Evaluation of the results of the firm's marketing activities...

Evaluation of the results of the firm's marketing activities using the system of key performance indicators

For marketing plans to be successfully implemented, constant coordinated activity of all divisions of the company is necessary. For this, it is necessary that the goals and objectives of the units and even of individual employees be coordinated with the goals and strategies of the firm. Only in this case, employees, successfully solving the tasks assigned to them, will ensure the achievement of the company's strategic goals. Employees of all levels of management must understand for what purposes they work and how the results of their activities influence the implementation of the company's strategic plans.

It is a question that the control over the implementation of plans should be carried out only with the help of evaluating the performance of the firm as a whole or its SBU, for example, using indicators of growth rates of sales and profit, market share, etc. It is important to monitor the implementation of strategic and tactical goals, to identify factors that affect the achievement of market objectives of the company.

To solve this problem, the system of key performance indicators KPI (Key Performance Indicators ) is used, which characterizes by the most important parameters the activity of both the firm as a whole and its individual units, and employees.

The task of KPI is to translate the company's strategy into a comprehensive set of indicators of its activities, which determines the main parameters of the measurement and control system. In this case, KPI:

• allow us to identify the patterns of business development in general or individual business processes;

• provide an opportunity to evaluate the work of each employee or group of employees;

• used in short-term and long-term budgeting;

• help motivate staff to achieve results;

• increase the responsibility of each employee for his work site;

• provide an opportunity to develop and improve the most promising areas of business;

• provide a basis for finding weaknesses;

• in an accessible and visible form show the effect of a process on the result;

• give meaningfulness to every managerial decision.

Thus, the KPI system is a strategic tool

and operational management, which allows you to reconcile the strategic objectives of the firm with business processes and daily activities of employees at each level of management, as well as carry out ongoing monitoring of the implementation of the adopted strategy.

For successful operation, the KP1 system must be based on a number of fundamental principles:

• Compliance. Key indicators should be consistent with the strategic and tactical objectives of the firm.

• Objectivity. Use only calculated indicators based on objective information.

• The significance of the indicators. From the set of efficiency criteria, it is necessary to identify the main groups of indicators to avoid duplication of information.

• Compliance with the management structure. The group of indicators should be formed in accordance with the main structural units and lines of work of the firm.

In Table. 4.2 provides examples of key performance indicators in the area of ​​customer relationships.

Table 4.2

Key performance indicators in the area of ​​relationships

with customers

Metric

Definition

Customer Satisfaction

Consumer Satisfaction Index

The percentage of customers who bought the product according to the recommendations

Number of customers who buy the product on the recommendation Total number of customers

Profit from customer

Net customer revenue - customer costs

Customer Temporary Value

Average customer relationship duration

Aggregate Customer Value

Total profit from this customer for the period of cooperation with him

Customer's turnover coefficient

Number of terminated (not renewed) contracts

Total number of contracts with customers

Percent of lost orders

Number of lost orders Number of received orders

Frequency of purchases

Average frequency of purchases for a certain period

Key performance indicators allow you to assess the quality of work of structural units and individual employees of the firm. These indicators are used in modern employee incentive systems.

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