5 Metrics Every Business Owner Should have at Their Fingertips

It’s possible to spend all of your time pouring over your web site analytical data. However, if you’re not looking at the right metrics - data that shows critical information about your current marketing plan performance - you’ll be hard-pressed to find data that can actually inform your marketing decisions. Here’s why metrics are so important and which metrics you should be tracking.

Why Metrics Matter

As a business owner, you’re busy. Whether it’s managing personnel, signing off on a new marketing plan, or reviewing last quarter’s sales, there’s always something clamoring for your time.

Metrics are essentially a way for decision making to be easier. At a glance, you can see how much traffic your website is getting, whether your pages are performing as intended, and see ways you can improve your sales. This helps to inform which marketing strategy you should focus on or let you know how you can improve current efforts.

Which Metrics Should I Track?

There are countless different metrics you could track, but not all of them will provide the information your business needs to thrive. If you’re in a hurry and don’t have time to spend hours poring over reports, make sure to keep track of the following metrics.

1. Traffic. The amount of visitors that come to your site informs your interpretation of each of the other metrics on this list. Keeping track of your new and returning visitors, as well as how long people are spending on your site, will inform your decision on how to focus your marketing efforts.

2. Conversions. The actual definition of a conversion will depend on what your business goals are for your website. Is your goal to build your email list? Then a conversion will be whenever someone signs up for your list. Is your conversion dependent on sales? Then a conversion is any time you make a sale.

3. Sales/Revenue. Traffic is good, but if it’s not making you any money, it’s not performing like it should. Your sales/revenue metric let’s you know if this is the case.

4. Average Customer Value. This metric determines the average value of your customers. This shows you how much money your customers make your company, on average. It can also show you the top performing customers (the ones that are the most valuable to your company).

5. Best Performing Pages. By knowing which pages on your site are performing best, you’ll know where to funnel your customers and upon which marketing efforts to focus future plans.

If you work in the marketing department of a large corporation, you probably have an entire team dedicated to tracking these metrics and delivering reports.

But what if you have a small business and don’t have the resources of a team designated to keep track of metrics? Don’t worry - there are options you can afford, too.

Metrics Dashboards Options

There are many different services available which offer metrics dashboards, easy-to-read collections of your most important metrics. Take Domo’s Business Information dashboards, for instance. As they describe it, “Domo is a cloud-based executive management platform that gives users direct, real-time access to all the business information they care about, all in one place.” At a glance, you can see some of the most important metrics for your business,and you can have them delivered right to your smartphone or tablet.

No matter which solution you choose to monitor your data, make sure you’re keeping track of the 5 metrics listed above. Even spending just a few minutes per day knowing how those metrics are performing could dramatically increase your business success in 2014.

Snapchat Hacked: Names and Phone Numbers of 4.6 Million Users Posted

Users of the rapidly growing photo sharing social app called Snapchat got some potentially bad news â€" and now the company has responded.

It’s estimated the names and phone numbers of about 4.6 million Snapchat members were published online by anonymous hackers at a site that’s since been taken down (although some information is still available via leaked databases).

If you are a Snapchat user and aren’t sure whether you’ve been affected, visit this site first. It was set up by a security group very close to the Snapchat problem.  Only users within certain area codes in the United States were affected by the breach, according to the site.

You may remember Snapchat as the social startup that recently turned down a cool $3 billion from Facebook, which wanted to acquire the company.   You may also remember that Snapchat specializes in a type of photo sharing in which temporary photos and brief messages are shared on the network for up to 10 seconds and then deleted. (The site actually notifies the sender if another user has made a copy of the message.) Also important is that messages are shared only with the connections you specifically designate - not to the entire world.

So with such an emphasis on allowing users to control with whom they are sharing messages, you would think that user privacy should have been a top priority.

However, it turns out that Snapchat was apparently warned twice about a vulnerability in its system and did not do enough to address the vulnerabilities.

In fact, Snapchat was reportedly contacted as early as August by an Australia-based company called Gibson Security, The Daily Caller reports. Gibson set up the site mentioned above for members to determine whether or not their accounts have been breached.

Then, last week Snapchat acknowledged the security group had posted a private communication detailing a specific method hackers could use to obtain private user information, but downplayed the problem.  On its official blog, Snapchat explained:

Theoretically, if someone were able to upload a huge set of phone numbers, like every number in an area code, or every possible number in the U.S., they could create a database of the results and match usernames to phone numbers that way. Over the past year we’ve implemented various safeguards to make it more difficult to do. We recently added additional counter-measures and continue to make improvements to combat spam and abuse.

Yet, hackers apparently used a variation of the exact tactic spelled out by Gibson to successfully obtain user information from the site.   Hackers who claimed responsibility for yesterday’s breach insisted they were trying to expose Snapchat’s security issues for everyone’s good.  They told the Verge:

“Our motivation behind the release was to raise the public awareness around the issue, and also put public pressure on Snapchat to get this exploit fixed. Security matters as much as user experience does.”

Snapchat today responded by emphasizing that the information released was limited to redacted phone numbers and usernames, not “snaps” (i.e., pictures shared).  It also said that the vulnerability is related to the optional “Find Friends” feature and noted:

“We will be releasing an updated version of the Snapchat application that will allow Snapchatters to opt out of appearing in Find Friends after they have verified their phone number. We’re also improving rate limiting and other restrictions to address future attempts to abuse our service.”

Image via SnapChat

5 Metrics Every Business Owner Should have at Their Fingertips

It’s possible to spend all of your time pouring over your web site analytical data. However, if you’re not looking at the right metrics - data that shows critical information about your current marketing plan performance - you’ll be hard-pressed to find data that can actually inform your marketing decisions. Here’s why metrics are so important and which metrics you should be tracking.

Why Metrics Matter

As a business owner, you’re busy. Whether it’s managing personnel, signing off on a new marketing plan, or reviewing last quarter’s sales, there’s always something clamoring for your time.

Metrics are essentially a way for decision making to be easier. At a glance, you can see how much traffic your website is getting, whether your pages are performing as intended, and see ways you can improve your sales. This helps to inform which marketing strategy you should focus on or let you know how you can improve current efforts.

Which Metrics Should I Track?

There are countless different metrics you could track, but not all of them will provide the information your business needs to thrive. If you’re in a hurry and don’t have time to spend hours poring over reports, make sure to keep track of the following metrics.

1. Traffic. The amount of visitors that come to your site informs your interpretation of each of the other metrics on this list. Keeping track of your new and returning visitors, as well as how long people are spending on your site, will inform your decision on how to focus your marketing efforts.

2. Conversions. The actual definition of a conversion will depend on what your business goals are for your website. Is your goal to build your email list? Then a conversion will be whenever someone signs up for your list. Is your conversion dependent on sales? Then a conversion is any time you make a sale.

3. Sales/Revenue. Traffic is good, but if it’s not making you any money, it’s not performing like it should. Your sales/revenue metric let’s you know if this is the case.

4. Average Customer Value. This metric determines the average value of your customers. This shows you how much money your customers make your company, on average. It can also show you the top performing customers (the ones that are the most valuable to your company).

5. Best Performing Pages. By knowing which pages on your site are performing best, you’ll know where to funnel your customers and upon which marketing efforts to focus future plans.

If you work in the marketing department of a large corporation, you probably have an entire team dedicated to tracking these metrics and delivering reports.

But what if you have a small business and don’t have the resources of a team designated to keep track of metrics? Don’t worry - there are options you can afford, too.

Metrics Dashboards Options

There are many different services available which offer metrics dashboards, easy-to-read collections of your most important metrics. Take Domo’s Business Information dashboards, for instance. As they describe it, “Domo is a cloud-based executive management platform that gives users direct, real-time access to all the business information they care about, all in one place.” At a glance, you can see some of the most important metrics for your business,and you can have them delivered right to your smartphone or tablet.

No matter which solution you choose to monitor your data, make sure you’re keeping track of the 5 metrics listed above. Even spending just a few minutes per day knowing how those metrics are performing could dramatically increase your business success in 2014.

Goodbye AllThingsD; Welcome ReCode.Net

AllThingsD has been on our list of “must read” sites for a long time.  With a new year, AllthingsD is no longer.  Tech guru Walt Mossberg and journalist Kara Swisher have a new gig now, in 2014, called ReCode.net.

The new site logo is a bit confusing in that it is “Re/code” - and if you go to recode.com (as most might assume) you will end up somewhere else.  It’s easier to think of it as Recode.net so that you end up at the right site.

AllthingsD was once part of the Wall Street Journal network online.  You could be sure to find the latest technology news there, especially news affecting large publicly-traded companies.

Today, however, if you go to AllThingsD.com, you’ll be redirected to the Technology section of the Wall Street Journal.

The change is not unexpected.  Mossberg and Swisher announced back in September that they would be leaving the Wall Street Journal at the end of 2013.

Their new site is owned by Swisher and Mossberg’s holding company Revere Digital LLC.  According to a report on CNBC, “The new enterprise is being launched with minority investments from the NBC Universal News Group and Windsor Media, an investment firm run by Terry Semel, the former chief of Yahoo and Warner Brothers.”   ReCode.net also has a separate content partnership with NBCUniversal News Group for tech coverage â€" apparently the goal there is to get more video coverage.

So what happens to the big AllThingsD tech conference every year that featured such big names as Bill Gates?  It will still go on, but will be called the ’Code’ conference.

As Mossberg explains in the video interview below, previously AllThingsD was a product of Dow Jones (owner of the Wall Street Journal). Now, their site will be independently owned by them.  They are still going to cover breaking news and give fair analysis of technology news, adds Swisher, who is Co-CEO of the new company along with Mossberg.

Starting a Business in 2014? Here Is Your Startup Checklist

Each year, the number of new businesses spikes in January as the start of a new year seems like the most natural time to begin a new venture. Whether you’re just starting out or are a seasoned entrepreneur, run through this startup checklist to better understand the steps needed to make your business legit.

1. Make Sure Your Business Name is Legal

You dreamed up the perfect name for your new company, but is it legally available for you to use? Before you get too far with your branding and order your signage, you’ve got to make sure that your business name isn’t conflicting with an existing business. Name conflicts are actually one of the primary reasons why many LLC/corporation/DBA applications are rejected by the state or county processing office.

Fortunately, running a name search isn’t complex process and you don’t need a lawyer to help you. Perform a trademark search to check the availability of any name in the U.S. By checking to make sure your name is available early on, you’ll have peace of mind knowing that you won’t find yourself at the wrong end of a trademark dispute sometime down the road.

2. Pick Your Business Structure

Unless you specifically create a formal business structure with the state, then you’re operating as a sole proprietor by default (if you’re a single owner). While the sole proprietorship may be the right choice for certain situations due to its simplicity, you should consider this move carefully. With a sole prop or general partnership, there’s no separation between the business and business owner. This can keep things simple, but if a business is sued or can’t pay its bills/debts, the business owner(s) are personally on the line.

When you create a formal business structure with the state, you are separating yourself from the business. Popular structures include the Limited Liability Company (LLC) and Corporation (either S or C Corporation). A little research will help you determine which structure is right for your situation. For example, the LLC is great for people who want liability protection (i.e. to protect their personal assets if their business is ever sued) but don’t want a lot of paperwork or administrative formality. The C Corporation is better for companies who plan to go public or get VC financing.

You can also take the self quiz to determine the best business structure for your business. It’s fast.

3. Register Your Business Name

If you decide to form an LLC or corporation, that will automatically register your business name and you can skip over this step. But if you’re not quite ready for a formal business structure and stay a sole prop, then you’ll need to register your business name by filing a Doing Business As (DBA), also known as the Fictitious Business Name. This step lets the public know who’s behind a company, ensures that you’re legally able to operate your business under that name, as well as stops anyone else from using your business name in your state.

Keep in mind that while a “Doing Business As” application protects your name in your state, it doesn’t stop anyone from using the same name in the other 49 states. You can, however, file for trademark protection to protect your name and brand in all 50 states.

4. Apply For a Federal Tax ID Number or Employer Identification Number (EIN)

The IRS tracks your company’s transactions via a Tax ID number. Think of it as a social security number for businesses.

If you’re operating as an LLC or corporation, your business is required to have a Tax ID number and you’ll also need one to open your business bank account.

If you are a sole proprietor, you’re not obligated legally to get a Tax ID number, but it’s smart practice. With a Tax ID number, you won’t have to give out your personal security number to every client or vendor you work with.

Read how to apply for an EIN at the IRS website.

5. Apply For Any Necessary Permits

Depending on what kind of business you have and where you live, you may need to get business licenses from the state, county, or town. Examples include: zoning permit, sales tax license, permit from the health department, professional licenses, or a general business operation license. Keep in mind that a tattoo artist, daycare center, or restaurant will be more tightly regulated than a copywriter or business consultant.

You can read more about business licenses and permits here. If you are not sure about business licenses that may be required, check out our free tool called the “Business License Compliance Package.”   You can find out all the licensing requirements and applications for your particular business in the state and county where you are conducting your business.

6. Brush up on Employer Laws

If you are planning on hiring an employee for your business, you need to clearly understand your legal obligations as an employer, including payroll and withholding taxes, unemployment insurance, anti-discrimination laws, OSHA regulations, workers’ compensation, and wage/hour requirements. If this is your first time hiring an employee, it might be wise to speak with an employment law professional or consultant to fully understand all the legal intricacies.

The new calendar year is an ideal time to turn your dreams into reality by becoming your own boss and starting a new business. But in the excitement of your new venture, don’t forget to get your legal foundation squared away. And if you’ve been running a business for years without thinking about these things, now’s the time to catch up! These activities are fundamental to your business’ long-term health and to the security of your finances.

We hope this startup checklist gets you on the right path. Here’s to a prosperous and productive 2014!

Legal checklist photo via Shutterstock

More in: 2014 trends

3 Examples of The Mobile Lending Trend: CUNA, Kabbage and Prosper

Small business lending is increasingly going mobile - and we predict you can expect to see more about the mobile lending trend in 2014.

Three companies are addressing it in different ways. Let’s take a quick look at each:

Kabbage, an Atlanta-based company specializing in loans for online sellers and home-based businesses, has iPhone and Android apps.  Small businesses can apply for funds on mobile devices, and access their accounts via their iPhone or Android devices, as well.

Sarah Eyres is co-owner of Cephalopod Yarns, a Baltimore-based yarn store. When a shipment was delayed, she needed to buy 200 pounds of yarn to get her through the Holiday shopping season. And she used $3,500 from Kabbage to do it.

The loan was approved in just seven minutes, Eyres said.

She told The Washington Post:

“I would have just been sitting and waiting for that shipment. I would not have felt comfortable [making the purchase] without the loan.”

CUNA Mutual Group, a Madison, Wis. insurance company that supplies financial products and services to many credit unions, also offers a mobile version of its Loanliner.com system that credit unions can extend to their members.

Peer to peer lending is also converging with mobile.  There’s already been speculation that peer to peer lending will gain ground compared to traditional bank loans as a viable option for small business funding.

So it probably makes sense that peer-to-peer lenders like Prosper.com have already have mobile lending, too. Prosper.com’s app lets investors select business listings they would like to lend to and even lets them transfer the funds from a mobile device.

One thing to remember:  the apps don’t necessarily allow you to do everything using a mobile device.  Each app and its functionality will be different.

Of course, the apps don’t necessarily make it any easier to qualify for a loan. It only makes it faster for those who are approved.

Finally, remember the security issues that have abounded with mobile technology. So be aware of the information these apps request from you when applying. It may have an impact on which lending apps you’re willing to try.

Image via Kabbage

3 Examples of The Mobile Lending Trend: CUNA, Kabbage and Prosper

Small business lending is increasingly going mobile - and we predict you can expect to see more about the mobile lending trend in 2014.

Three companies are addressing it in different ways. Let’s take a quick look at each:

Kabbage, an Atlanta-based company specializing in loans for online sellers and home-based businesses, has iPhone and Android apps.  Small businesses can apply for funds on mobile devices, and access their accounts via their iPhone or Android devices, as well.

Sarah Eyres is co-owner of Cephalopod Yarns, a Baltimore-based yarn store. When a shipment was delayed, she needed to buy 200 pounds of yarn to get her through the Holiday shopping season. And she used $3,500 from Kabbage to do it.

The loan was approved in just seven minutes, Eyres said.

She told The Washington Post:

“I would have just been sitting and waiting for that shipment. I would not have felt comfortable [making the purchase] without the loan.”

CUNA Mutual Group, a Madison, Wis. insurance company that supplies financial products and services to many credit unions, also offers a mobile version of its Loanliner.com system that credit unions can extend to their members.

Peer to peer lending is also converging with mobile.  There’s already been speculation that peer to peer lending will gain ground compared to traditional bank loans as a viable option for small business funding.

So it probably makes sense that peer-to-peer lenders like Prosper.com have already have mobile lending, too. Prosper.com’s app lets investors select business listings they would like to lend to and even lets them transfer the funds from a mobile device.

One thing to remember:  the apps don’t necessarily allow you to do everything using a mobile device.  Each app and its functionality will be different.

Of course, the apps don’t necessarily make it any easier to qualify for a loan. It only makes it faster for those who are approved.

Finally, remember the security issues that have abounded with mobile technology. So be aware of the information these apps request from you when applying. It may have an impact on which lending apps you’re willing to try.

Image via Kabbage

Ramon’s 4, 2014 Commitments: Evernote, Reviewing notes, Accounting 101 and more

Consumers have literally millions of mobile apps to choose from when downloading a new app to their smartphones. However, if you’re an app developer looking to stand out, this makes marketing more important than ever. Even if your app serves a uniquely valuable purpose, unless you have a way to get that message out to customers, your app is destined to fail.

With so many developers and apps crowding the marketplace, your marketing strategy needs to both hit marketing fundamentals while innovatively reaching your audience in ways your competition isn’t. Try some of the following ideas to market your app in ways other company’s don’t.

Start Early

Don’t wait until you’ve submitted your app for approval to begin generating buzz. Remember, your app is software. From game developers to account software designers, every type of software benefits from having the market warmed-up at its time of launch. Even though app purchase decisions are often made on the spur of the moment, the same principle applies to launching apps, too.

One way to do this is to spend time where your target customers hang out. Do they spend time on Reddit? Offer a Reddit-exclusive sneak preview and ask if there are any features potential users want you to add before launch. Contact websites that feature articles aimed at your audience and offer to do interviews or share sneak-previews.

You could also work on building an email list of potentially interested customers so you can alert them when your app launches, instantly getting a  sales boost.

Advertise In Your Apps

While this practice is very common in free-to-play games (that monetize through in-app-purchases), advertising your apps in other apps can raise awareness. Doing this has several benefits:

• You’ll target users who you know are willing to pay for your apps because they’ve done it before

• You’ll create awareness for your development team and generate more interest in apps sold by your company

• You won’t have to pay expensive pay-per-click fees for advertising on other sites

• You’ll naturally have a big increase in other app downloads

The actual method you want to use for in-app advertisements depends on your app and customers, so test a few methods and stick with the one that works best.

Get Reviews

Not only will reviews let your customers know your app is worth buying, it’ll also help to build your link profile and boost your SEO. If you want to know where to begin, check out this list of iOS review sites in order of their Alexa rating (and which will help your SEO the most).

Try youAPPi (And Other Listing Services)

Just like you’d make sure your local business is listed on the right online directories, you need to make sure your app is listed in the right places, too. This will make it a lot easier for you to be able to track down. Sites like YouAppi allow you to get your app in front of the eyes of potential customers.

Investing in services like these usually aren’t free, but the additional downloads you’ll get make them more than worth it.

Advertise On Your Mobile Site

Does your business have a mobile site? An unobtrusive advertisement for your mobile app on your mobile site will naturally connect your smartphone, tablet, and other mobile-device users with your app.

Have a Great App

The most important thing you can do to promote your mobile app is to have an app worth promoting. Throwing together a cheap, buggy app designed to sell ad space isn’t going to fool anyone. The most successful apps offer users valuable content, functionality, and more.

Ramon’s 4, 2014 Commitments: Evernote, Reviewing notes, Accounting 101 and more

Consumers have literally millions of mobile apps to choose from when downloading a new app to their smartphones. However, if you’re an app developer looking to stand out, this makes marketing more important than ever. Even if your app serves a uniquely valuable purpose, unless you have a way to get that message out to customers, your app is destined to fail.

With so many developers and apps crowding the marketplace, your marketing strategy needs to both hit marketing fundamentals while innovatively reaching your audience in ways your competition isn’t. Try some of the following ideas to market your app in ways other company’s don’t.

Start Early

Don’t wait until you’ve submitted your app for approval to begin generating buzz. Remember, your app is software. From game developers to account software designers, every type of software benefits from having the market warmed-up at its time of launch. Even though app purchase decisions are often made on the spur of the moment, the same principle applies to launching apps, too.

One way to do this is to spend time where your target customers hang out. Do they spend time on Reddit? Offer a Reddit-exclusive sneak preview and ask if there are any features potential users want you to add before launch. Contact websites that feature articles aimed at your audience and offer to do interviews or share sneak-previews.

You could also work on building an email list of potentially interested customers so you can alert them when your app launches, instantly getting a  sales boost.

Advertise In Your Apps

While this practice is very common in free-to-play games (that monetize through in-app-purchases), advertising your apps in other apps can raise awareness. Doing this has several benefits:

• You’ll target users who you know are willing to pay for your apps because they’ve done it before

• You’ll create awareness for your development team and generate more interest in apps sold by your company

• You won’t have to pay expensive pay-per-click fees for advertising on other sites

• You’ll naturally have a big increase in other app downloads

The actual method you want to use for in-app advertisements depends on your app and customers, so test a few methods and stick with the one that works best.

Get Reviews

Not only will reviews let your customers know your app is worth buying, it’ll also help to build your link profile and boost your SEO. If you want to know where to begin, check out this list of iOS review sites in order of their Alexa rating (and which will help your SEO the most).

Try youAPPi (And Other Listing Services)

Just like you’d make sure your local business is listed on the right online directories, you need to make sure your app is listed in the right places, too. This will make it a lot easier for you to be able to track down. Sites like YouAppi allow you to get your app in front of the eyes of potential customers.

Investing in services like these usually aren’t free, but the additional downloads you’ll get make them more than worth it.

Advertise On Your Mobile Site

Does your business have a mobile site? An unobtrusive advertisement for your mobile app on your mobile site will naturally connect your smartphone, tablet, and other mobile-device users with your app.

Have a Great App

The most important thing you can do to promote your mobile app is to have an app worth promoting. Throwing together a cheap, buggy app designed to sell ad space isn’t going to fool anyone. The most successful apps offer users valuable content, functionality, and more.