1 00:00:00,400 --> 00:00:03,960 The Better Business Analysis Institute presence. 2 00:00:03,960 --> 00:00:07,760 The Better Business Analysis Podcast with Kenjamin Walsh. 3 00:00:12,000 --> 00:00:14,880 Hi everybody, and welcome back to the Better Business Analysis 4 00:00:14,880 --> 00:00:18,880 Podcast with Benjamin Walsh. And today we are going to be 5 00:00:18,880 --> 00:00:22,680 focusing on some business statistics that every business 6 00:00:22,680 --> 00:00:24,880 analyst should know. OK. 7 00:00:24,880 --> 00:00:29,480 The key business statistics that you should really be aware of 8 00:00:29,960 --> 00:00:34,680 when talking to the leadership team or monitoring as a business 9 00:00:34,680 --> 00:00:37,960 as a whole. So we're going to go through the 10 00:00:37,960 --> 00:00:41,320 list. It's not, you know there are 11 00:00:41,440 --> 00:00:44,360 quite a lot of statistics that you can know and I'm just going 12 00:00:44,360 --> 00:00:48,880 to talk about 10, OK. What I think are the top ten 13 00:00:49,400 --> 00:00:54,400 business statistics that will give you an idea around the 14 00:00:54,400 --> 00:00:58,880 performance of the organization and provide insights into the 15 00:00:59,080 --> 00:01:04,040 your organization's overall health and allow you to kind of 16 00:01:04,040 --> 00:01:06,880 track progress or identify areas for improvement. 17 00:01:07,440 --> 00:01:09,480 It also helps make informed decisions. 18 00:01:09,720 --> 00:01:15,040 So a lot of these key indicators may be tied up in your objective 19 00:01:15,040 --> 00:01:17,360 statements or your strategic plan. 20 00:01:17,640 --> 00:01:21,080 So it may, the first one for example is number one is 21 00:01:21,080 --> 00:01:25,960 revenue, how much money is your company generating and of course 22 00:01:26,000 --> 00:01:30,440 that their revenue is usually could be a factor in terms of 23 00:01:30,440 --> 00:01:32,560 increasing revenue by 10% year on year. 24 00:01:34,480 --> 00:01:37,840 Sometimes that's actually a pretty, pretty important step. 25 00:01:38,200 --> 00:01:41,440 We'll talk talk about how revenue plays into something 26 00:01:41,440 --> 00:01:48,040 called EBITDA later, but revenue is a key underlying step that 27 00:01:48,320 --> 00:01:52,120 you should really know. So I will say that depends when 28 00:01:52,120 --> 00:01:55,400 I when I say you should know this, it depends on kind of what 29 00:01:55,560 --> 00:01:58,880 kind of BA work you're doing. But if you're a business owner 30 00:01:58,880 --> 00:02:02,160 or you are dealing with the executive team, revenue should 31 00:02:02,160 --> 00:02:06,840 be open and honest there. Sometimes it's locked down to a 32 00:02:06,840 --> 00:02:10,039 management team, especially if the figure is sensitive AKA 33 00:02:10,600 --> 00:02:15,600 things aren't going very well. So you may have some trouble 34 00:02:16,160 --> 00:02:18,960 finding out what these numbers are in your company. 35 00:02:18,960 --> 00:02:22,960 I just want to say that straight away, but you're business should 36 00:02:22,960 --> 00:02:24,640 be tracking these. And if you're a startup company, 37 00:02:24,640 --> 00:02:26,480 you want to be tracking these from day one. 38 00:02:27,560 --> 00:02:29,440 OK. So we got to get straight into 39 00:02:29,720 --> 00:02:34,240 the T, the 10 key business statistics every business 40 00:02:34,240 --> 00:02:38,120 analyst should know, starting with #1, which is revenue. 41 00:02:38,360 --> 00:02:41,960 Revenue is the total amount of money that a company generates 42 00:02:41,960 --> 00:02:44,160 from its core business activities, OK. 43 00:02:44,480 --> 00:02:46,640 And it's usually the sale of goods or services. 44 00:02:47,400 --> 00:02:51,680 It's generally the main revenue stream that companies generate 45 00:02:51,680 --> 00:02:54,360 from, unless you're a financial firm and there might be things, 46 00:02:54,720 --> 00:02:58,920 other revenue sources that they can have or you're leasing out 47 00:02:58,920 --> 00:03:00,560 buildings, which could be a revenue stream. 48 00:03:00,840 --> 00:03:04,560 The primary revenue that you really need to worry about as 49 00:03:04,560 --> 00:03:09,840 ABA is the sales of goods and services, OK. 50 00:03:10,320 --> 00:03:12,480 And that's by its core business activities. 51 00:03:12,680 --> 00:03:15,680 And of course core business activities are just processes. 52 00:03:17,440 --> 00:03:22,360 Revenue is a critical metric. It will talk about it's the 53 00:03:22,360 --> 00:03:25,520 company's top line in terms of growth and profitability. 54 00:03:25,840 --> 00:03:33,200 And really having strong revenue is the most important factor in 55 00:03:33,200 --> 00:03:36,000 terms of growth of your company. So if you don't have strong 56 00:03:36,000 --> 00:03:40,760 revenue, then you need to start reducing your costs and you know 57 00:03:40,760 --> 00:03:42,000 things that things don't look good. 58 00:03:42,000 --> 00:03:45,880 So number one is revenue. If you don't increase your 59 00:03:45,880 --> 00:03:48,800 revenue, then you're going to look at restructuring and 60 00:03:48,800 --> 00:03:52,480 lowering costs and things are not going your way. 61 00:03:52,480 --> 00:03:55,960 It's usually a key indicator that you either the market 62 00:03:55,960 --> 00:04:01,360 itself is experiencing a percentage revenue kind of drop. 63 00:04:01,360 --> 00:04:04,960 So you know consumers aren't spending as much money, but if 64 00:04:04,960 --> 00:04:07,960 that revenue drop is not consistent among your 65 00:04:07,960 --> 00:04:11,720 competitors, so your competitors aren't experiencing I'd say a 66 00:04:11,720 --> 00:04:16,040 10% drop and you are and they're only experiencing 1% drop and 67 00:04:16,040 --> 00:04:18,440 there's something wrong with your core business or your core 68 00:04:18,440 --> 00:04:21,480 offer. So red flags, your sales team 69 00:04:21,480 --> 00:04:26,080 may just not be performing, they just may not be as good as the 70 00:04:26,080 --> 00:04:29,240 competition being straight up there at getting deals. 71 00:04:29,720 --> 00:04:31,560 New business is so important here. 72 00:04:31,640 --> 00:04:36,120 Revenue is so important and a lot of people it gets, there are 73 00:04:36,120 --> 00:04:38,160 so many statistics and we do about 10 today. 74 00:04:38,160 --> 00:04:42,960 So, so you know that even even summarizing in terms of 10 75 00:04:43,240 --> 00:04:48,280 people can get so caught up in other factors that they miss 76 00:04:48,280 --> 00:04:53,960 their revenue isn't strong almost and your costs are 77 00:04:53,960 --> 00:04:57,800 reasonable. So that's the flip side then you 78 00:04:57,800 --> 00:05:01,240 know there's there's nothing else your business is in is in 79 00:05:01,240 --> 00:05:05,720 the poke. So revenue is definitely #1, #2 80 00:05:06,880 --> 00:05:10,320 is gross profit margin or sometimes just referred to as 81 00:05:10,320 --> 00:05:14,880 gross margin, The profit margin sometimes and we talk about 82 00:05:14,880 --> 00:05:17,200 gross and we talk about net and we'll start with gross. 83 00:05:17,200 --> 00:05:19,720 So gross profit margin is the measure of the company's 84 00:05:19,720 --> 00:05:24,240 profitability before deducting operating expenses. 85 00:05:25,640 --> 00:05:27,800 OK. So I'll what does that mean, 86 00:05:27,880 --> 00:05:30,680 Ben? It is calculated by dividing the 87 00:05:30,680 --> 00:05:39,040 gross profit, OK, by revenue. We're going to talk about what 88 00:05:39,040 --> 00:05:43,360 gross profit is. So revenue minus the costs of 89 00:05:43,360 --> 00:05:49,040 the goods sold. So gross profit is effectively 90 00:05:49,880 --> 00:05:54,280 what you earn before your your your costs. 91 00:05:55,120 --> 00:05:57,600 Sorry. So your gross profit is your 92 00:05:57,600 --> 00:05:59,440 revenue. So how much money you came in 93 00:05:59,440 --> 00:06:01,880 and minus your cost is your gross profit. 94 00:06:01,880 --> 00:06:04,880 So it's the difference between your revenue and your costs to 95 00:06:05,040 --> 00:06:06,640 generate their revenue. OK. 96 00:06:07,320 --> 00:06:11,640 The gross profit is your revenue minus your costs. 97 00:06:12,000 --> 00:06:15,680 Now if we take that gross profit figure, so let's just, I'll just 98 00:06:15,680 --> 00:06:17,920 give you an example. So it's very, very clear. 99 00:06:18,440 --> 00:06:24,520 So let's say you earned $1 million in revenue, so $1 100 00:06:24,520 --> 00:06:27,800 million was paid in invoices to your company for your goods. 101 00:06:28,320 --> 00:06:33,040 So you earned $1 million and and it cost you in order to generate 102 00:06:33,040 --> 00:06:36,880 the revenue, all the cost of the business although standard cost 103 00:06:36,880 --> 00:06:40,840 of a business cost of goods like paying staff let's say and and 104 00:06:40,920 --> 00:06:44,440 and all the materials it costs to deliver those services cost 105 00:06:44,440 --> 00:06:49,320 you $800,000. Then your gross profit is 106 00:06:49,320 --> 00:06:56,240 $200,000 revenue minus your cost of goods sold, OK, so that's 107 00:06:56,240 --> 00:06:59,320 $200,000. So that's your gross profit. 108 00:06:59,520 --> 00:07:04,920 And then if you divide the $200,000 by the $1,000,000, 109 00:07:04,920 --> 00:07:08,200 which is your revenue, you end up with a gross margin. 110 00:07:08,200 --> 00:07:12,680 So in that case, it's 20%. Your gross profit margin equals 111 00:07:12,680 --> 00:07:15,720 20%. A higher gross profit margin 112 00:07:15,720 --> 00:07:19,000 indicates the company is effectively converting sales 113 00:07:19,000 --> 00:07:22,080 into profits. So we talked about the flip side 114 00:07:22,080 --> 00:07:26,480 between the fact that our revenue is critical in terms of 115 00:07:26,480 --> 00:07:28,360 the growth of a company. It can stand still and your 116 00:07:28,360 --> 00:07:33,360 revenue could be could be stagnant, but your if your cost 117 00:07:33,360 --> 00:07:36,960 of goods remain the same or go down, your costs go down then 118 00:07:36,960 --> 00:07:38,520 you can still be earning a profit. 119 00:07:39,000 --> 00:07:42,160 However, if your costs are going up and your revenue staying 120 00:07:43,360 --> 00:07:46,600 staying still, then what you see is that your gross profit margin 121 00:07:46,600 --> 00:07:49,480 is going down, OK. So it's just one easy figure 122 00:07:49,480 --> 00:07:52,640 instead of a number like 200,000 which is your gross profit, 123 00:07:53,440 --> 00:07:58,760 gross profit margin is, is a percentage is very helpful 124 00:07:58,840 --> 00:08:01,360 because you you can measure that figure and it's probably the 125 00:08:01,360 --> 00:08:04,240 number one figure talked about. So revenue and gross profit 126 00:08:04,240 --> 00:08:06,720 margin are the two figures that management talk about. 127 00:08:06,960 --> 00:08:10,200 So I go we earned $1,000,000 in terms of revenue and our margin 128 00:08:10,200 --> 00:08:15,920 was 20% and and that figure that 20% figure is actually kind of 129 00:08:16,200 --> 00:08:20,040 you can benchmark that against other industries and and some 130 00:08:20,040 --> 00:08:22,280 industries that figure is higher. 131 00:08:22,280 --> 00:08:25,920 And so you know people are making a 30% margin that's how 132 00:08:25,920 --> 00:08:31,040 it's discussed. And then maybe in a for example 133 00:08:31,040 --> 00:08:33,919 supermarket the margins are actually lower. 134 00:08:34,120 --> 00:08:36,760 So it's about the amount of sales and we'll we'll get that 135 00:08:36,919 --> 00:08:39,200 get to that. But in a minute their margin's 136 00:08:39,200 --> 00:08:43,480 actually little, it could be like 5% or 2% and that's OK 137 00:08:43,480 --> 00:08:47,120 because of their business model. But say you're selling a luxury 138 00:08:47,120 --> 00:08:53,400 item like a sports car or a shop, your margin needs to be 139 00:08:53,400 --> 00:08:57,040 high, higher than that. And so depending on the industry 140 00:08:57,040 --> 00:09:03,080 that's that, that'll indicate a figure and the most important is 141 00:09:03,080 --> 00:09:06,560 the trend of that, right. So when you start up or go 142 00:09:06,560 --> 00:09:12,480 through some drama, the if that percentage is going down, then 143 00:09:12,480 --> 00:09:14,200 it indicates that something's going. 144 00:09:14,200 --> 00:09:19,720 Either your costs are going through the roof or your revenue 145 00:09:19,720 --> 00:09:24,400 is starting to, you know, fluctuate and and maybe not go 146 00:09:24,400 --> 00:09:26,000 in the right direction. So gross is stilled. 147 00:09:26,280 --> 00:09:28,560 So gross profit, profit margin is really important. 148 00:09:29,400 --> 00:09:34,960 Also when you think about the like if you're investing in a 149 00:09:34,960 --> 00:09:38,240 company or you put your money in the bank, you get interest. 150 00:09:38,680 --> 00:09:41,560 This figure is very similar to that figure when discussing 151 00:09:41,560 --> 00:09:44,000 whether or not it's worth investing in the company, OK, 152 00:09:44,000 --> 00:09:45,400 depending on how much margin it makes. 153 00:09:45,400 --> 00:09:48,480 So we're going to quickly. So that's your gross profit 154 00:09:48,480 --> 00:09:51,920 margin and then we're going to move to #3, which is your net 155 00:09:52,160 --> 00:09:55,520 profit margin. So net profit margin is the 156 00:09:55,520 --> 00:09:59,040 measure of the company's profitability after deducting 157 00:09:59,280 --> 00:10:03,880 all operating expenses including taxes, OK. 158 00:10:04,120 --> 00:10:06,920 So when we talked about the gross profit margin, there were 159 00:10:06,920 --> 00:10:10,920 things we could control that was the how much cost we spent to 160 00:10:10,920 --> 00:10:14,800 generate the revenue, whereas the net is generally there are 161 00:10:14,800 --> 00:10:18,320 other kind of expenses that a company has to run like maybe 162 00:10:19,280 --> 00:10:22,320 depreciation on assets and all all these accounting figures. 163 00:10:22,560 --> 00:10:24,920 But the biggest one is probably tax, right? 164 00:10:24,920 --> 00:10:26,880 So if you paid your tax, how much you got left? 165 00:10:27,280 --> 00:10:30,480 So net profit margin is calculated by dividing the net 166 00:10:30,480 --> 00:10:33,440 income. So that's revenue minus all 167 00:10:33,440 --> 00:10:39,680 expenses by revenue, OK. So as opposed to a gross profit 168 00:10:39,680 --> 00:10:43,120 margin which is revenue minus the cost of goods sold. 169 00:10:43,120 --> 00:10:47,720 So them the bits you can control, you know people costs 170 00:10:47,720 --> 00:10:51,080 and costs that go into delivering the actual end 171 00:10:51,080 --> 00:10:54,080 product or service. Net profit management is revenue 172 00:10:54,080 --> 00:10:57,200 mining all the expenses. So every single expense you have 173 00:10:57,200 --> 00:11:01,320 the car expense, the the tax expense, you know it's all the 174 00:11:01,320 --> 00:11:05,400 costs of doing business, not just generating the service that 175 00:11:05,400 --> 00:11:08,440 you provide the revenue minus all of your costs, just like you 176 00:11:08,440 --> 00:11:09,800 might do at home with your budget. 177 00:11:09,800 --> 00:11:12,920 So you know your income for the year minus all the things you 178 00:11:12,920 --> 00:11:17,480 have to pay everything and you divide that by revenue. 179 00:11:17,640 --> 00:11:23,480 So again the net profit margin is really clear and we talk 180 00:11:23,480 --> 00:11:27,080 about this a lot too. So it indicates more than just 181 00:11:27,200 --> 00:11:29,560 the, when we talk about the gross profit margin, that's kind 182 00:11:29,560 --> 00:11:33,760 of just looking at delivering services net profit margin. 183 00:11:34,400 --> 00:11:37,240 Higher net profit margin indicates that the company or 184 00:11:37,240 --> 00:11:41,040 organization is effectively in man managing its expenses, all 185 00:11:41,040 --> 00:11:45,400 expenses and generating profit. So you can look at the 186 00:11:45,400 --> 00:11:47,600 difference between your gross profit margin and your net 187 00:11:47,600 --> 00:11:50,400 profit margin. And one really good example here 188 00:11:50,400 --> 00:11:52,960 is that if you were a company that generated money through 189 00:11:52,960 --> 00:11:55,960 people, like a recruitment company for example, or a 190 00:11:55,960 --> 00:12:00,960 consultancy company where you're charging your client a right to 191 00:12:00,960 --> 00:12:03,160 do business. If there was a massive 192 00:12:03,160 --> 00:12:07,080 difference between gross profit margin and net profit margin, it 193 00:12:07,080 --> 00:12:10,240 would mean that your back office staff, not the cost of goods 194 00:12:10,240 --> 00:12:13,120 sold, which are the people going out and doing the work, but that 195 00:12:13,120 --> 00:12:17,880 the the people cost and the location cost of your 196 00:12:17,880 --> 00:12:20,440 organization. The ones that don't generate 197 00:12:21,000 --> 00:12:25,000 profit just are what we call a sunk cost or just a cost that 198 00:12:25,000 --> 00:12:29,200 you need to do back in business. Your back in function may be too 199 00:12:29,200 --> 00:12:33,720 big, always inefficient. So that's why gross profit and 200 00:12:33,720 --> 00:12:36,440 net profit are interesting and then of course revenue. 201 00:12:37,360 --> 00:12:40,040 So that's how we and and and these are really important 202 00:12:40,040 --> 00:12:42,640 because you can't, you really want to be able to monitor these 203 00:12:42,640 --> 00:12:46,680 figures on a dashboard and those three figures are so important. 204 00:12:46,680 --> 00:12:49,840 So revenue, gross profit margin and net profit margin and then 205 00:12:49,840 --> 00:12:53,320 of course you can look at all the costs and once you that 206 00:12:53,320 --> 00:12:56,280 costs the divide into different categories like your expenses, 207 00:12:56,640 --> 00:12:59,640 it becomes a little bit harder then you have to do some more 208 00:12:59,640 --> 00:13:01,880 analysis. So it's a bit like your own 209 00:13:01,880 --> 00:13:04,920 home. You could say when you pay all 210 00:13:04,920 --> 00:13:07,840 your bills with your income, when you pay all your bills, 211 00:13:08,000 --> 00:13:11,800 what's left? You know when you, when you pay 212 00:13:11,800 --> 00:13:14,920 the mortgage, that's probably your biggest expense and food 213 00:13:14,920 --> 00:13:17,040 cost. And then you could say that all 214 00:13:17,040 --> 00:13:19,480 the other expenses are a little bit more optional, like if you 215 00:13:19,480 --> 00:13:23,480 go on a holiday or you buy nice cheese this week or you, I don't 216 00:13:23,800 --> 00:13:28,560 know, buy pay off a nice car, that's probably more like your 217 00:13:28,560 --> 00:13:29,920 net profit margin. So. 218 00:13:30,440 --> 00:13:33,080 So you have a bit of a choice between your gross profit, what 219 00:13:33,080 --> 00:13:35,640 you have to have and then your net profit margin. 220 00:13:35,960 --> 00:13:38,680 OK. So the top three revenue, gross 221 00:13:38,680 --> 00:13:42,120 profit margin and net profit margin and people sometimes just 222 00:13:42,120 --> 00:13:45,600 say words like what's your margin, petrol companies do 223 00:13:45,600 --> 00:13:47,680 that. I worked at a large petrol 224 00:13:47,680 --> 00:13:50,560 company here in New Zealand. I mean it's now an energy 225 00:13:50,560 --> 00:13:54,360 company doesn't just do petrol, but it was revenue and they have 226 00:13:54,360 --> 00:13:56,520 to have margin. They talked about volume, so the 227 00:13:56,520 --> 00:14:00,320 amount of sales they got and those figures. 228 00:14:00,680 --> 00:14:05,880 In a petrol business, generally your margin is low, sometimes 229 00:14:05,880 --> 00:14:07,920 regulated, so you can't earn a certain amount. 230 00:14:08,080 --> 00:14:13,120 But of course, if your petrol prices go up, so does the amount 231 00:14:13,120 --> 00:14:16,320 of money you make. Yes. 232 00:14:16,480 --> 00:14:20,760 OK, cool. So if we now move over to the 233 00:14:20,760 --> 00:14:24,840 number 4 stat and this is, look, I have chosen stats that are 234 00:14:24,840 --> 00:14:28,440 more customer specific because we're living in a customer 235 00:14:28,440 --> 00:14:31,760 focused world. So these are not necessarily the 236 00:14:31,760 --> 00:14:36,400 figures or the stats that when you started doing business in 237 00:14:36,560 --> 00:14:40,400 the 80s you might have come up with, but these are actually 238 00:14:40,520 --> 00:14:45,480 really critical in 2023. So the next one I think is 239 00:14:45,480 --> 00:14:49,960 customer acquisition costs, sometimes an acronym of CAC. 240 00:14:50,400 --> 00:14:55,960 So customer acquisition cost is the average amount of money a 241 00:14:55,960 --> 00:14:58,120 company spends to acquire a new customer. 242 00:15:00,240 --> 00:15:03,600 So to acquire a new customer to buy a new customer. 243 00:15:03,600 --> 00:15:05,840 And it might sound a bit weird that we buy customers, but we 244 00:15:05,840 --> 00:15:09,960 do, we buy a customer through the spend on sales and 245 00:15:09,960 --> 00:15:14,000 marketing. So all the expenses for sales, 246 00:15:14,560 --> 00:15:18,200 all the marketing plans, campaigns, how much do you spend 247 00:15:18,200 --> 00:15:22,400 on that for that is what you do, that's the activities that you 248 00:15:22,400 --> 00:15:26,280 do in order to sell your product, you know knocking on 249 00:15:26,280 --> 00:15:30,640 doors, doing campaigns. That is all your acquisition 250 00:15:30,640 --> 00:15:34,360 costs and we need to take that total cost. 251 00:15:34,360 --> 00:15:39,440 So let's say that's 100,000 a year, that's very, very light of 252 00:15:39,440 --> 00:15:45,720 course and say for $100,000 a year we acquired we we spent on 253 00:15:45,720 --> 00:15:51,480 sales and marketing and we acquired 1000 customers, OK. 254 00:15:51,480 --> 00:15:56,600 So you would take the 1000 customers and you would divide 255 00:15:56,600 --> 00:15:59,920 that by your cost and then that would give you how much it cost 256 00:15:59,920 --> 00:16:02,680 to acquire a new customer. So in this case it would be 257 00:16:02,680 --> 00:16:05,040 $100. So we've worked out that as 100. 258 00:16:05,360 --> 00:16:09,360 We we pay $100 in order to we spend $100 in sales and 259 00:16:09,360 --> 00:16:12,920 marketing in order to acquire one new customer and that's so 260 00:16:12,920 --> 00:16:16,560 important because that figure depending on what you're selling 261 00:16:17,160 --> 00:16:21,320 if it cost us $100 to buy a new customer and we're just selling 262 00:16:21,320 --> 00:16:27,360 them a one off product which is costs $100 then you're not you 263 00:16:27,360 --> 00:16:31,920 might be making money but your costs you're just covering your 264 00:16:31,920 --> 00:16:34,640 costs right and and and and we're only throughout sales and 265 00:16:34,640 --> 00:16:36,840 marketing there's all the other expenses in your company. 266 00:16:36,840 --> 00:16:40,320 So it's a really important figure to work out but also 267 00:16:40,320 --> 00:16:43,360 people under the in saying that it's not always bad. 268 00:16:43,360 --> 00:16:47,240 Sometimes people don't do enough in sales and marketing they're 269 00:16:47,240 --> 00:16:50,440 making when they sell their product and they've got a a 270 00:16:51,280 --> 00:16:55,880 highly sought after product or a great product that people want 271 00:16:56,520 --> 00:16:58,560 and they've got a good price point and they're making good 272 00:16:58,560 --> 00:17:00,880 margin on it. Like we talked about before, 273 00:17:01,880 --> 00:17:04,000 they might not be spending enough on sales and marketing. 274 00:17:04,000 --> 00:17:06,680 So you really need to know how much does it cost for us to 275 00:17:06,680 --> 00:17:10,280 acquire a new customer, which is your CAC, your customer 276 00:17:10,280 --> 00:17:13,280 acquisition cost, how much does it cost, how much do we spend 277 00:17:13,520 --> 00:17:15,920 sales and marketing to acquire one new customer? 278 00:17:16,400 --> 00:17:19,160 Really critical. And that figure plus the figure 279 00:17:19,160 --> 00:17:22,720 you make on your individual product sale is really 280 00:17:22,720 --> 00:17:25,400 important. And that leads us on to the next 281 00:17:25,520 --> 00:17:29,440 figure because it's you'll see this with subscription type 282 00:17:29,440 --> 00:17:32,560 businesses, right. You sometimes look at 283 00:17:32,560 --> 00:17:35,360 subscription type businesses, and I'm going to use an example. 284 00:17:35,880 --> 00:17:39,880 I'm going to use an example of a pet online pet store that sells, 285 00:17:39,880 --> 00:17:44,000 say, cat food. You know, those large bags of 286 00:17:44,000 --> 00:17:46,840 cat food that you might purchase every three months. 287 00:17:47,280 --> 00:17:50,360 So let's say you purchase it every three months, It's 4 * a 288 00:17:50,360 --> 00:17:56,440 year, right? And and maybe you keep buying it 289 00:17:56,440 --> 00:17:59,880 from the same company for at least a year, OK. 290 00:18:00,200 --> 00:18:05,280 And each bag of cat food you spend, you buy them for say, I 291 00:18:05,280 --> 00:18:08,160 don't know, they cost $100. OK. 292 00:18:08,160 --> 00:18:12,560 So you're spending $100 and in the third month six, another six 293 00:18:12,560 --> 00:18:14,240 months later you've spent $200.00. 294 00:18:15,880 --> 00:18:18,520 And then 3/4 of the way through the year you've spent another 295 00:18:18,520 --> 00:18:21,840 $100 bringing up to $300.00. By the end of the year you would 296 00:18:21,840 --> 00:18:25,240 have spent $400.00 in cat food with this one company. 297 00:18:25,800 --> 00:18:29,120 OK, and that figure, the if sale. 298 00:18:29,120 --> 00:18:31,240 And you may have, you may have stayed with that company for a 299 00:18:31,240 --> 00:18:34,400 long time, but let's just say you on average you stay with 300 00:18:34,400 --> 00:18:39,280 this company for a year. We have a figure #5, it's called 301 00:18:39,280 --> 00:18:47,360 customer lifetime value CLV. Customer lifetime value is the 302 00:18:47,360 --> 00:18:52,160 total amount of revenue a company expects to generate from 303 00:18:52,240 --> 00:18:56,320 a customer over their lifetime. So that we've worked out that 304 00:18:56,360 --> 00:19:01,520 the average customer in this case will do 4 purchases of cat 305 00:19:01,520 --> 00:19:02,920 food. So we just look at our, you just 306 00:19:02,920 --> 00:19:06,880 look at our our revenue and right we can, we can, we can, we 307 00:19:06,880 --> 00:19:11,240 can easily work that out. It is calculated by multiplying 308 00:19:11,240 --> 00:19:15,720 the average purchase value, so looking at all your line items 309 00:19:15,720 --> 00:19:18,280 in terms of purchases and working out the average and then 310 00:19:18,280 --> 00:19:21,520 we divide it by the average customer lifespan. 311 00:19:21,800 --> 00:19:26,160 So you should know how long your customer is with you, has been 312 00:19:26,160 --> 00:19:29,640 doing business with you and a higher CLV indicates that 313 00:19:29,640 --> 00:19:32,080 customer is building strong relationships with its 314 00:19:32,080 --> 00:19:35,840 customers, right. So when you are selling a 315 00:19:35,840 --> 00:19:39,520 commodity good, commodity good is something that you can get 316 00:19:39,560 --> 00:19:41,880 pretty much anywhere and there isn't much of a difference 317 00:19:41,880 --> 00:19:45,240 between products and you don't have much loyalty to the company 318 00:19:45,240 --> 00:19:49,400 you're buying it from. Then sometimes customers CLV, 319 00:19:49,400 --> 00:19:52,840 their lifetime value is quite low and so they'll do lots of 320 00:19:52,840 --> 00:19:56,520 marketing and try and keep you on board with that company. 321 00:19:57,000 --> 00:20:00,080 And the reason I give the pit example where I've just said 322 00:20:00,120 --> 00:20:02,160 I've worked out the average customer spends let's say 323 00:20:02,160 --> 00:20:06,360 $400.00. You know that's through 4 324 00:20:06,360 --> 00:20:09,480 transactions over the year they've worked out the customer 325 00:20:09,480 --> 00:20:13,960 stays with them on average for a year and by 4 transactions with 326 00:20:13,960 --> 00:20:18,640 $400.00. The reason why that's important 327 00:20:18,640 --> 00:20:21,680 with the Catfit example is that now you find that they offer you 328 00:20:21,720 --> 00:20:25,440 a cheaper price if you sign up for reoccurring. 329 00:20:26,600 --> 00:20:29,400 Office, right. Instead of doing a one off 330 00:20:29,400 --> 00:20:32,880 purchase for four for you know every three months, they 331 00:20:32,880 --> 00:20:36,920 actually offered you a discount. So they've worked out that they 332 00:20:36,920 --> 00:20:41,720 can, they can, you can, they can offer you a discount of say 20% 333 00:20:42,000 --> 00:20:45,520 if you stay with them or sign up for for longer than a year for 334 00:20:45,520 --> 00:20:47,720 example. You know cancel any time but 335 00:20:47,720 --> 00:20:49,760 it's cheaper and if you don't remember then you're going to be 336 00:20:49,760 --> 00:20:51,720 spending it. So that provides them with that 337 00:20:51,720 --> 00:20:54,280 company with two great advantages. 338 00:20:54,280 --> 00:20:57,080 One you might forget, so you're honest, you know all the 339 00:20:57,080 --> 00:21:00,680 advantages of subscription based is that you know people forget 340 00:21:00,680 --> 00:21:04,280 that they've got a subscription so they'll send you the good and 341 00:21:04,280 --> 00:21:07,320 so they've got guaranteed income and you've also yeah you've 342 00:21:07,320 --> 00:21:10,400 signed up so your customer lifetime value is higher. 343 00:21:11,040 --> 00:21:14,920 And also then the reason why this is really important is we, 344 00:21:15,080 --> 00:21:18,440 when you think about the mark sales and marketing that they 345 00:21:18,440 --> 00:21:22,280 can spend to acquire you, your customer acquisition cost, if it 346 00:21:22,280 --> 00:21:27,720 cost them to say $100 to get you basically to market it to you as 347 00:21:27,720 --> 00:21:31,400 an individual as that's their customer acquisition cost, then 348 00:21:31,400 --> 00:21:34,600 I want you to stay for at least a couple of the sales, right. 349 00:21:35,080 --> 00:21:39,840 So I can afford to drop the price because I know I'm going 350 00:21:39,880 --> 00:21:44,160 to keep you for a longer period of time and it and then I can 351 00:21:44,280 --> 00:21:47,520 and if I've worked out that that's a good amount of money, 352 00:21:47,720 --> 00:21:50,240 then I can spend more marketing, getting more customers. 353 00:21:50,240 --> 00:21:52,320 And so these figures are really important, especially in the 354 00:21:52,320 --> 00:21:56,080 marketing space. So customer lifetime value is 355 00:21:56,080 --> 00:21:59,400 how much are the total revenue a customer expects to generate 356 00:21:59,400 --> 00:22:02,560 from you, basically you as a customer over your lifetime. 357 00:22:03,080 --> 00:22:07,800 And that's that's important too, because like I said, if that is 358 00:22:07,840 --> 00:22:12,880 low, then it will indicate that there are people that don't have 359 00:22:12,880 --> 00:22:15,920 loyalty with you and they don't have a strong connection with 360 00:22:15,920 --> 00:22:18,600 you as your company or your brand or your differentiator. 361 00:22:19,240 --> 00:22:25,280 OK, number six. So number six is the customer 362 00:22:25,280 --> 00:22:28,520 churn rate. So the churn rate is the 363 00:22:28,520 --> 00:22:31,520 percentage of customers who stop doing business with the company 364 00:22:31,960 --> 00:22:33,760 in a given period. OK. 365 00:22:33,760 --> 00:22:35,720 Again, so this this is really important. 366 00:22:35,720 --> 00:22:38,640 So their lifetime value is around the total amount of money 367 00:22:38,640 --> 00:22:43,040 we make for a customer, right. But also you can work out the 368 00:22:43,040 --> 00:22:47,920 number of customers you lost by the right, by the total number 369 00:22:47,920 --> 00:22:50,800 of customers that you had at the beginning of a period. 370 00:22:51,200 --> 00:22:57,120 So if you had 100 customers within a three month period, but 371 00:22:57,120 --> 00:23:01,800 you lost, I don't know 50 of them, then your churn rate is 372 00:23:01,800 --> 00:23:05,320 high and that's about retaining your customers. 373 00:23:05,320 --> 00:23:09,000 So when we talked about South, customer lifetime value and 374 00:23:09,000 --> 00:23:13,800 customer churn rate are LinkedIn some ways, but you wanna keep 375 00:23:13,800 --> 00:23:19,800 customers and so it's around not just acquiring new customers but 376 00:23:19,800 --> 00:23:22,360 keeping your existing customers happy. 377 00:23:22,960 --> 00:23:26,280 Now with an subscription type business and cat food, it's a 378 00:23:26,440 --> 00:23:28,280 bit more of a commodity transaction. 379 00:23:28,800 --> 00:23:31,440 But if you're talking about maybe doing business, say you're 380 00:23:33,120 --> 00:23:38,320 AI, don't know a company that's supplying an international 381 00:23:38,320 --> 00:23:43,840 airline, If you lost a customer, a couple of customers over the 382 00:23:43,840 --> 00:23:46,040 year, that could be critical to your revenue and and that would 383 00:23:46,040 --> 00:23:48,440 shock you. So your customer churn rate 384 00:23:48,440 --> 00:23:50,360 should always, always be measured as well. 385 00:23:51,120 --> 00:23:54,160 That's number six. And then we'll move on to 386 00:23:54,200 --> 00:23:56,760 quickly to #7, which is the conversion rate. 387 00:23:57,360 --> 00:23:59,360 OK. So this conversion rate is 388 00:23:59,360 --> 00:24:04,400 around people knowing about you, so landing on your website, your 389 00:24:04,400 --> 00:24:07,800 landing page. So they, you want to know that 390 00:24:07,800 --> 00:24:11,480 if your marketing is being effective or not by saying, 391 00:24:11,480 --> 00:24:14,080 well, when we market to these people, so we're spending money, 392 00:24:14,080 --> 00:24:18,040 that's a cost that's going out no matter what to send an e-mail 393 00:24:18,040 --> 00:24:23,160 or to update our website or to generate some ads. 394 00:24:23,800 --> 00:24:26,800 And then you need to know how many people are actually going 395 00:24:26,800 --> 00:24:31,120 to make a sale. So a conversion rate indicates 396 00:24:31,120 --> 00:24:34,400 that you're converting. If it's higher, then it 397 00:24:34,400 --> 00:24:38,440 indicates that your website traffic is turning into sales or 398 00:24:38,440 --> 00:24:41,520 leads, OK. And it might could be either of 399 00:24:41,520 --> 00:24:44,440 those depending on what type of conversion you're looking at. 400 00:24:44,800 --> 00:24:47,640 So in the sales process you definitely want to lead, you 401 00:24:47,640 --> 00:24:50,080 want people to know about you, so you're measuring awareness, 402 00:24:50,720 --> 00:24:53,520 but then you want to convert those into sales, but they might 403 00:24:53,520 --> 00:24:56,880 be your sales team effectiveness, Convision for 404 00:24:56,880 --> 00:24:59,720 your sales team and then your conversion in terms of your lead 405 00:24:59,720 --> 00:25:02,480 management. So if your conversion rate is 406 00:25:02,480 --> 00:25:05,760 low then that shows you that your marketing is not effective. 407 00:25:05,760 --> 00:25:10,880 Hope that makes that clear. OK, so these are all very web 408 00:25:11,440 --> 00:25:14,200 focused, but they they're applicable no matter what your 409 00:25:14,200 --> 00:25:17,920 type of business is. So those last four customer 410 00:25:17,920 --> 00:25:22,680 acquisition costs, customer life type, lifetime value, customer 411 00:25:22,680 --> 00:25:25,640 churn rate and conversion rate are really, really critical and 412 00:25:25,640 --> 00:25:30,600 very much more Monday business focused. 413 00:25:31,160 --> 00:25:38,760 But we're going to finish off with three figures that are more 414 00:25:38,880 --> 00:25:43,920 kind of standard business. One is #8, which is return on 415 00:25:43,920 --> 00:25:48,000 investment. So you hear our ROI all the 416 00:25:48,000 --> 00:25:51,000 time. What is the ROI and what that's 417 00:25:51,000 --> 00:25:54,040 about and this is very relevant to business cases we talked 418 00:25:54,040 --> 00:25:57,880 about last week, is return on investment is the measure of 419 00:25:57,880 --> 00:26:00,920 profitability of a certain investment, OK. 420 00:26:01,400 --> 00:26:05,400 It is calculated by dividing the net profit from an investment. 421 00:26:05,400 --> 00:26:10,120 So how much money the investment made for that particular change 422 00:26:10,120 --> 00:26:13,160 or investment or project by the cost of the investment. 423 00:26:13,600 --> 00:26:16,680 A higher return on investment indicates an investment is 424 00:26:16,680 --> 00:26:19,360 generating a good return. And when we talk about 425 00:26:19,360 --> 00:26:22,680 investors, they are looking for a return on investment. 426 00:26:22,960 --> 00:26:28,400 OK, so if I am buying shares for your company, if I buy 1000 427 00:26:28,400 --> 00:26:32,080 shares for a dollar each, I've got 1000 shares worth a worth 428 00:26:32,160 --> 00:26:35,760 $1000. I would expect most companies 429 00:26:35,760 --> 00:26:39,400 would expect a 1010 to 12% return on investment. 430 00:26:39,640 --> 00:26:41,640 That's a standard return on investment. 431 00:26:41,920 --> 00:26:46,200 So that the share price didn't go up to $1.10 over a certain 432 00:26:46,200 --> 00:26:49,720 period, usually a year or so then, and the company isn't 433 00:26:49,720 --> 00:26:56,720 generating a 10% increase in a year, it's usually not worth my 434 00:26:56,720 --> 00:26:58,440 time. Now it can go up and down. 435 00:26:58,440 --> 00:27:01,520 Companies fluctuate, but over a long two year periods the 436 00:27:01,600 --> 00:27:04,320 average return on investment you would hope would be $10. 437 00:27:04,640 --> 00:27:07,760 Sorry, 10% at least 10 to 12% / a period. 438 00:27:08,360 --> 00:27:10,920 So some years it might be 20, some it might be 5. 439 00:27:11,280 --> 00:27:14,400 Now that figure there is exactly the same figure as we talked 440 00:27:14,400 --> 00:27:17,320 about before that you're looking at when you're like deciding 441 00:27:17,320 --> 00:27:20,000 whether or not you want to put your money in the bank or you 442 00:27:20,000 --> 00:27:23,120 want to put it in the company. And some companies have really, 443 00:27:23,760 --> 00:27:26,280 some countries have really low interest rates. 444 00:27:27,040 --> 00:27:30,120 I think the states does and like it's usually linked to your 445 00:27:30,120 --> 00:27:32,800 mortgage rates, whereas in New Zealand we usually have a little 446 00:27:32,800 --> 00:27:35,720 bit higher interest rates. At the moment, I think the 447 00:27:35,720 --> 00:27:39,160 average interest rate for example is around for mortgage, 448 00:27:39,640 --> 00:27:43,520 it's around 8%, which is pretty damn high and it's because 449 00:27:43,520 --> 00:27:46,960 inflation's high and that will probably drop soon hopefully. 450 00:27:48,040 --> 00:27:51,240 And if you put money in the bank, the bank will, you know, 451 00:27:51,240 --> 00:27:54,000 make their margin and probably give you 6%. 452 00:27:54,600 --> 00:27:57,360 So if you put your money in the bank, then you hope to get 6% 453 00:27:57,360 --> 00:28:01,800 back a years later, which is the benefit of having high interest 454 00:28:01,800 --> 00:28:04,040 rates. Now if you're investing a 455 00:28:04,040 --> 00:28:09,960 company, you're taking a higher risk than you are in the bank 456 00:28:11,560 --> 00:28:14,520 most of the time that that would be the case unless there was a 457 00:28:14,520 --> 00:28:17,640 global recession, for example, but that would affect the 458 00:28:17,640 --> 00:28:20,800 company too. And if the company was a large 459 00:28:20,800 --> 00:28:24,240 company and you knew all about it and they were consistent for 460 00:28:24,240 --> 00:28:28,880 say, 50 years, generating a 12% return year on year, then of 461 00:28:28,880 --> 00:28:30,280 course it would be a good investment. 462 00:28:30,280 --> 00:28:34,880 But it was company that you didn't know anything about. 463 00:28:35,320 --> 00:28:37,920 You wouldn't just put your money in there, You would do something 464 00:28:37,920 --> 00:28:41,760 called diversification and you invest in, say, maybe a 465 00:28:41,760 --> 00:28:44,360 portfolio. But this is the figure that this 466 00:28:44,360 --> 00:28:45,520 is what people were talking about. 467 00:28:45,720 --> 00:28:48,960 And if I own a company so I'm the only shareholder or I'm the 468 00:28:48,960 --> 00:28:53,160 director, for example, I would hope to get 12% back on my 469 00:28:53,160 --> 00:28:56,960 return or otherwise I might pull all my money out and put it in 470 00:28:56,960 --> 00:28:58,760 the bank. Does that make sense? 471 00:28:59,280 --> 00:29:01,680 So the return on investment is very, very critical. 472 00:29:01,680 --> 00:29:05,720 And again, that might be very hard for you to figure out in 473 00:29:05,720 --> 00:29:09,360 terms of the return on investment of your actual 474 00:29:09,360 --> 00:29:11,440 company. But you can use return on 475 00:29:11,440 --> 00:29:13,560 investment when you do your business cases. 476 00:29:13,560 --> 00:29:18,400 So is this project worth doing? OK, then we're gonna look at 9, 477 00:29:18,400 --> 00:29:20,160 which is the average order value. 478 00:29:21,480 --> 00:29:25,720 So this is the average, the average order value. 479 00:29:25,720 --> 00:29:30,560 The aov #9 is the average amount of money spent per order. 480 00:29:30,720 --> 00:29:34,200 OK, so it is calculated by dividing the total revenue by 481 00:29:34,200 --> 00:29:38,480 the total number of orders. So this is just indicating the 482 00:29:38,480 --> 00:29:42,480 size of purchase. So if you would like for 483 00:29:42,480 --> 00:29:49,000 example, let's use an example of a supermarket again, it probably 484 00:29:49,000 --> 00:29:51,920 isn't really that helpful to just have someone come in and 485 00:29:51,920 --> 00:29:53,880 buy one item. You kind of want them to come in 486 00:29:53,880 --> 00:29:57,320 and buy lots of items. And so because you've got a low 487 00:29:57,320 --> 00:29:59,400 margin and you really want people to come in and buy a lot 488 00:29:59,400 --> 00:30:02,240 of stuff at once and especially if it costs you money to get 489 00:30:02,240 --> 00:30:03,520 them in the store in the 1st place. 490 00:30:03,880 --> 00:30:06,120 So you really want people to buy more stuff. 491 00:30:06,120 --> 00:30:09,480 So this is shows if your cross sell and up sell strategies are 492 00:30:09,480 --> 00:30:13,360 working and so you want a high average order value that 493 00:30:13,360 --> 00:30:15,840 indicates that customers are making larger purchases. 494 00:30:15,840 --> 00:30:17,400 So that might be relevant to you. 495 00:30:17,640 --> 00:30:20,080 It is relevant to some industries. 496 00:30:20,080 --> 00:30:25,840 I think that's really important and you know by the more volume 497 00:30:25,840 --> 00:30:27,920 for example, that's really important. 498 00:30:28,200 --> 00:30:29,440 Have you went to a petrol station? 499 00:30:29,440 --> 00:30:34,360 Everyone was in the queue buying $5 worth of petrol. 500 00:30:35,200 --> 00:30:37,480 You're clogging out the lines. You kind of really want to sell 501 00:30:37,480 --> 00:30:40,240 them a pie and you want them to fill their tanks up. 502 00:30:41,440 --> 00:30:44,040 So you know that could be something that affects your 503 00:30:44,040 --> 00:30:46,640 business. So that that's just something to 504 00:30:47,160 --> 00:30:53,200 keep in mind, that's more of a traditional value and sorry 505 00:30:53,200 --> 00:30:58,480 statistic. And #10, #10 should not be 506 00:31:00,720 --> 00:31:03,480 looked at lightly. And you can actually, this is 507 00:31:03,480 --> 00:31:07,640 actually really, really, really important statistics and the 508 00:31:07,640 --> 00:31:11,240 statistic is your MPs. So we call that your Net 509 00:31:11,320 --> 00:31:15,440 Promoter Score. OK, Net Promoter Score is a 510 00:31:15,440 --> 00:31:18,600 measure of customer loyalty. It's really, really important. 511 00:31:18,600 --> 00:31:22,440 It's a a calculation that's done in a certain way to really 512 00:31:22,440 --> 00:31:24,400 figure out who is advocating for you. 513 00:31:25,040 --> 00:31:27,800 OK. You calculate it by asking 514 00:31:27,800 --> 00:31:30,680 basically through surveys and our large marketing companies 515 00:31:30,680 --> 00:31:32,440 help with us. But you can do it just through 516 00:31:32,440 --> 00:31:34,960 it through a Google form if you want to. 517 00:31:35,760 --> 00:31:38,640 It is calculated by asking customers how likely they are to 518 00:31:38,640 --> 00:31:40,560 recommend your company to others. 519 00:31:41,000 --> 00:31:43,680 OK, so we talk about this because we talk about the fact 520 00:31:43,680 --> 00:31:46,640 that if people are promoting you, they love you. 521 00:31:46,640 --> 00:31:49,040 They might like your product and service, They might like the 522 00:31:49,040 --> 00:31:50,920 fact that they can buy their cat food from you. 523 00:31:51,160 --> 00:31:53,520 But if they say they are bloody awesome, and I'm telling my 524 00:31:53,520 --> 00:31:57,680 friends, that's showing you how your viral marketing is working. 525 00:31:58,040 --> 00:32:01,400 So a higher MPs indicates that customers are satisfied with you 526 00:32:02,320 --> 00:32:04,560 and they're all also likely to promote. 527 00:32:05,520 --> 00:32:07,720 So they're going to tell their friends and that means your 528 00:32:07,720 --> 00:32:10,000 marketing is great, but it also means that they're really loyal 529 00:32:10,000 --> 00:32:12,280 to you, right? They've got more than just the 530 00:32:12,280 --> 00:32:14,720 superfiction official connection with you. 531 00:32:15,200 --> 00:32:21,120 So usually sometimes when people go over and above with with 532 00:32:21,120 --> 00:32:24,120 their service or you know, they make a mistake that they create 533 00:32:24,120 --> 00:32:27,160 it really well, people go onto social media and they'll say, 534 00:32:27,160 --> 00:32:31,200 hey look, I dropped my car off at the panel beaters and it was 535 00:32:31,200 --> 00:32:34,240 a wreck and I was really worried about it and they did such a 536 00:32:34,240 --> 00:32:35,920 good job. And then when I went back, they, 537 00:32:36,120 --> 00:32:40,280 you know, they told me what they did and they made it easy and 538 00:32:40,280 --> 00:32:44,040 they gave me a car that I could borrow for free while my car was 539 00:32:44,040 --> 00:32:48,040 in the shop getting fixed. You may advocate for them and 540 00:32:48,040 --> 00:32:51,840 that's you can have have you then got asked about, you know, 541 00:32:51,840 --> 00:32:55,560 Mark's panel beating store and I said how likely would you be to 542 00:32:55,560 --> 00:32:57,600 recommend this company to your friends and family? 543 00:32:57,600 --> 00:33:01,440 And you were like very likely then that's a really good thing 544 00:33:01,440 --> 00:33:03,640 And if they had lots of customers who were like that, 545 00:33:03,640 --> 00:33:07,160 then their Net Promoter score would be really high and that's 546 00:33:07,960 --> 00:33:09,880 that's that's a really important measure. 547 00:33:10,560 --> 00:33:15,080 So they are 10 statistics that I think every business owner and 548 00:33:15,080 --> 00:33:19,600 definitely BA should know about. These stats provide valuable 549 00:33:19,600 --> 00:33:21,880 insights in terms of the performance of the company. 550 00:33:22,760 --> 00:33:26,120 It can help you make more informed decisions around your 551 00:33:26,120 --> 00:33:30,520 operations indicator, around profitability and how you can 552 00:33:30,520 --> 00:33:34,960 reach the strategic goals. So hope you enjoyed the show, It 553 00:33:34,960 --> 00:33:37,680 could be dry for some of you, but these are stats you should 554 00:33:37,680 --> 00:33:41,000 really know if you've heard something, an acronym or you've 555 00:33:41,000 --> 00:33:43,120 heard that, that you don't know about. 556 00:33:43,880 --> 00:33:47,080 Give it a bit of a Google, understand that there's some 557 00:33:47,080 --> 00:33:50,640 great material online and yeah, I'll see you next time.