Marketing and Sales Perspective

Why is this important?

Understanding the size of the market in which a company is operating and the rate at which this market is shrinking or growing is a key indicator to assess future revenue growth potential.

A key role of the management team is that they identify future growth opportunities in existing and new markets. Therefore identifying these markets and evaluating their growth rate is a vital piece of performance data.

The size of the market is measured by the total number or value of units (goods or services) sold in that market during a specified time period (usually one year). The market growth rate is a simple ratio of taking the market size of this period (e.g. this year) and dividing it by the market size of the preceding period (e.g. last year). A market growth rate of below 1 indicates a shrinking market while a ratio of above 1 indicates a growing market.

With respect to Marketing and Sales Perspective, below are a few KPI's which a businessman should be mindful of:

  1. Market growth rate

  2. Relative market share

  3. Brand equity

  4. Cost per lead

  5. Conversion rate

  6. Search engine rankings (by keyword) and click-through rate

  7. Page views and bounce rates

  8. Customer online engagement level

  9. Online share of voice (OSOV)

  10. Social networking footprint

  11. Klout score