Performance indicators for companies

Brief review of the main marketing management indicators.

Any company must maintain strict control over its results, it must have management indicators with which the performance analysis corresponding to the company can be developed, observing the marketing part and the global operation of the same.

Below is the list of the main performance standards, or management indicators to measure different aspects of companies.

GENERALITIES:

There are three main types of standards for evaluating performance in companies:

EFFECTIVENESS RULES: They are those that measure the general sales performance and sales trends according to the company's segmentation EFFICIENCY RULES: They are standards related to relative costs EFFECTIVENESS RULES - EFFICIENCY: They are the ones that mix performance of sales against cost performance to generate indicators that relate to the company's profits.

Analysis: There are standards or indicators that measure sales performance, cost performance, and those that show profit development.

EFFECTIVENESS INDICATORS

There are two types of indicators to measure management effectiveness.

Sales indicators or criteria. Customer satisfaction measures.

Sales criteria:

Total sales: Total amount of income received from the sale of products Sales by product line: Total amount of sales by product or product lines Sales by geographic area: Total amount of sales by location Depending on the size of the company, sales data in countries, regions, localities, or stores can be obtained.Sales by seller: This criterion also serves to evaluate the sales staff.Sales by type of customer: Determine if the Buyer is corporate, final consumer, government consumption etc. Sales by market segment: It is important with this indicator to be clear about the segmentation criteria: Sex, Age, Education or schooling and income level Sales by order size: This indicator serves much to determine,the most important buyer types and market niches. Thanks to this indicator, preference policies can be determined: (special customers, promotions, discounts, personalized attention, etc.). Sales through an intermediary: This indicator helps us to determine with whom we should make alliances and what types of intermediaries fit the products of the company. (retail stores, large distributors, sales through families, etc.) Market share: Determines the relative position of the company vis-à-vis its competitors Percentage change in sales: Determines whether the company increases or decreases its turnover.Sales by intermediary: This indicator helps us to determine, with whom we should make alliances and what types of intermediaries are adjusted to the company's products. (retail stores, large distributors, sales through families, etc.) Market share: Determines the relative position of the company vis-à-vis its competitors Percentage change in sales: Determines whether the company increases or decreases its turnover.Sales by intermediary: This indicator helps us to determine, with whom we should make alliances and what types of intermediaries are adjusted to the company's products. (retail stores, large distributors, sales through families, etc.) Market share: Determines the relative position of the company vis-à-vis its competitors Percentage change in sales: Determines whether the company increases or decreases its turnover.Determine if the company increases or decreases its business volume.Determine if the company increases or decreases its business volume.

Proper monitoring of the company's management indicators allows to quickly detect the errors that the company makes, saving and improving effectiveness in the long term.

Customer satisfaction criteria:

Quantity purchased: Amount of product consumed by each customer or user Degree of loyalty to the brand: Determine if the buyer is frequent, and habitual, or if it is occasional Repeat purchase rates: Determine how often the buyer needs, purchases and uses the product. Perceived quality: Determine the notion of quality of the product and also the image of the company if it is the case. Brand image: Accepted or not accepted, known or unknown etc… Number of complaints and claims: This indicator, it is widely used to determine the customer service capabilities of the company.

EFFICIENCY INDICATORS:

The efficiency indicators are strictly related to costs and follow the same parameters as sales:

Total costs Costs by product or product line: It is important to determine here the impact of transportation and distribution costs Costs by geographical area Costs by vendor: They also serve to evaluate worker performance Costs by type of client: Generally costs They increase if the buyer is corporate in the presentation of the product, but they decrease due to the volume of sale Costs by market segment Costs by order size: Related to item 5. Cost by sales territory Costs by intermediary Percentage change in costs: This indicator is key to determine the viability of the company in the long term.

EFFECTIVENESS STANDARDS EFFICIENCY

Since they result from income minus expenses ratios, they determine the effectiveness of the business and follow the same sequence that has been followed up to now.

Total profits Profits by product or product line Profits by geographical area Profits by seller Profits by type of customer Profits by market segment Profits by order size Profits by sales territory Profits by intermediary Percentage change in sales utilities.

FINAL CONSIDERATIONS:

As is logical, the optimal determination of the company's strategies should focus on the market segments that generate the highest business volumes and profits. Uncontrolled growth can generate losses in the long term, so it is necessary to adequately balance the part of business volume and growth, with the part of costs.On many occasions, poorly performed cost studies make management make exaggerated expansion decisions, generating sunk costs Customer care and service, plus the clear determination of the company's competitive advantages, are fundamental factors that maximize revenue and reduce costs Profit generation is the 1st factor for any investor. They currently do not forgive mistakes, so control is vital.

Excellent control and monitoring of the company will be essential to determine its long-term viability.