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Having a set of metrics that you watch & that you feel are the key drivers of your success helps keep clarity. And the more public you can make your goals for these key metrics the better. 4 times / 100 means if a customer uses your app frequently (say 10-20 times / day) then they are crashing nearly every day.
Yet, as a business consultant, I often find minimal focus on improving employee engagement and assessing their customer-facing performance. For example, I commonly see metrics to keep track of revenue per employee, overtime, and absenteeism, but I don’t often see measures of overall customer satisfaction with individual employees.
Even after many years mentoring entrepreneurs and advising businesses, I continue to be surprised by the primary focus on products and processes, and the often incidental attention to hiring and nurturing the right people. It’s the same for customers and products, where analytics have long proven their value.
Many startup CEOs hire COOs or launch companies with a co-founder carrying the title. When should founders hire one? There’s simply too much nuance and too many options, all with varied pros and cons, to suggest a silver bullet in your hiring process. More importantly, A-players attract and hire other A-players.
It’s always tempting to think that more product variations will satisfy more customers and lead to new sales. Some chaos is normal in every new business, but many wait far too long before they install metrics based on “best practices,” and fail to attack obvious bottlenecks with a vengeance. Excessive support and return activities.
Once you build it, they will now ask you about the key metrics that they need proven in order to see if you really are a good investment. The second bullet, getting feedback from customers is most often not valid either. The real reason to build an MVP is to do early tests of key Startup Metrics for the business.
There has been a lot of public debate over the past several weeks about whether it’s a good thing to be “gross margin positive” or not and commentary always reminds me that some people at startups don’t quite understand financial metrics or even how to think about which ones are healthy. Customer acquisition cost. That bit is easy.
I like the summary of the competitive reality in a new book, “ Rethinking Competitive Advantage: New Rules for the Digital Age ,” by Ram Charan, who relates a wealth of current experience from global clients: Customers expect a personalized experience. Select new hires with attention to values.
How does a newly hired Chief Technology Officer (CTO) find and grow the islands of innovation inside a large company? I just had coffee with Anthony, a friend who was just hired as the Chief Technology Officer (CTO) of a large company (30,000+ people.) Instrument the process with metrics and diagnostics. His challenge was to.
But even well-prepared startups that have laid out strategies for scaling can find themselves scrambling in the face of a fast-growing customer base. Founders need to make sure the quality of the startup’s offerings remains high and provide adequate sales and service support for prospective customers and new users.
Most leaders agree that poor customer service is a business killer today, in terms of lost customers, reduced profits, and low morale. Yet the average perception of customer experience has not improved. You have to start with hiring only people who are willing and able to make serious customer service happen.
If you hire 6 sales reps in January at $120,000 / year salary then you’ve taken on an extra $60,000 per month in costs yet these sales people might not close new business for 4-6 months. So your Q1 results will be $180,000 less profitable than if you hadn’t hired them. Hiring more people isn’t always the right answer.
There is nothing more pure than building a product, putting it out in the world and seeing paying customers using your product and in some cases loving it. As a startup in this phase you often raise capital, get press, hire staff and everything feels possible. How long does it take me to pay back my original customer acquisition costs?
In his classic book, “ The Leadership Capital Index ,” Dave Ulrich, a best-selling author, business consultant, and business school professor, provides some real insights and metrics on what makes up the elements of goodwill in the minds of top valuation experts. I have paraphrased his key points here as follows: Leader personal impact.
By focusing intently on a single measurement, known as a north star metric. They even employ a dedicated “System Implementation Manager” whose sole responsibility is to drive adoption and get 70% of customers using the product daily. The north star metric defines success for the whole company and aligns teams on a growth trajectory.
Even after many years mentoring entrepreneurs and advising businesses, I continue to be surprised by the primary focus on products and processes, and the often incidental attention to hiring and nurturing the right people. It’s the same for customers and products, where analytics have long proven their value.
In his classic book, “ The Leadership Capital Index ,” Dave Ulrich, a best-selling author, business consultant, and business school professor, provides some real insights and metrics on what makes up the elements of goodwill in the minds of top valuation experts. I have paraphrased his key points here as follows: Leader personal impact.
As a long-time mentor to entrepreneurs, here is my collection of smart risks that investors and I look for in new startups: Focus on a tough customer problem rather than a fun technology. Investors hate technology solutions looking for a problem, due to the high risk of no customers. Customers like leaders, not followers.
Once upon a time every great organization was a scrappy startup willing to take risks – new ideas, new methods, new customers, targets, and mission. Metrics are used to manage process rather than creation of new capabilities, outcomes and speed to deployment. Companies Run on Process. The consultants reorganize the company (surprise!),
As a potential investor, I always think of the high rate of failure of disruptive technologies, due to the longer learning curve of customers, infrastructure change consistently required, and higher marketing costs. Before you act, shut up and listen to employees, customers, and futurists. If you can’t measure it, you can’t manage it.
As a long-time mentor to entrepreneurs, here is my collection of smart risks that investors and I look for in new startups: Focus on a tough customer problem rather than a fun technology. Investors hate technology solutions looking for a problem, due to the high risk of no customers. Customers like leaders, not followers.
Reading the NY Times article “ Jeffrey Katzenberg Raises $1 Billion for Short-Form Video Venture, ” I realized it was time for a new startup heuristic: the amount of customer discovery and product-market fit you need to find is inversely proportional to the amount and availability of risk capital. He just hired Meg Whitman.
As a long-time mentor to entrepreneurs, here is my collection of smart risks that investors and I look for in new startups: Focus on a tough customer problem rather than a fun technology. Investors hate technology solutions looking for a problem, due to the high risk of no customers. Customers like leaders, not followers.
Metrics like Return on Net Assets, Return on Capital and Internal Rate of Return are the guiding stars of the board and CEO. As Harvard professor Clayton Christensen noted, these efficiency metrics provided wise guidance for times when capital was scarce and raising money was hard. Ultimately this is not just another staff function.
None of this was law, and nothing in writing required this; this was just how these firms did business to protect their large institutional customers who would buy the stock. This required a repeatable and scalable sales process, which required a professional sales staff and a product stable enough that customers wouldn’t return it.
The studio’s internal team builds the minimal viable product, then validates an idea by finding product/market fit and early customers. If the idea passes a series of “Go/No Go” decisions based on milestones for customer discovery and validation, the studio recruits entrepreneurial founders to run and scale those startups.
His company had marched through customer discovery, learning about the customer problem, validated solutions and was now scaling sales and marketing. After a few months of talking to customers and working with sales, we defined the marketing Mission (our job) as: Help Sales deliver $25 million in sales with a 45% gross margin.
My simple answer is that they keep their focus on customers, rather than technology. Jeff Bezos has kept his focus on customers. In my view, every startup in today’s world would do well to adopt a management system with the same key objectives: Start with a customer-obsessed business model.
." Revenue doesn't pay your bills, GM does — @msuster 2/ Founders obsess with revenue as a vanity metric. Payback periods on customer acquisition way more important to you in the near-term. Some even grow "bad" revenue just to show growth.
This strengthens customer relationships and drives long-term growth. Exploring the Advantages of White Label SEO Services for Businesses White label SEO services enable businesses to scale their offerings without hiring additional staff or expanding their expertise in-house.
Most leaders agree that poor customer service is a business killer today, in terms of lost customers, reduced profits, and low morale. Yet the average perception of customer experience has not improved. You have to start with hiring only people who are willing and able to make serious customer service happen.
Why Call Tracking Metrics Matter To Your Marketing Efforts written by John Jantsch read more at Duct Tape Marketing. Key Takeaway: Today, it seems as though there’s a never-ending list of channels and ways in which your customers can communicate with you and your business. Marketing Podcast with Todd and Laure Fisher.
If you can’t keep the customers who sign up with you, you’re going to quickly find yourself in trouble. I get calls all the time from clients struggling to retain new customers. The point is, before you change your pricing, you need to dig deeply into what’s really driving your customers away.
A platform is a business model and capability that can be accessed and customized by external users. Create and practice an obsession over customers. Make sure everyone knows it’s their job to maintain empathy and exceed customer expectations. Institute deep metrics measuring all aspects of the customer experience.
It reflects your brick-and-mortar experience, if you have one, and sets the tone for what customers should expect when doing business with you. Furthermore, metrics help you continually refine and improve your marketing over time. Furthermore, metrics help you continually refine and improve your marketing over time.
My daily life consists of (a) setting the strategy and rationale of the Engineering & Innovation department, based on a mixture of vision, data, and the needs of the rest of the company, (b) participate in doing the same for the whole company, (c) hire, (d) manage the managers whose teams execute the real work.
Unlocking the Power of Data: Transforming Metrics into Actionable Insights written by John Jantsch read more at Duct Tape Marketing The Duct Tape Marketing Podcast with John Janstch In this episode of the Duct Tape Marketing Podcast , I interviewed Peter Caputa, CEO of Databox, an innovative player in the realm of marketing analytics.
For many remote (and even regular) companies, company culture is something ethereal and abstract: while the most important metrics (customer engagement and satisfaction, employee turnover and retainment) are closely monitored, features like company culture are often neglected. by Denis Kryukov from Soshace.
You should always design with the customer experience in mind. Patrons refers to the customers your company serves. A diversified customer base can reduce cash flow risks and greatly increase your company’s value. Finally, hiring the right M&A Advisor to guide you through the process can help in achieving a maximum profit.
Thus they are blindsided and try to react quickly when a new competitor starts stealing customers. For example, we all remember when Blockbuster realized too late that Netflix was stealing customers by offering videos online rather than via DVDs, but even then they were unable to adapt their processes and their thinking.
New data-powered solutions give companies that would ordinarily be too large to customize their offerings the insight to do so. SMBs no longer have to choose between hiring an in-house data science team or off the shelf enterprise analytics software. Solutions aimed at SMBs are more widely available. In 2016, SMBs used an average of 4.8
He outlines six dimensions of a winning business strategy, with some practical, research-based steps that I like, to focus on in achieving extraordinary results: Above all, deliver an exceptional total customer experience. This requires constant study of what your customers value, what competitors offer, and your target market.
Key Takeaway: In the world of customer experience, mishaps are inevitable. However, by approaching customer recovery with style, empathy, and exceptional ownership, businesses can turn these situations into opportunities to create raving fans. 15:10 What are the best strategies for fixing a poor customer experience? [17:56]
Hire professionals. A CPA provides input on tax structure and metrics, and assists with due diligence related to your industry. Protect your company’s customers, employees and intellectual property. Before you get started, though, think pragmatically on the front end to avoid headaches at the back end.
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