What is a metric? Metric is a measure expressed in qualitative or quantitative way. Example of qualitative metric is excellent customer service or below average product quality. Example of quantitative metric is 25% sales growth or inventory value of $1,000. Business metrics are developed and used for tracking business performances and improving the business. Because … Read more
Average marketing and sales cost associated with acquiring new customer. Example: total marketing investment divided by number of new customers. Example: % gross margin % net margin margin per product category margin per customer segment
Traditional vs. ABC Costing Effective cost analysis allows organizations to identify all costs related to doing business. When costs are allocated to particular products, departments, activities, services, customers, etc. managers can improve their knowledge and understanding of the real cost structure. As a result, management is capable of making informed decisions such as how to … Read more
Customer / Market Segmentation Customer segmentation is critical and challenging. Understanding and quantifying your current customer base is the starting point for any successful segmentation. This step in the process requires decision makers to analyze the customer data. You need to define your current and relevant customer segments and quantify the segment size … Read more
Project Charter A Project Charter is known as a report on the project scope, goals and team members within the project. This is the essential file to make certain that absolutely everyone engaged on the project understands the role as well as the goals and objectives. This project management document is generally known as project … Read more
Quality Assurance vs Quality Control Quality management and six sigma professionals use the terms Quality Control and Quality Assurance frequently in their meetings, documents, analysis, plans and presentations. In addition, the most frequently terms used are TQM or total quality management, six sigma, statistical quality control, statistical process control and quality deployment. However business people … Read more
We use some type of KPIs, ratios or business metrics on a daily basis even not as part of our organized business reporting. Metrics like profit margins, COGS, operating cost, customer retention, customer satisfaction, number of late orders, number of customer complaints are examples of measures every organization uses as part of improving its performance … Read more
Quality management and control tools, concepts and methodologies like six sigma, total quality control, SPC, quality deployment, etc. are proven to be effective ways to improve the organizational process performances traditionally in manufacturing and industrial environment. When it comes to applying these very same strategies to sales and marketing there is a big disconnect simply … Read more
Supply Chain Metrics Why this metric is important? Many companies compete on speed and reliability – these organizations include the logistics companies like FedEx and DHL and retailers like Amazon and Wal-Mart. In addition industrial and B2B companies are also focused on improving the cycle time in order to improve delivery times and productivity. The … Read more