Golf and the Metrics of Business
The best golfers seek to continuously improve their own score, rather than focusing on beating their competitor’s scores. They know they have no control over how well the competition does, but they certainly can control and improve their own game.
How do you currently measure your game? And more importantly, how do you continuously improve your scores?
We recently had a client ask us, “What is the industry average for new business as a percentage of overall business in my category?” We also had another client ask “How much should my average sale be?”
Measuring your business against industry averages or standards or against competitor’s metrics is fraught with flaws.
First of all, assuming the industry average is a goal worth achieving assumes the “average” is as good as you can do. In fact, averages are brought down by underperforming metrics at some of the businesses included in calculating that “average.”
And striving to simply beat your industry’s average can breed complacency when you achieve that goal and prevent you from growing to the next level.
Conversely, knowing you are not matching or beating your industry’s average can be frustrating and create self-inflicted pressures that ultimately result in poor strategic decisions.
The only score that really matters is your score. Not the industry average, not your competitor’s.
The best businesses know which metrics to measure, how to measure them, and most importantly how to develop plans and strategies to make each score better than the last. The pursuit of continuous improvement in metrics that matter will ultimately make you your industry’s leader.
Whether you measure average sale, market share, referral rates, new business rates, or a long list of other metrics, even the smallest improvement to your score each month compounds itself towards significant improvement over time.
We work with our advertisers to make each campaign more successful than the last. To achieve that, we use a Post Campaign Analysis process to measure what worked, what didn’t and to determine what can be done to improve the return on investment in your next campaign.