Do You Know How To Measure That You’ve Solved Your Customers Problem?

People will probably jump straight to profit or revenue as the proxy for the business being successful in their object (solving the problem for the customer).

But if you only measure these things that is what will get managed.

If you are measuring for revenue only as a success indicator that can be gamed with huge advertising spends or deals being done that ultimately aren’t in the companies best interest and ultimately pushing the company into a loss making status even with huge revenues.

If you measure only profit that can be gamed too, you can push profit up by cutting back on costs or the service customers receive and ultimately this can undermine the core business and eventually reduce the profitability even if it goes up in the sort term.

To get the metrics right you need to find one that shows you are solving the customers problem (that they hire your good or service to do) whilst maintaining profitability and the other key metrics for business.

This will look different for every business so you’ll need to map it against what you are setting out to achieve.

If you are a personal trainer who wants to help customers build their confidence through how they look or feel you can develop metrics for that.

If you are a car mechanic you can measure how many customers cars are kept on the road (and maybe how customers stresses are reduced by using your car garage).

Whatever your business, make sure you know the right metrics to be measuring instead of going for the easy ones!

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