Measurements for the Sales and Marketing Department
January 2012
TLDR The document explains how to measure sales and marketing success and warns about misusing these measurements.
The document from 2012 outlined various metrics for evaluating sales and marketing performance, such as Market Share, Customer Turnover, Advertising Value Equivalency, Net Promoter Score, and Browse-to-Buy Conversion Ratio, providing formulas and examples for each. It emphasized the importance of these metrics in assessing sales effectiveness, customer retention, and marketing strategies, while also warning of potential manipulation or misinterpretation. Additionally, it discussed the challenges of using price as a measurement and introduced the "days of backlog" measure, crucial for production planning and financial forecasting, with an example from MicroMelt Plastics Company. The document advised separating in-house production from product resales in the backlog figure and considering the capacity of bottleneck operations to avoid misleading conclusions.
