- Define Objectives and Performance Targets. – Such as sales objectives, target profit margins, or success at signing up new customers.
- Understand the Organisation’s Strengths and Weaknesses: Use the metrics to find the strengths that provide sustainable competitive advantage.
- Define the Metrics Needed to Measure Organisational Performance: Develop a list of factors that are important in your industry. For example sales growth; market share; distribution methods; sales force size, effectiveness and training; advertising budget and effectiveness; inventory levels, delivery time; product quality; customer retention rates
- Benchmark Current Status. Once metrics are established the organisation needs to measure them. This is important to determine exactly how the business is doing.
- Develop Methods to Capture, Organise, Monitor and Report metrics: Create a process for tracking and reporting all relevant data. (See Marketing Intelligence and the MIS in Chapter 10)
- Compare Performance to Key Competition and other Industry Benchmarks: Rate your company on your developed list of metrics in comparison to your competitors
- Conduct Regular Research: Get specific information about your customers and prospects
- Communicate metrics with key staff. – Enabling them to make better and even help improve the metrics.
- Review the information/results from metrics and make decisions. With your metrics in place, you have greater insight into which strategies work and which don’t. Take steps to improve results.
- Focus on Customer Relationships and Retention: Superior customer relationship levels and retention. Customer retention is good business management as getting new customers is five times more expensive than retaining current ones. Work on core value and service attributes to build customer loyalty
- Measure Marketing Effectiveness: Effective measurement lays the groundwork for future plans, so keeping track of results is the only way to improve business development efforts. Marketing results need to be measured primarily in sales (dollars or units), market share, store traffic, number of inquiries, and reduced complaint rates. Tracking can also be based on surveys that assess customer perceptions.
- Track Employee Motivation: Having employees who are motivated is critical to your organisations success. Track the effectiveness of retention levels as well as employee satisfaction and performance.
- Apply the Information: Analyse the intelligence you’ve collected, draw conclusions and make recommendations based on it. Develop a plan for seeking out opportunities to demonstrate your company’s strengths. If weaknesses are critical drawbacks to your company’s success, develop a plan for overcoming them.
- Promote successes. When your metrics improve, let your staff know and reward everybody that helped to make things better.