what performance indicators do you use?

[robsoo]

Hi

I work for a smallish firm (65 people) and am trying to decide what indicators I should use to measure my own performance as marketing manager.

The obvious ones are number of leads generated and increase in turnover, but I was wondering if anyone else had any other suggestions?

Thanks

 

[SFD]

Marketing exenditure
Conversions - are you attracting the right enquiries?
Profit
ROI

 

[fisicx]

IIP interviews competed on time, H&S surveys compete, quality procedures assessed, TNA completed, accounts audited, production costs reduced.

There's a few ideas pour vous.

 

[Russ Hagger]

Each company should have its own KPIs, as they are very much individual things.Therefore, each function/person should have theirs.

Yours would very much depend on the specifics of your function.

Having said that, in your case I would first look at what your company has asked you to do - have they not given you a set of targets? The targets would be the basis for your KPIs.

Some ideas for marketing KPIs are (apart from the ones already mentioned):

market share
new product development
% of new customers
marketing budget ratio
customer loyalty
average revenue per customer
debtor levels / payment delinquency levels
customer profitablilty

The key to any KPI is that it is measurable, and that it can be influenced by the people being measured.

 

[amv1981]

everyone here has suggested what I was thinking... so I'd just follow their suggestions.

 

[Tw Installations]

Each company should have its own KPIs, as they are very much individual things.Therefore, each function/person should have theirs.

Yours would very much depend on the specifics of your function.

Having said that, in your case I would first look at what your company has asked you to do - have they not given you a set of targets? The targets would be the basis for your KPIs.

Some ideas for marketing KPIs are (apart from the ones already mentioned):

market share
new product development
% of new customers
marketing budget ratio
customer loyalty
average revenue per customer
debtor levels / payment delinquency levels
customer profitablilty

The key to any KPI is that it is measurable, and that it can be influenced by the people being measured.

Some good suggestions above:

Another couple might be

Average sale per customer
Average cost to get a new customer
Amount of repeat business via customers

You could also measure each area of marketing and break it up, ie THE INTERNET - amount of new enquires via website, amount of conversions via website and fine tune everything to find exactly what is working and what is not

Tommy

 

[smartKPIs]

Hi robsoo ,

Speaking of KPI in marketing, smartKPIs.com may be a good resource for you. It contains a user friendly library of well-documented performance measures. At the moment it lists over 3300 KPI examples, grouped in 73 functional areas, as well as 83 industries and sub-categories.

KPI examples for marketing are available.

They include but not limited to:
% Net client ratio
% Account expansion
# Brand image index

In addition to examples of performance measures, smartKPIs.com also contains a catalogue of performance reports that illustrate the use of KPIs in practice.

Examples of such reports for marketing are available.

The website is updated daily with new content, so check it from time to time for additional content.

Please note that while examples of performance measures are useful to inform decisions, each performance measure needs to be selected and customized based on the objectives and priorities of each organisation.

Best regards,

Anita Liang
Research Analyst
smartKPIs.com

 

[macchior]

Hi,

Deciding performance indicators is not as easy as people think. Alot of thought needs to go into it.

Commonly, people think in terms of "sales per month" or "conversions" or "X achieved in hours worked" etc.

But, as an example, a "tweak a day" (technically, called an innovation) to your processes etc can have a greater long-term impact.

Your point of view depends on whether you are a business owner (want to grow the business) or an employee (want to gain a bonus/commission, which is sales based). But even if you're an employee, you benefit by thinking the way employers do (you're focusing on your own long term growth).

There are models (Balance Scorecard etc) that allow you to set targets according to various dimensions. Innovation can be process, paradigm, positioning etc based. You can analyse stakeholders in various ways.

In essence, you need to get your head around the models that are core of an MBA. The cheapest way I have come across of doing that is websites such as clickok.org or netmba.com.

Good Luck.

 

[directmarketingadvice]

Some good suggestions above:

Another couple might be

Average sale per customer
Average cost to get a new customer
Amount of repeat business via customers

The 1st and 3rd of those are important, but often overlooked.

(Businesses spend too much time getting new customers, but not enough time maximising the profit from those customers.)

The middle one - "Average cost to get a new customer" - is a really important number to know. But, as Tommy said, you need to break it down by source.

That's because, if you lump everything together, decreasing it may be a bad idea. For example, if you're making £100 per sale, what would you rather have:

500 new customers that cost £40 to get. (Profit £30,000)

Or

1000 new customers that cost £50 to get. (Profit £50,000)

Steve

 

[Mik_Oakley]

Hiya,

I've worked with performance management systems for years (and now work for a business which provides them).

Before you get too caught up in KPI's, you need to take a step back. It's all well and good measuring performance, but you need to put the KPI's in the context of your long and mid term business plans. Many KPI's can be focussed on and direct the business on a route that is not part of the plan.

By putting in place a clear business plan (where you want to go), you can then create detailed delivery plans (how you want to get there). KPI's then often come in as a way of tracking progress towards these goals.

So the business plan objectives along with the implementation / delivery plans will often help drive what things you need to monitor to see whether or not you are on the right track.

Also, you need to make sure you look at a balanced set of KPI's across the business. While I understand you are responsible for a specific area, and therefore will focus on your KPI's, without taking a full company approach you can often end up picking KPI's that, if you follow, could impact negatively on other areas of the business.

Balanced scorecards are a way of making sure all aspects of the business are considered and keep your KPI's all pulling in the same direction.

Anyhow, just my 2p's worth.

Message me if you wanna talk about this offline.

cheers