The only metric that matters most for your business
In the digital era, any business may come up to a certain point of concern. It is where arises the question – how to move further? Start prioritizing your goal until it’s too late. All you need is to choose the only metric that matters, often referred to as the OMTM. But don’t panic – it doesn’t mean you have to ignore all the KPIs you used before. Keep them tracking and analyzing, but set your priority. There is one more thing you should know – your OMTM can change over time, depending on different factors. Alistair Croll and Benjamin Yoskovitz in their book “Lean Analytics: Use Data to Build a Better Startup Faster” define the next three aspects: a type of the business you run, a type of your target audience and a customer lifecycle stage. Let’s break them down to get a deeper insight.
1. Define your business type
Before choosing the most crucial metric for your company, try to define what type of business you run. The goals in different industries may differ. If you are a CEO in a big company, you may focus only on revenue growth, having already got numerous loyal customers. A small business should zero in on finding its own market niche, that is to be unique among competitors. If you have a startup – pay much attention to sponsor investments or fundraising. Think about these nuances until you are done with primary metric.
2. Determine your audience
Source: Pew Research Center surveys, 2005-2006, 2008-2015
Once you have defined your company type, move on to understanding what your target audience is. Consider such criteria as age, gender, occupation, annual income, interests, etc. It will help you choose the right channels to deliver your brand value. For instance, Tom Pick, a technology marketing consultant states that more than a third of youngsters prefer using social channels as the main channel for interaction with businesses. And Geoff Smith goes even further, saying that young generation is the most loyal to brands. So, please be consistent with defining your metric when it comes to audience targeting.
3. Consider the customer journey stage
Your metric fully depends on what step you are with the customers – lead generation, conversion, retention or loyalty. If it is the very beginning, mind your expenditures. Martin Zwilling, a Forbes contributor, strongly advises to concentrate here on customer acquisition cost. If you have already converted your prospects, estimate how to add product value and engage customers. React to customers’ feedback to make them loyal to your brand. Your utmost metric at this moment is to prolong your customer lifecycle.
In a nutshell, defining the OMTM is not a piece of cake as it requires a specific personalized approach. Want to get a free expert advice on how to find the metric, which is crucial for your type of business, get in touch right away.