
- Proposal to Closed Deal = (closed deal / proposals sent) x 100
Average Deal Size
When you hold a unique position in the market, deal size climbs because buyers understand your differentiation faster.
Start tracking your average deal size:
- Average Deal Size = total revenue / number of closed deals
Sales Cycle Length
A shorter sales cycle shows that prospects understand why you are the right fit faster. It's an indication that your messaging is on point.
Start tracking your sales cycle:
- Sales Cycle = close date - first qualified conversation date
Lead Quality Score
Higher quality leads show that your message attracts the right audience and repels the wrong.
Start tracking your lead quality score:
- Lead Quality Score = sum of all lead scores / number of leads
Here's how to track it:
- Create a simple scoring system inside your CRM
- Score every inquiry that comes in
- Track the average lead score over time
Pricing Effectiveness
When prospects accept your pricing more easily, it signals that your unique value and narrative is clear.
Start tracking these 3 metrics:
- Win Rate = (deals won / deals proposed) x 100
- Price Objection Rate = (deals lost due to price / total deals lost) x 100
- Higher Tier Offers Rate = (higher tier purchases / total purchases) x 100
Track Your Brand's Revenue
Your brand strategy should drive new revenue.
It's not always easy to tie positioning changes to revenue, but if you track the metrics above, you will see the impact your strategy is making.
These metrics should go UP:
- Retention Rate
- Expansion Rate
- Customer Lifetime Value
- Conversion Rates
- Average Deal Size
- Lead Quality Score
And your sales cycle length should go DOWN.
When those metrics move in the right directions, it's a sign your brand strategy is working.
Start tracking those metrics today.
You'll gain a deeper understand about how to adjust your position.
Until next week,
#SassyJason out.
✌🏼
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