If you want to increase the profits of its income and then revving up the engine marketing makes more sense, right? Well, wait a minute. Before you touch the throttle, you have the tools that show how the engine of marketing is doing, what we are talking about is called Marketing Performance Dashboard. A Marketing Performance Dashboard is a collection of statistical data or indicators that tell the health andperformance of your marketing strategies and the results they produce. They are also known as key performance indicators of indicators. Here are seven performance:
Marketing return on investment. This is a measure of how your financial investment in marketing working for you. Here's the basic formula:
Marketing ROI = Return / Investment Marketing = (Gross Margin - Marketing Investment) / MarketingInvestments
hurdle rate. threshold also referred to as ROI hurdle rate is the minimum level of return on marketing investments to reach even consider the market risk.
Obstacle = required rate of return / marketing budget = (Desired Gross Margin - Marketing Budget) / marketing budget
Depending on the expected level of risk (low, medium, high) of a marketing strategy or somephase of the strategic development of the business (growth, maturity, decline), you should do different thresholds of ROI.
Net present value (NPV). NPV compares the value of a dollar today is worth the dollar itself in the future. In other words, because of inflation, a dollar today is worth more U.S. dollars tomorrow. So if you measure the return on marketing investments for a sufficiently long period of time, the formula should be NPVaccount.
customer lifetime value (CLTV). This indicates that the monetary value of a customer is to you about the length of time he or she usually stays with you. It includes the value of business apply to you.
Average size of the transaction. Surprisingly, many companies do not understand why it is important to keep one. But one of the easiest ways to increase revenue is to implement strategies that the size of each customer purchase to increase.
Lyricssingle customer. Even large companies do not necessarily have a good handle on this. Look at the insurance companies. Count the number of policyholders insured? Or is it better to count the number of individual policies, although a person may hold more of the criteria?
Number of times a customer buys within a certain period. This is one of only three variables that you need if you want to increase (increase your income from the other two are averagetransaction size and number of customers only).
With all this information shared with you, I must offer a word of caution: When it comes to quantify the variables and measure the results of marketing strategies, there are a number of assumptions that needs to be done. There are also numerous limitations and pitfalls to collect, analyze and interpret data. But, used properly, these measures can mean the difference between a mediocre company(Or worse, a failed one) and a phenomenal success.
Business discoveries The Bottom Line: One of the commonly overlooked key to marketing success is to measure the effectiveness of your promotions and sales. Measurement, monitoring and analysis of marketing metrics gives the command and control over an important part of your business. This will help you achieve the best combination of promotional strategies to maximize revenue and findprofit. You'll also be able to respond quickly and effectively to market changes. After all, when it comes to fly your business jets, "we want the destination (goals) to achieve safe and successful. Bon voyage!
Related : Role Management Auto Insurance Knowledge
No comments:
Post a Comment