In: Accounting
challenges that specific companies or industries must overcome to be successful are as follows:
1.Brand Preference: This measure helps you understand the position of your company and your products and services in relation to competitors. Many marketers talk about awareness, which addresses whether people know you exist, but what truly matters is whether you are among “the chosen.” If you are conducting awareness studies, consider modifying these to learn how your company and its offerings rank in consideration. Your goal is to understand how you stack up relative to the competition.
2.Take Rate: Ok, you’ve built preference; the next key non-financial metric is your take rate. This is how many customers/prospects act on your call to action, whether this is an offer to download a case study, sign up for a free trial, or schedule an appointment. Calculating take rate is relatively easy. Here’s a quick example. Let’s say you are a cyber security company and you create a campaign that offers a 20% discount on a risk assessment to anyone who signs up within the next 30 days. The campaign costs $10,000 (direct and indirect.) Your email sends the offer to 1000 customers in your database and 100 register for the offer. Divide the number of uptakes (100) by the number of customers you engaged (1000). In this case 10% is your take rate. The acquisition cost is 10,000/100 or $100 per registrant. Is this a good number? We can decide whether the investment is a good return by determining whether the campaign had a good return and whether the people who took the offer bought the security services.
3.Innovation: Innovation is your ability to bring new products/services to market successfully. Both the number of new products in the pipeline and the adoption rate of these new products reflect your company’s ability to bring value to your customers and the market.
4.Customer experience:Customer experience has direct impact on customer retention and churn. To measure customer experience you need to take into account all of the major touch points where a customer interacts with your company. Once you have these you will want to establish key criteria for what constitutes a superior vs. subpar experience.t hear are few of the non financial aspects which would determine success or failure of a company.
It is adviced to share non financial performance as well this as this would enable investors to take the right decision was daily.