My Essential Non-Financial Metrics to Manage
Last week I told you I wanted to get you focused on metrics. Being focused helps your overall strategy and if you've got a good strategy I imagine you're all over these metrics and you're actively pursuing them.
Ok, let's dive in:
Brand awareness is often measured by asking. Brand equity is also sometimes estimated by subtracting all tangible assets from a business. Being left with intangibles is a great way to value brand awareness.
Test-drives or Demonstrations
Test drives are more commonly called demonstrations, or a trial in your modern subscription business.
How many are in the trial phase? Or recently had a demo and are considering purchasing?
Who has completely left the business or perhaps just the product if you want to be more granular.
This is usually commonly known as ‘The Loyalty Metric’.
A great way to find out who is churning is through doing exploratory data analysis, you want to find trends of users leaving your business early and do it cheaply.
Areas to start analysis are commonly, gender, location, financial status etc.
Customer Satisfaction or Net Promoter Score
Commonly referred to as the NPS (Net Promoter Score), it is the most common one being used at the moment. It’s a good gauge to manage. But at times it feels more art than science.
Some customers feel differently to a product company to say a services business like an accounting firm. Just a very product-centric metric to be wary of in my opinion. But quite useful in most of the businesses I've worked with.
Some ways to get value out NPS is to take the feedback and process the language and improvement on site copy, speaking the pains back to the pains the initial customers had up front before purchasing.
This metric measures internal effectiveness of a campaign and can be linked to campaign cost.
In other words this is the essential marketing campaign performance metric.
Take rate is calculated by number of accepted offers / number of contacts or impressions.
Hope that was helpful. Next week I'll jump in and do essential financial metrics and you'll probably want that considering how many of you ask me about money.