For every business, whatever their shape or size, measuring success is key. From multinational brands to small businesses and start-ups, every business needs to be able to define success.
It is something as an agency we often get asked about – “How can we measure the success of what you do? How can we justify the cost and define the return on investment?”
As a business, you need to consider both the factors relating to success as well as how you will measure them. There are many factors you can measure, including:
- Financial metrics – turnover, sales, profit, cost of sales
- Customer metrics – brand awareness, customer satisfaction
- New customers won (or lost) – both in number and in value
- Projects delivered, or new products launched
- New team members recruited
- Perhaps your Google or Alexa page ranking?
- Number of people reached with your activity
- % capacity met in terms of your time/work hours available
The metrics you choose should all be tied in to your company objectives. Is innovation a key part of your business strategy? In which case you need to measure it. Are you trying to grow your share in a declining or static market? In which case you need to be reviewing customers kept and won, and how to keep your costs down. Everyone wants to keep their customers happy, but do you have the budget or time to actually commission the research to identify if they are satisfied or not?
Measuring success is a vital part of your ongoing business management. It can be a reason to feel motivated – to be positive, celebrate and look forward to the future. Or it can be an important push to reassess your business and why you are not achieving your objectives, allowing you to refocus when needed.
Most businesses will employ a number of metrics and at 4 C Marketing we certainly use a snapshot of our business including sales, profit as well as client satisfaction and new clients won. We aim to set success factors for every piece of work we do and to demonstrate the impact our projects can have on our clients’ businesses.
Most of all, it doesn’t always matter how you measure success – just that you do.