Posts Tagged ‘Accountability’

What clearly and simply explains the term metrics!

This is essential before you actually go into the details of your business and marketing potential. Metrics is correctly defined as a measurement tool in judging performance and quality of a process. In addition, it also involves identifying the problems that occur in the process. A good metric is also synonymous with generating a Quality Lead.

There are separate uniquely classified metrics for businesses and specifically sales. A business metric would allow you to gauge the company’s performance, revenues, Return on Investment (ROI), and employee or customer performance. On the other hand, a critical sales metric would include, identifying best salesperson and checking out which product lines have more sales. Most importantly, sales metrics also helps in evaluating a true figure for your Return on Investment (ROI).

When you create something for marketing purposes, you should delineate a set of goals that will help you increase sales and business profits. You know that even the most innovative marketing metrics fail when you get out there with an undefined market for a product or a service. Have you ever thought why it happens, or why it should happen at all!

There are some basic principles that go with marketing. It’s similar to making curry. If you ad the right ingredients in the right proportion, it’s a pleasurable experience, or else you’d be throwing it in the trash. Keep these three essential principles in mind and make a calculated move forward.

Principle -1 – Remain CONNECTED! While developing a marketing strategy keep your focus on the things that are essential to fulfilling your goals and objectives.

Principle -2 – Do the ACTION – Procrastination is something that makes the salesperson fall behind in achieving sales targets. A good salesperson is the one who remains focused, and learns from mistakes. Boost your inner self and get into action!

Principle -3 – Be PREDICTABLE – Yes! When you launch any product/service in the market; study the cause and effect relationships under prevailing market conditions to understand what factors drive sales.

Now, that you have got these three principles in your mind, it is important to set goals straight forward. You don’t need to carry forward in haste.

The Five Sales Metrics

• Lead Generation – A lead is generated on the basis of the awareness of the product/service and how much interest the product/service can meet the demands in the market with requests for information.

• Query Generation – Here, customers upon seeing the product/service would come to inquire about your product and/or services. A query generation metric clearly showcases that the customer is interested in the product, and would like to know more about the product.

• Churn Rate – This shows the amount of customers going buying your product or service. Any change in market conditions can also increase or decrease the churn rate where sales might increase or decrease accordingly.

• Customer Life Cycle – Here it is to be seen what a customer does as he or she progresses through the stages of considering, purchasing, using and finally maintaining the loyalty to the product. If a maximum number of customers have finally developed a high sense of loyalty equating to consistent sales revenues, it means that marketing efforts were successful.

• RFM or Recency, Frequency, Monetary – This makes a firm analysis on the amount of customers who would purchase product, based on the Recency factor. The analysis essentially counts on the popular maxim – “80% of your business comes from 20% of your customers.”

The very importance of metrics cannot be undermined in relation to marketing strategies and evaluating multi-channel marketing activities. Whether it is an online marketing campaign or any offline marketing strategy, you need to analyze and examine the key metrics, which can help you develop and put into action the relevant corrective marketing initiatives to promote and sell your products and services.

Therefore, the role of marketing metrics is sensible for producing the blue print of a commercially viable cost effective marketing campaign, while providing an effective means to measure expense versus returns.

But, metrics themselves cannot yield good results unless you have your goals and objectives correctly aligned with your marketing activities. You need to think thoroughly through the questions that need to be measureme and with what tools will help influence your business and marketing goals and objectives in a positive manner.

Remember! You have to set your goals and objectives separately and it is here the success of a meticulous metric system lies.

Therefore, while summing the power of metrics for making calculated business strategies, you should have the following points running in through your mind:

• Metrics help in obtaining potent business results.

• Metrics help in gaining good business results.

• Metrics is a worthy process that helps in calibrating any kind of marketing strategy accurately, consistently and most importantly, cost effectively.

For marketing personnel, it is extremely important to write down and conform strictly to some diagnostic methods for fine tuning their business and marketing strategies successfully, even in the most competitive of environments. Metrics measure the different stages in marketing. There are different metric tools designed for infant early stages of marketing, adolescent stages of marketing development, and finally maturation of marketing development.

The Overall crux about the use of marketing metrics is that you need to make it more target oriented after assessing your business, organizational, and marketing goals associated with your defined objectives. What’s more, there are several other factors that are worth considering while establishing the purpose of marketing metrics. These include:

• How do you make the balance between offline and online marketing campaigns?

• Do you have a niche marketing objective designed for yourself?

• Are you ready to accept the markets challenges?

• Do you know primary and secondary competitive advantages in your business?

• Are you aware about the ongoing internal and external market forces?

• What are the industry benchmarks for the products that you intend to market?

Whether it is business metrics, sales metrics, or marketing metrics, you need to follow metrics stringently. Khanstellation Group, Inc. (KGI) has the ability and the intellect to design metrics useful for sales, marketing or business motives. At KGI, we undertake risk free management decisions, and mission-critical development processes to give our clients ideally the best business solutions.