Transcript
Sample Business Targets
How to Use This Document This document contains metrics reflecting common cross-industry business targets. We have compiled this list across sales, service, and marketing to assist you as you begin to think about setting your business targets and defining specific measures to track your progress. Some measures will be more appropriate than others for your business. You may decide on metrics not included in this document. Whatever business targets ultimately support the front-office changes you have undertaken, make sure to focus your efforts and try to not do too much at once.
Sample Business Targets
Page II
Copyright © 2006, 2008 Oracle. All rights reserved
2008
Common Business Targets for Sales
Sales
Function
Metric
Definition
Revenue Growth
Percentage increase in sales
Close Rate
Portion of sales opportunities that are converted into sales
Average Revenue Per Sales Representative
Average total annual revenue per sales representative, for field sales or telesales representatives
Average Revenue Per Customer
Total average annual revenue per customer and segment across all products and services
Average Number of Products/ Services Per Customer
Average number of products and services per customer and segment
Average Deal Size
Average size (in number of units or revenue) per sale per customer
Average Profit Per Customer
Gain in net income/number of customers
Cross-sell Rate
Number of customers that purchase additional products/services
Up-sell Rate
Number of customers that upgrade to premium products/services
Salesperson Productivity
Average level of output or productive work-time per salesperson
Sales Opportunities
Number of qualified opportunities generated
Sales Cycle Time
Average time spent on the sales process, from lead generation to sale closure
Lead Conversion Rate
Percentage of leads who become customers
Lead Response Time
Elapsed time between receipt of lead and contact with potential customer
Forecasting Accuracy
Percent of sales forecasts that fall within acceptable ranges of accuracy
Quote to Order Cycle Time
The time in days or hours required to prepare and deliver approved pricing to a customer
Order Processing Time
Average time from order placement to provisioning
Order Fallout Rate
Percent of orders which are not captured correctly or completely to enable provisioning
Internet Revenue Growth
Growth in internet revenues, year over year in dollars
Inventory Holding Costs
Total cost of carrying inventory
Sample Business Targets
Page 1
Copyright © 2006, 2008 Oracle. All rights reserved
2008
Common Business Targets for Service
Service
Function
Metric
Definition
Customer Satisfaction
Varies based upon customer measurement approach (Proprietary/J.D. Power/ACSI)
Customer Retention Rate
Percentage of customer base continuing services/total customers
Cost Per Inbound Call
Average cost per inbound call in dollars
First Call Resolution Rate
Percent of service calls resolved successfully on the first service interaction
Average Call Handle Time (AHT)
Average time to handle an incoming service call, which may or may not include call wrap-up time
Hold Time
Amount of time that service calls are on hold
Service Level
Percent of incoming service calls answered within a specified number of seconds
Abandonment Rate
Portion of callers who hang up while they are on hold
Service Issues Resolved via SelfService
Percent of service inquiries resolved via self-service channels such as the Web, email, and IVR systems, without agent interaction
Average Service Request Resolution Time
Time, in minutes, from service call to service request resolution
% of Service Requests Resolved Within Agreed Response Times
Percentage of all service requests that are resolved within the contracted service level agreement (SLA) time
Service Productivity
Average number of service requests successfully resolved per service staff
Up-Sell Rate for Inbound Service Calls
Percentage of incoming calls in which the customer upgrades to more premium services
Cross-Sell Rate for Inbound Service Percentage of incoming calls in which the customer subscribes to Calls additional services Products Per Customer
Number of accounts, products, and services the customer purchases
Customer Lifetime Value
The future financial value a customer supplies, minus the cost of acquiring and retaining the customer
Average Profit Per Customer
Average profit per customer, in dollars
Service Revenue Growth
Percentage growth in service revenue
First Visit Resolution Rate
Percentage of field visits resolved on the first interaction
Average Cost Per Field Service Call Total average cost of successfully completing a field service call, by call type Repair Turnaround Time
Time required to repair a piece of equipment from the time a repair order is submitted
On-Time Delivery
Percentage of orders delivered on time
Sample Business Targets
Page 2
Copyright © 2006, 2008 Oracle. All rights reserved
2008
Common Business Targets for Marketing
Marketing
Function
Metric
Definition
Marketing Campaign ROI
Return from incremental sales volumes on the customer’s investment for individual marketing campaigns and for marketing efforts overall (measurement approach varies by customer)
Marketing Response Rate
Rate at which a company acquires new customers
Marketing Efficiency
Level of output or result per marketing activity
Marketing Effectiveness
Results generated from marketing efforts
Marketing Costs
Marketing expenses incurred for campaigns, mailings, and so on.
Response Rate
Results generated from marketing efforts
Lead Conversion Rate
Percentage of prospective clients who become customers
Prospect Lead Conversion Rate
Percentage of prospective clients who become customers
Cost Per Lead
Spending required to generate a lead
Customer Acquisition Cost
Average cost including advertising, marketing, and discounts to acquire each gross new customer
Customer Acquisition Rate
Rate at which a company acquires new customers
Cross-Sell Rate for Outbound Marketing Efforts
Percentage of marketing offers (delivered through direct mail, email, telesales, and so forth) for which the customer subscribes to additional services
Up-Sell Rate for Outbound Marketing Efforts
Percentage of marketing offers (delivered through direct mail, email, telesales, and so forth) for which the customer upgrades services to more premium levels
Loyalty Program Participation
Enrollment in a company’s loyalty program designed to reward customers for their business
Net Customer Additions
Net change in total customer base for a period, defined as total gross customers added, less existing customers lost due to churn
Market Share
Current customers as a percentage of all potential customers in competitive markets served
Installed Base Sales
Percent of sales made to existing customers
Customer Share of Wallet
Percentage of total customer purchases made at a company
Customer Churn
Percentage of existing customer base in competitive markets canceling service each month to go to competitors
Cost to Retain an Existing Customer
Average cost including marketing, advertising, and incentives to retain an existing customer
New Product Rollout Time
Number of days required to successfully roll out new products, bundles, and offers across all relevant channels
Sample Business Targets
Page 3
Copyright © 2006, 2008 Oracle. All rights reserved
2008
