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Winning hearts and minds

Your top customers by Profit or Life Time Value

Sounds simple but identify your customers who drive the most profit for your business. Rank them and understand how impactful they are as individuals or as a segment for your business.

Ranking these customers from highest to lowest by Profit or Life Time Value lets you see which individuals or groups drive an outsized portion of your business results.  When you can look at a single list and see your main customers you have the power to identify the unique characteristics of this group and work hard to attract more.  Is it who they are, where they live, or what they buy?

Knowing that answer can be more valuable than just making the sale. By focusing your customer service, marketing, promotions, and sales offers, you can build the long-term value with these customers and find more existing and new customers who share the same characteristics.

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Returning vs New Customers

Do you have a good balance of returning vs new customers? How well you are maintaining your customer relationships over time?  How much do new customers compared to your returning customer spend with you?

The returning vs new customer metric can help you to compare the value an average new customer brings to your business vs a returning customer over the lifetime of your relationship. It’s worth considering with this metric the costs associated of attracting new customers compared to that of existing customers.

Use this metric to monitor the split over time or see how the business generated between the two groups varies over time. It can be an early indication of longer term customers views towards your organisation and their likely purchase intentions. For a product that supports repeat customers more so than one-time buyers, this can be the difference between struggling and thriving business.

Website Performance Metrics – benchmark against your competitor

You can track the performance of competitor websites by gathering data from sites such as SEMRush, Pingdom, Similarweb, and Alexa. Some important metrics to consider include:

  • Website visits: The average number of visitors per month can easily size up how popular you and your competitors are.
  • Bounce rate and site speed: Correlate these two metrics. That’s how you can determine whether you need to make changes to your own website.
  • Geographic sources of traffic: Look at what percentage of visitors comes from what regions. That’s critical if your company plans to expand beyond its current geographical presence. It will also allow you to spot global opportunities by finding gaps in distribution when looking at all competitors.
  • Website traffic by channel: See where your competitors choose to spend their time and money. For example, a company that has a higher percentage of visitors from email probably has a large prospect database. If you look at their website, you can examine how they collect data for their email marketing programs. Are they getting website visitors to sign up for newsletters or special offers? If not, they may be purchasing prospect data from a data provider. You can adjust your own strategy to ramp up marketing campaigns in areas where your competitors are not actively engaging prospects, or to increase spending in areas where they are outperforming you.Based on an article from Anna Kayfitz Read the full article at: http://www.marketingprofs.com/articles/2016/29418/how-to-benchmark-your-marketing-performance-against-your-competitions#ixzz43XZWUORv

Net Promoter Score

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Net Promoter or Net Promoter Score (NPS) is a customer loyalty metric. It can be used to gauge the loyalty of a firm’s customer relationships and serve as an alternative to traditional customer satisfaction research.

Many senior managers care about the Net Promoter Score because they want to guage the loyalty of their customers. What’s more, there’s a strong correlation between a high Net Promoter Score and company growth. NPS can be as low as −100 (everybody is a detractor) or as high as +100 (everybody is a promoter). An NPS that is positive (i.e., higher than zero) is felt to be good, and an NPS of +50 is excellent.

Surveys provide a great tool for tracking the Net Promoter Score: You can ask respondents how likely they are to recommend a company to a friend or colleague, then ask them to score their satisfaction with your company between zero and 10.

To calculate your NPS work out the percentage of responses that scored your company between seven and 10, then zero and six. Subtract the zero-to-six percentage from the seven-to-10 percentage, and you have your Net Promoter Score.

You can also use the same survey to ask customers how you can improve. Your senior managers will be impressed with the insights you can provide with the data gathered by the Net Promoter Score.

Measure what can be measured, and make measurable what cannot be measured.  Galileo Galilei

 

Key metric – Willingness to recommend

Willingness to recommend is a metric related to customer satisfaction.

When a customer is satisfied with a product they might recommend it to friends, relatives and colleagues. This willingness to recommend metric can be a powerful marketing advantage and is normally expressed as a percentage of surveyed customers who indicate that they would recommend a brand to friends.

Key metric – Market penetration

Two key measures of a product’s popularity are market penetration rate and penetration share.

Market penetration rate is the number of people who buy a specific brand or a category of goods at least once in a given period, divided by the size of the relevant market population. A brand’s penetration share, in contrast to penetration rate, is determined by comparing that brand’s customer population to the number of customers for its category in the relevant market as a whole. Here again, to be considered a customer, one must have purchased the brand or category at least once during the period.

Often, managers must decide whether to seek sales growth by acquiring existing category users from their competitors or by expanding the total population of category users, attracting new customers to the market. Penetration metrics help indicate which of these strategies would be most appropriate and help managers to monitor their success. These equations can also be calculated for usage instead of purchase.

The Right Brain vs. Left Brain of Marketers Infographic by Marketo

Seven questions you should be asking your marketing department

As CEO, what are the questions you should be asking the marketing department to get a better handle on how marketing is impacting areas you are most concerned with, like sales? Continue reading “Seven questions you should be asking your marketing department”

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