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INSIGHTS & JOY
A business newsletter with Pizzazz! "We help leaders become better marketersusing a holistic business approach!"
Marketing and sales performance can and should be measured, trends identified, and future objectives established. Many companies measure the effectiveness of their marketing and sales efforts, others do not. Some of the metrics used to assess marketing effectiveness become clouded because other functions significantly impact part of the equation. This month, I suggest ten ways to assess marketing and sales effectiveness that companies, large or small, can usually implement. In each case, marketing controls all or most of the equation and that makes them useful benchmarks in determining the marketing and sales team's performance. I would be delighted to hear about your assessment benchmarks and why they are useful to you. Subscribe directly by e-mail to rpmorgan@morganmarketingsolutions.com and writing "subscribe" in the subject box. Check our web site for: $ Million Marketing Tips, Insights & Joy Archive, Speaker's Bureau, and our Article Library! www.morganmarketingsolutions.comIN THIS ISSUETen ways to measure marketing and sales resultsSmiles make the day!$ Million Marketing TipsAmazing facts...Marketing Facets - The Market Focused
Guide to Company Analysis
Ten ways to measure marketing and sales results There are innumerable ways to measure the results of an
organization's sales and marketing efforts. Sometimes, gross profit is used as a
benchmark. Unfortunately, other functions out of marketing's control contribute
significantly to this measurement. For example, purchasing's effectiveness in
buying raw materials and production's plant labor efficiency impact
profitability. Other common measures might include the impact of distribution
centers, service centers, or credit and administrative departments. Benchmarks
that include multiple functions tend to cloud the real performance of a
marketing and sales function.
In other cases, marketing does control, to
a large extent, a measurable benchmark. Below, I suggest ten metrics that
most businesses, small or large, can use to assess the effectiveness of
marketing and sales efforts. You can apply them to the entire company, a region
or division, or an individual territory. In a perfect world, a marketing
executive would set up the means to measure each level, identifying
individual contributions and problem spots. Of course, there are many
other benchmarks, some specific to a particular industry, that can be used.
Determine which benchmarks are critical to the specific case, then measure and
analyze results against goals.
The key thought is, marketing and sales
performance can and should be measured, trends identified, and future objectives
established.
1. Overall growth in units and revenues at
significant existing accounts. Each company must set their own definition
of 'significant.'
2. Number of individual products sold to
significant existing accounts. Determine the penetration into existing accounts.
Helps identify latent opportunities.
3. Number of significant new accounts
acquired during the period. New accounts are vital to offset the inevitable
attrition from the existing customer base.
4. Number of individual items on each
quotation. Multiple items indicate the pursuit of sales of the full lineup of
products and services.
5. Percentage of successful quotations.
Indicates the effectiveness of the entire marketing and sales
process.
6. Additions and deletions from the Top
Account List. Indicates major account trends and customer turnover issues to
be investigated.
7. Customer lifetime revenue contribution.
Indicates customer life cycle, positive impact of customer retention, loyalty,
sales effectiveness.
8. Number of new products or services
added in the period. Indicates marketing effectiveness in keeping the company
current in the marketplace.
9. Market share trend. An important metric
that compares the company's effectiveness relative to that of
competition.
10. Total marketing and sales cost as a
percentage of revenue. A good overall indicator of productivity. Cost as a
percentage of revenue should trend downward over time, showing the effects of
stronger relationships and better understanding of the industry, markets,
and individual strategies and
tactics.
Smiles make the
day! "He's tighter than the bark on a tree." (Someone who's not very generous) "She thinks the sun comes up just to hear her crow." (A conceited lady) "This ain't his first rodeo." (He's 'been around') "They ate supper before saying grace." (About a couple living in sin) "He's all hat, but no cattle." (About a braggart) "He's riding a gravy train with biscuit wheels." (He's doing quite well financially) "We howdied, but we ain't shook yet." (A passing acquaintance) "She's nothin' I'd want to put my saddle on." (An unattractive lady) "He's a tamale short of a Mexican plate lunch." (He's not very smart) "Her cornbread ain't quite cooked in the middle." (She's not very smart) "He couldn't hit a bull in the butt with a banjo." (He's really drunk) And remember, never ask a man if he's from Texas. If he is, he'll tell you. If he's ain't, there's no need to embarrass him! $ Million Marketing Tips TIP: Quit trying to improve just a
little on what has been done before; start from scratch and build what customers
will rave about!
TIP: In many cases, you must create
the market, overcome apathy or inertia, and get your prospect to act. If you are
the one to spur action, you get the business!
Amazing facts! Take one million cloud droplets and squish them
together - what do you get? One drop of rain.
It takes three feet of sugar cane to produce a
lump of sugar!
The sky is actually black. Dust particles and droplets
of moisture in our air reflect the sun's rays and make it appear
blue.
Strong coffee will not help you sober up. Alcohol in
your blood makes you tipsy and no amount of coffee will remove it. But time is
on your side!
In spite of years of schooling, about 25% of Americans
aren't sure if the Earth travels around the Sun, or vice versa.
A 7.0 magnitude earthquake is 900 times as powerful as
a 5.0 earthquake!
Marketing Facets - The Market-focused Guide to Company Analysis I have recently completed Marketing Facets - The Market-focused Guide to Company Analysis. Marketing Facets is a practical resource for those involved in determining the current health of a company and gauging its future prospects. I designed my 103-page guidebook to be a supplement to other evaluation procedures and the highly detailed information normally gathered during a thorough due diligence or business valuation process. The workbook takes a holistic approach, assembling facts and management assumptions in key areas for analysis and conclusions. Marketing Facets is a valuable resource to private investment fund managers, individual investors, venture capital specialists, investment banks, and valuation specialists. Marketing Facets can also serve as a guide for C-level executives who wish to perform their own company analysis as part of normal business planning, or in advance of efforts to refinance, acquire or divest. Marketing Facets is available in electronic form via the Internet, on CD/ROM, or in print with a ring binder.> Electronic in MS Word .doc or Adobe .pdf format via the
Internet @ $79.95
> CD/ROM format @ $85.95 including U.S. shipping and handling
> Ring binder version and CD/ROM combo @ $99.95 including U.S.
shipping and handling
Consulting is also available.
Please contact me for additional information.
Telephone: 972.931.7993 Fax 972.931.0542 rpmorgan@morganmarketingsolutions.com. P.S. Ninety-five percent of our engagements originate as a referral from helpful people like you! If you know someone who:> Wants to develop a more productive
marketing program, or
> Needs help building and implementing an
effective operational business plan,
I would appreciate the opportunity to discuss the situation with you. Our ideal client is a business owner or CEO between 30 and 60+ years old. Usually with a financial, engineering, or production background. Who is often impatient, and interested in improving company performance. Comes alive when you ask, "How's business?" He, or she, is practical but also enjoys the finer things in life.So, you may see my ideal client driving a Lexus or SUV to Neiman Marcus...and to Sam's Club. Who do you know that fits this description? A client
speaks: "I have thoroughly
enjoyed working with you to address our marketing effort during the last few
years. In my opinion, we could not have found anyone more effective than you
have been." To unsubscribe, e-mail to rpmorgan@morganmarketingsolutions.com and write "unsubscribe" in the subject box. ©2005 Morgan Marketing Solutions, Inc. All rights reserved. Other distribution permitted with proper attribution.
Richard P. Morgan CMC Telephone 972.931.7993 fax 972.931.0542 www.morganmarketingsolutions.com Author,
Marketing Facets - The Market-focused Guide to Company
Analysis
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