Creative Metrification - A Technique to Improve

Some things in business are relatively easy to measure ? these are the "hard" metrics such as sales volume and profit, production per man-hour, time without an accident, shipments without error, number of customers served, on-time delivery, etc. Other, "soft" metrics, are more difficult to quantify, but with a little creativity, measurement can be made of just about anything.

It is a process I call "Creative Metrification" but before I tell you more about it, I have to first issue a disclaimer. It is important to note that "soft" metrics are often not exact measurements that would satisfy a scientist or an engineer however "soft metrics" are much more precise than a "gut" reaction or a "hunch."

As an oversimplified example, let's say the goal is to increase sales by increasing "Customer Satisfaction," to increase sales to returning customers and / or decrease defections - about as "soft" a metric as there is. Is "Customer Satisfaction" measurable? Yes, if you create Creative Metrics.

As an example, one way we can measure "Customer Satisfaction" is by creating a metric I'll call "Customer Dissatisfaction Rate." The measurement will be the number of complaints you receive each month. We also keep track of the reason for complaint (product quality, errors in order picking, late delivery, staff attitude, price, etc.). From this data we can create a prioritized action plan to eliminate or significantly reduce the number of complaints and therefore the number of dissatisfied customers.

If the action taken to reduce complaints is working, over time the number of complaints, and therefore dissatisfied customers will decrease. All things being equal, as Customer Satisfaction increases, sales revenue should also be increasing. Other ways of measuring "Customer Satisfaction" are the number of referrals, responses to telephone or mail surveys, returning customers (and perhaps time between sales to returning customers also).

Is this an exact process? No, but the final measurement is whether improvement is being made and goals are attained. For many business actions, the only way to measure improvement is by using Creative Metrification.

Larry Galler, a Coach and Consultant, works with Owners and Managers of small and mid-size businesses to substantially increase sales volume and profitability through creative marketing strategies and streamlining or eliminating "administrivia."

To learn about ways Larry helps businesses acheive their goals visit http://www.larrygaller.com

---

Power Tools for Business

How do we keep track of our business deals?If you... Read More

Pressure Washing Business Case Study, Tractor Cleaning

So often small service businesses fail to exploit niches, which... Read More

Local Government Relations for Small Business

Most small businesses simply go about their daily business and... Read More

What Happened to the Money and Freedom?

Ask anyone trapped in a cubical about their entrepreneurial dream... Read More

Increase Sales in Your Home Business With These 10 Simple Ideas

Every home business has the same problem of how to... Read More

Two Types Of Business Plan Cover Pages ? Which One Are You Using?

This is the tale of two business plans with very... Read More

Administration Of Your Small Business

You've been meaning to tend to the administration part of... Read More

Consistency Builds Trust

You know your prospects need what you sell. You know... Read More

The Failures Guide to Small Business Success

How many "get rich schemes" have you joined? Or have... Read More

Lack of Vigilance Can Harm the Bottom Line

The easiest way to lift profits is to cut the... Read More

Mobile Truck Washing, Case Study

Most folks in the pressure washing business are happier to... Read More

Postcards Make It Rain Referrals

One of the simplest ways to expand your marketing efforts... Read More

Its Spring - Time For A Compensation Program Tune Up

Now that winter has passed, the annual ritual of spring... Read More

How to Remove Stress from Owning a Business... Forever!

I meet and talk to hundreds and hundreds of business... Read More

Small Business Operators - 7 Reasons You Should Change Your Accountant

A recent survey showed that only 28.7% of small business... Read More

Sex Up Your Business Growth

A top executive called up me late in the night.... Read More

Questions to Ask as Your Business Grows

Here are some of the questions that you need to... Read More

There Are No Dumb Business Questions, Not!

Q: I'm curious. What is the dumbest business question you've... Read More

Chamber Membership will BOOST your Business

When is the Chamber ideal for your business?Joining a Chamber... Read More

Hard Money Lenders -- No Money Down The Easy Way

Would it help you as a real estate investor to... Read More

Family Business and Conflicts

What is a Family Business? A family business is basically... Read More

Venus Transit - and Small Business?

On June 8, 2004, the world witnessed what no one... Read More

7 Card Tricks That Improve Your Personal Networking Power

CARD SHARK7 Card Tricks That Improve Your Personal Networking PowerThe... Read More

Public Relations: Antidote for Small Business Failure

When small businesses fail, the wreckage is often assigned to... Read More

Dispute Resolution of Territory for Mobile Franchised Companies

Franchisors of home based and mobile businesses need to carefully... Read More

Financial Fundamentals - What Every Small Business Owner Should Know!

Business owners rarely go into business to deal with the... Read More

What is Business Process Automation?

Business Process Automation or BPA for short. This was a... Read More

Equipment Maintenance Manual for Mobile Cleaning Business Outline

Service Cleaning Businesses must maintain their equipment in order to... Read More

The Truth About Government Grants for Your Business

Free money! Receive up to $25,000 that never has to... Read More

Franchising Companies Relationship Strategies

Franchising Corporations need to maintain an iron fist when it... Read More

Choose Your Own Guru

What is a guru?A guru is a teacher. A mentor.... Read More

Perfecting Your Pitch

Why should you describe your business to others in 5... Read More

Does Your Company Have a Business Image Manual

Every business regardless of size needs a "Business Image Manual"... Read More