While many metrics help marketers determine the success of things like messaging, lead campaigns, and brand awareness there is one all-important metric that I believe, if captured, is the key to unraveling every marketing challenge that you face.
The measurement that matters over all others is something I’ve begun calling the Customer Success Quotient (CSQ). In math, a quotient is derived through division. In this case the two numbers or concepts that I want to suggest we measure and divide are 1) the value you create over 2) the cost the charge. The hope or course is that the answer is always a positive one. In other words, you bring more in results than you charge to create them.
I think most people would initially say they do, but I wonder. If you’re not focused on quantifying the results you create with your customers, it’s hard to be certain they are actually receiving or appreciating them.
From a practical standpoint, I believe using and communicating the CSQ as a key marketing indicator in your business does some very powerful things long-term.
1) It helps your customers understand the value they are actually receiving. Nothing resells a customer and stimulates referrals like cold hard results. Sometimes our customers have short memories, by routinely demonstrating and quantifying the value they receive you keep results top of mind.
2) It helps you and your staff focus on the one thing that really matters – your customer’s results. If every transaction and engagement has a built in results meter, you can bet people will stay focused on driving the needle as high as possible.
3) It creates a wonderfully compelling marketing story (assuming results are high). When you can capture and communicate specific results achieved on behalf of your customers, you can offer prospects the kind of proof they need to purchase confidently.
4) It creates the case for dramatically increasing what your charge for your products and services. When you can align the true value of what you do with what you charge then you will unlock the secret to tremendous profits. In fact, this is the key to boldly exploring “fee for results” pricing that can open the door to an entirely new business model for you.
In Bob Burg’s wonderful book the Go-Giver he introduces several laws of business. The first is the Law of Value – Give more value than you cost. While I agree wholeheartedly with this notion there’s no reason that quotient can’t be a set percentage of 1:1
Every industry and business has to approach this measurement differently and there are certain types of businesses, such as consultants, that can more naturally dive into this way of thinking. The key is to create systems and processes that you know can deliver results, enter only into engagements with customers who value your approach, and set the expectation and process up front for measuring and reporting the results that are achieved and you will capture the ultimate measure of marketing success.
Photo credit: mason bryant
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