Performance Indicators

Performance Indicators tell how the organization is doing

In its simplest form, a performance indicator is a type of performance measurement that helps you understand how your organization or department is performing. A good KPI should act as a compass, helping you and your team understand whether you’re taking the right path toward your strategic goals. To be effective, a performance indicator must:

  1. Be well-defined and quantifiable
  2. Be communicated throughout your department.
  3. Be crucial to achieving your goal
  4. Be applicable to your department.

CPM - Cost per thousand impressions

The CPM stands for cost per thousand impressions is the rate to be charged or paid for every 1,000 times an advertisement is displayed

CTR - Click Through Rate

The page click through rate (CTR) is the number of ad clicks divided by the number of page views.

CPC - Cost per Click

The cost-per-click (CPC) is the amount you earn each time a user clicks on your ad

Formula - CPM

The formula for calculating CPM based on CTR and CPC is: CPM = 1000 × CTR × CPC

Formula - CPC

The formula for calculating CPC based on CTR and CPM is: CPC = CPM / (1000 × CTR)

Formula - CTR

The formula for calculating CTR based on CPM and CPC is: CTR = CPM / (1000 × CPC)

Customer Acquisition Cost

All Sales and Marketing costs (advertising, salary, commission, bonus, overhead and other) in a period divided by the number of new customers in that period

Marketing % of Customer Acquisition Cost

Take all the Marketing cost, and divide by the total Sales and Marketing costs you used to compute CAC

Ratio of Customer Lifetime Value to CAC

To compute LTV. take the annual payments from a customer. adjust for your gross margin. and divide by the annual cancellation rate or churn. Then divide LTV by CAC for the ratio

Time to Payback CAC

Take the CAC and divide by how much your customers pay you on average each month

Marketing Originated Customer %

Take all new customers you signed up in a period, and look at what % of them started with a lead that Marketing generated

Marketing Influenced Customer %

Take all new customers you signed up in a period. and look at what % of them had any interaction with a Marketing activity

Definitions

What is a Value Proposition?

Your customer value proposition is your starting point of the current international process. How do you ensure that you get your fair share of attention and profitable business? How do you ensure that your products and services are part of the solution that will help your customer and not part of the problem they are trying to solve?

What is a Distribution Strategy?

The Distribution Strategy defines the sales and marketing channels and processes for your type of product or solution and provides a foundation for making implementable and practical decisions concerning distribution on the short-term as well as long-term.

What is a Technology Assessment?

The Technology Assessment is an analysis of the technological foundation, policies and procedures to manage product development, release plans, roadmaps, and support.

What is an Organization Assessment?

The Organization Assessment is an analysis of your organizational resources and structures about to your globalization ambitions.

What is a Distribution Framework?

The Distribution Framework includes all programs and the legal agreements required to enable the internal organization to successfully implement the distribution strategy.

What are Go To Market Tools & Deliverables?

Companies usually use a broad range of tools for internal collaboration, market communication, pre- and post sales support, and performance analysis. Here is our checklist we use for initial onboarding: Try Readiness & Deliverables

What is a Market Outlook & Forecast

The Market Outlook gives you the answers to your most fundamental questions concerning market development in your business arena.

What is a Target Market Analysis?

The Market Analysis Demand Side gives you the information insight into what your potential customers are currently using? When are they planning to change?

The Market Analysis Supply Side gives you the information such as main competitors, their approaches, market size, dominating technologies and price structures.