ABSTRACT
It has been said that “you can’t manage what you can’t measure.” One of the prime challenges that company executives face is choosing the measures (metrics) that matter most. ese “right” measures or key performance indicators (KPIs) are used to assess business success and plan future customer value (CV) strategies. And the definition of success, like corporate cultures, varies from one organization to another. Since we cannot measure everything, the challenge is to focus on those metrics that truly impact business performance. As an example, a travel provider in the time-share industry concentrated on four functional areas-operations, production, customer service, and marketing (business development). For the marketing department, one key metric dealt with pitch-rate conversion of weekly unit purchases; the objective was to improve from one-in-seven prospect closes to one-in-six.
