Is your digital marketing agency performing well? How was your performance this quarter compared to last quarter — or this week compared to last week?
If you don’t know how to respond to these questions or you don’t have the data to back up your answers, you’ll have trouble improving your operational efficiency and scaling your business.
At the Seven Figure Agency, our digital marketing agency coaches strongly believe in the power of the scorecard model to track agency performance. With this approach, you’ll always have access to real-time insights into your business health, enabling you to make strategic decisions and setting you up for scalable growth.
What Is the Scorecard Model?
The entrepreneurial operating system (EOS) scorecard model tracks key performance indicators (KPIs) across different aspects of your digital marketing agency. It provides a detailed, real-time overview of your agency’s performance through an organized scorecard or spreadsheet.
Updating your scorecard across various categories and goals weekly lets you:
- Easily compare performance from week to week to determine your overall scalability
- Stay up to date on your business’s health through real-time, insightful data
- Hold your team accountable for performance by clearly indicating which metrics team members are responsible for
- Facilitate problem-solving by highlighting areas where your agency is off track
How To Use the Scorecard Model for Your Agency’s Growth
The scorecard is a simple yet powerful tool your agency can leverage today. Here’s how to measure your core processes with this strategy.
1. Create Departmental Scorecards
Each department within your digital marketing agency should have its scorecard, which you then consolidate into one master spreadsheet each week. Begin by assigning a “scorecard keeper” within each department to update their respective card and present it in your weekly discussion.
How you structure your scorecards is completely up to you. Some agency owners use simple Excel sheets with column headings for each metric and row labels for each week. Others use dedicated data tracking tools to configure metrics into user-friendly charts and graphs.
What matters more are the metrics you track in your scorecards.
2. Choose the Right Metrics
Next, select the metrics or measures to include in each departmental scorecard. You want these spreadsheets to provide detailed, insightful data about your agency. However, you don’t want to waste your team members’ time by asking them to track metrics that don’t portray your performance well.
Here are a few metrics we recommend including in each departmental scorecard to get you started:
- Marketing metrics: Number of opt-ins, scheduled appointments with prospects, average cost per lead, average cost to acquire a customer
- Sales metrics: Number of strategy sessions held, number of new clients onboarded, closing ratio, new monthly recurring revenue (MRR) generated
- Account management metrics: Number of clients churned, revenue lost to churn, monthly retention rate, percentage of clients contacted, percentage of clients in a “red” status
3. Update Scorecards Weekly
You and your team member assignments should update scorecards each week to track weekly goals and fine-tune strategies. Set a designated day, like Friday or Monday, to input the weekly data into the scorecards. Test and adjust your data tracking each week to ensure accuracy.
Once your team members know which KPIs they are responsible for, they can determine the best ways to keep track of these data points, such as by keeping a tally throughout the week or making a mini daily scorecard.
4. Use Scorecard Data in Strategic Decision Making
Tracking data with the scorecard model is only the first step. What you do with that data is even more pivotal.
Your scorecard should become the foundation of strategic decision making within your agency. Refer to your scorecard frequently and stay in tune with your data trends. Making calculated decisions with your KPIs in mind helps you position your agency in the market, transition from a stable to a scalable agency, and boost your bottom line.
Seven Figure Agency: Your Digital Marketing Mentors
At the Seven Figure Agency, we’re passionate about helping digital marketing agencies reach their full potential through proven, step-by-step strategies and personalized mentorship. We can help you implement the scorecard model and provide tailored support through various other processes, like building rapport with your clients, incorporating modern technology into your strategies, and breaking that seven-figure annual revenue mark.
Schedule a strategy call today to learn more about our agency owner mentorship program. Then check out the Seven Figure Agency podcast for free resources for agency owners.
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