Competitive Advantage • marketing • SALES • OPERATIONS • differentiation
Measure the Right Things
85% Don’t Measure What Customers Value Most
Nearly every successful organization has developed a set of Key Performance Indicators (KPIs). KPIs most frequently address internal efficiencies and profitability, and can give an excellent snapshot of overall organizational performance. Your organization’s KPIs are important internally, but you probably wouldn’t use them as the foundation of your marketing/sales content. Rather, your organization needs a set of indicators that will inform you when you are doing well, or doing poorly at the items that drive buying behavior. If your indicators show peak performance, you can leverage that to gain more business, or command higher prices. If your indicators show poorer performance on what buyers value most, then your organization may lose business, or lower prices to keep current business.
Smart Advantage calls the indicators that matter most to your buyers Customer Relevant Indicators, or CRIs. These are the indicators that will let leaders know if business is positioned for growth. Additionally, because CRIs measure what buyers care about most (revealed through double blind market research), they become the foundation of your sales/marketing content.
Don’t the mistake so many organizations make and assume that good KPI data will translate into business growth. KPIs are a trailing indicator. CRIs, on the other hand, are predictive indicators, and should be fundamental to every organization.
Contact Smart Advantage to learn how to develop, measure, and benefit from CRIs.