Business models inform how a business makes money.
The key activities of the business drive the key results. Every business has key numbers. The bigger question is,what are the key activities that drive performance? What is success and how are we defining it and then how are we measuring it?
Don’t let all this fancy CPA, CLV, AOV acronym talk seduce you. Lot’s of nut balls throw these numbers around like they are the miracle formula for sales growth or the fountain of marketing youth. Click on the chart to see a KPI cheat sheet. It’s a quickie to show you a few common KPI performance indicators.
Okay so we know how much marketing spend we can invest and still make money as we acquire new clients. I agree this is important. But are these the key business activities to drive YOUR success. Well, Pam client acquisition usually is key…yes but THINK. Every business model has different key activities and drivers that drive sales and profits sometimes it’s new clients sometimes it’s email subscriptions, sometimes it’s donations….BE specific.
KPI Key Performance Indicators: The Quickie. They are important. As are markers of success. KPI’s will never be more important than the business model you execute, the clarity of your vision, the team you develop and the manner in which you execute the key business activities. They are benchmarks that help us navigate the journey to our business goals, they help us understand the specifics of how our business model makes money and how it grows.
Got it? Good. Now enjoy the examples above. And analyze and measure. Just make sure you are measuring and analyzing the true drivers, key activities that determine your success.
It would be a shame if you ended up over monitoring and under executing…
Marketing for Incredible Results….
pam @ pamhoelzle. com