Marketing has 2 prime objectives – Create Brand Awareness and Produce Qualified Leads for the sales funnel. Creating Brand Awareness is outside of the Balanced Scorecard approach and measured by conducting a yearly Market Study.
Once our Marketing efforts has Created Brand Awareness, the focus of measurement is on moving Qualified Leads through the sales funnel:
Sales is a more complicated subject than it appears. Everybody knows it is all about revenue – but is it? Starting with measurement, what is the ultimate result you seek? Given the demands of daily business operations, most business owners focus on revenue in the door and not money at the end of the day - margin per sale.
We understand the emphasis of making money now but its pursuit masks some serious problems. How many of these sales were obtained by special deals, discounts, etc., efforts to close something today that leaves nothing in the cash box after paying the bills? Our experience is margin per sale drives the right long-term behavior from both the sales force and management. Both need to hold the line on cost of acquisition and maintain price integrity. It is only by measuring it can you get your arms around it; you can only manage what is measured.
There are three drivers or causes for achieving larger sales margins:
Service is not a random act of kindness, it is a function of sales. This is not a common belief in business and that leads to a real competitive advantage for the few who can execute. The real objective of service is to transform satisfaction into enthusiasm for your company and offer, and to grow the amount of customer budget you own. Do you currently have 100% of their budget for the products and services you sell? Your Service relationship with existing customers will determine how much of their business is kept in house.
There are three drivers or causes for achieving Top of Mind (their first choice) and creating customer loyalty:
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