Key Metrics allow you to track and evaluate the success of a specific business process.
You’ve thought about your business, and the solutions that you deliver for your customers problems. Now it might come in the form of a product or service. But at the end of the day it should be fulfilling a very basic human need. Now what you want to do is start thinking about what the Key Metrics are that you’re going to use to measure your business success, as you deliver the solutions.
Measure your progress
What activities drive your product usage? Which statistics indicate how well your company is doing? What numbers best underline opportunity for development?
Key Metrics allow you to track and evaluate the success of a specific business process. A Key Metric could be daily visitors to your site, the number of company emails opened by consumers per hour or the monthly sales of a specific feature. Every sector of a business has specific metrics that should be monitored. Fill in this section of your Revenue Roadmap with the metrics that are most critical to the problems you’re trying to solve.
Pro Tip: The most useful metrics provide a great deal of insight and spur short-term, low-cost action.
Your Key Metrics could be any number of things. You might think it’s important that leads and sales, which drives revenue, is the be all and end all of success. For others like some of my clients, it’s about how much profit they can actually give away to noble causes. Now you might think, “Well that’s crazy. That’s not why I started a business.” And that’s OK because your key metrics are your key metrics. The key thing to remember here is that you are designing and building a business that is specific to what you would like to achieve.
So when it comes to your Sales and Marketing think about what the key metrics are that determine success. It’s very hard to know when you’ve arrived if you don’t know what that destination looks like.
A key part of creating value for your customers, which drives revenue growth, is knowing what the alternatives are to what you’re offering.
Your biggest competitor: “Doing nothing”
So you’re running a business and you know that your customers have a particular problem, or that you can solve a particular list of problems. The next thing you want to do is to find out what the existing alternatives are for your solution. It may not necessarily even be a competitive product. It may actually be that your prospects do nothing at all. It may be that an existing alternative is to not do anything because they are too scared of making the mistake of getting the wrong product, or getting the wrong service. So your would-be customer delays the decision-making process even longer.
An existing alternative might be a competitive product, in which case you need to figure out, “Well what is it that I solve that my competitor doesn’t solve?” If you’re a Business-to-Business (B2B) company selling tasks that are outsourced to you, an existing alternative could actually be your customers hiring an internal team to do it instead. So you might actually be competing against an internal team. In this case you’ll want to frame your solution in a way that explains the benefits of using an external team versus an internal team.
The point is, don’t just think about competitive products. Also think about some of the excuses and the things that people do, sometimes even just out of human nature, that would replace your solution in their problem context – even if it means they’re doing nothing.
So what are the existing alternatives?
How else can your customers address their problems? What products or services already exist as alternatives to yours? This section is where you identify competition. Who are you up against?
Research your competition using multiple methods. Ask target customers about other products or services they’ve explored or used. Utilise search engines, social media and trade publications to become an authority on your industry.