Tracking business success is difficult. And most businesses make the mistake of measuring what has already happened instead of what influences those results. Setting personal, departmental or corporate goals is fundamental to most people, but measuring how we perform against those values is not enough. Just measuring high level results such as revenue or number of customers is a mistake because it doesn’t answer how we got there and what should be done next.
Instead, we need to evaluate the Events that Caused those results. Certainly, we can conclude that if Revenue increased to meet our goal, we succeeded, but we don’t know what we did that caused it.
It’s much more effective to measure the actions your customers or prospects take than the end result. These actions include conversions of website visitors to paying customers and how well we are doing to influence that conversion. (More…)