The Role of Data in Expanding Business
At the heart of my role as an entrepreneur is growth. Over the years, I’ve shifted from wearing multiple hats to focusing intensely on this single area. To effectively expand our business, we collect and analyze data throughout the year. We use tools like HubSpot to monitor customer journeys and interactions, which helps us understand what drives conversions and fosters growth.
Year-End Analysis: Setting the Stage for Growth
Every December, I dive deep into the data collected over the past year. This isn’t just a cursory glance but a thorough analysis to identify what strategies were most successful in acquiring new customers. I look specifically at the last actions our customers took before making a purchase (last touch) and the various interactions they had with our brand (touchpoints).
Three Key Questions for Strategic Planning
As I sift through the data, my planning revolves around three pivotal questions:
- What do we start doing? Identifying new strategies that could potentially increase our effectiveness.
- What do we stop doing? Cutting out the least effective strategies to free up resources.
- What do we keep doing? Doubling down on proven strategies to maintain and enhance our momentum.
Implementing the Start, Stop, Keep Methodology
This methodology helps me make strategic decisions about where to allocate resources in the coming year. For example:
- Stop: We discontinue strategies that produce minimal returns, thus saving time and resources.
- Keep: We scale up the most successful strategies that have proven their value.
- Start: We introduce new initiatives based on successful categories, pushing for innovation and testing new waters.
Expanding Business through Strategic Agility
The essence of expanding a business lies not just in sticking to what works but also in being agile enough to adapt to changing conditions and opportunities. By understanding what actions lead to conversions and constantly refining our approach, we can foster sustainable growth.
Looking Ahead: Building a Plan for 2025
All this data and strategic planning culminate in our annual planning meeting where we, along with my business partners, sketch out a broad blueprint for the next year. This plan isn’t rigid but serves as a guideline to steer our efforts, ensuring that every department from sales to customer success is aligned and focused on common goals.
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Time-Stamped Show Notes
- [00:00:30] Introduction: Insights into the end-of-year strategic review process.
- [00:01:30] The critical role of data in expanding business and planning for the new year.
- [00:02:30] Detailed analysis of customer data and how it influences our growth strategies.
- [00:03:30] Application of the Start, Stop, Keep methodology in our strategic planning.
- [00:04:30] Examples of what we’re stopping, keeping, and starting in our efforts to expand the business.
- [00:05:30] The significance of strategic agility in sustaining and expanding business growth.
- [00:06:00] Wrap-up: Preparing for the upcoming annual planning meeting and setting the stage for 2025.